Chinese real estate portal group SouFun Holdings, also known as Fang, has announced a loss of $110.2 million with its share holders wearing $111.6 million of it, a $0.23 loss per fully-diluted earnings ADS.
The loss, reported in its 2016 first quarter results, was despite a 62.3 per cent year-on-year growth in revenues to $204.6 million. Revenue from e-commerce services increased by 154.0 per cent year-on-year to $130.9 million.
Along with growth in e-commerce services, fang reported strong results from its Internet financial services which increased 200.1% from $3.5 million to $10.6 million for the three months ended March 31, 2016, primary due to rapid growth in our financial services to the real estate brokerage services.
Fang's value-added services didn't fare too badly with a 27.8 per cent increase to $8.5 million due to the growth of our data and research related products.
Meanwhile revenue from marketing services saw a 25.1 per cent declined to $30.4 million while listing services achieved revenues of $24.1 million which Fang points out is is higher than the $23.6 million for the corresponding period in 2015.
Operating loss was $110.2 million for the three months ended March 31, 2016, compared to operating income of $7.5 million for the corresponding period in 2015.
Adjusted EBITDA was $100.4 million loss for the three months ended March 31, 2016, compared to income of $11.3 million for the corresponding period in 2015.
As of March 31, 2016, Fang had cash on hand of $708.4 million, compared to $880.5 million as of December 31, 2015. Net cash used in operating activities was $67.2 million for the three months ended March 31, 2016, compared to Cash flow used in operating activities was $54.7 million for the same period in 2015.
Fang has adjusted its total revenue guidance for 2016 from $1,060.2 million, representing a year over increase of 20 per cent to around $1,148.6 million, representing a year-on-year increase of 30.0 per cent.
"62.3% revenue growth was our highest quarterly growth rate in the past five years which leads to the increase of our annual revenue guidance,". Fang.com Chairman and CEO Vincent Mo.
" Our E-commerce businesses, directly targeting at consumers, are contributing close to 70 per cent of our total revenue.
"This is a clear sign that our transformation to serve individual end users is right on track and we expect to see a complete turnaround in quarter four of this year," he says.