Leju Holdings Limited, a leading online real estate services provider in China, has posted a 9 percent bump in revenue from listings services in the second quarter of 2016.
The increase, from $5.2 million to $5.7 million for the the same quarter of 2015, was primarily due to growth in secondary home sales but it’s a bright note on an otherwise relatively flat balance sheet.
Total revenues were $158.3 million compared to $157.8 million for the same quarter of 2015.
Revenues from e-commerce services were $118.2 million, an increase of just 1 percent from $117.4 million for the same quarter of 2015, primarily due to an increase in the average price per discount coupon redeemed, partially offset by the decrease in the number of discount coupons redeemed.
Leju offers real estate e-commerce, online advertising and online listing services. Leju's integrated online platform comprises various mobile applications along with local websites covering more than 370 cities, enhanced by complementary offline services.
Net income was $8.6 million, a decrease of 26 percent from $11.6 million for the same quarter of 2015. Non-GAAP net income was $14.3 million, a decrease of 15 percent.
Income from operations was $10.1 million, a decrease of 33 percent from $15.0 million, with non-GAAP income from operations down 21 percent to $16.5 million.
Revenues from online advertising services also dipped in this quarter, down 2 percent from $35.2 million to $34.4 million, which the company says is because of a decrease in property developers' online advertising demand.
The cost of revenues dropped to 7 percent to $14.6 million from $15.7 million for the same quarter of 2015. But a jump in marketing expenses to maintain market share in the highly competitive Asian market and to promote the company’s listings business meant selling, general and administrative expenses rose 5 percent from $127.5 million to $134.3 million.