Hurray, a Beijing-based company involved in wireless music distribution, artist development and music production, reported a year-on-year sales increase for the third quarter ended Sept. 30 but a dras
Hurray, a Beijing-based company involved in wireless music distribution, artist development and music production, reported a year-on-year sales increase for the third quarter ended Sept. 30 but a drastic decrease in after-tax income.
Hurray's total sales in the July-September period were $18 million, up 104% from the corresponding period of 2005, while net income was $1.6 million, down 68%.
Wireless value-added services revenues were $16.4 million, up 8%. Software and system integration services revenues fell 93% to $100,000.
Recorded-music revenues were $1.5 million, up 10.9%. No year-on-year comparison is available since Hurray! entered that sector only recently.
Hurray attributes this growth to its recent entrance into the recording business through its majority-owned labels Huayi Brothers Music and Hurray Freeland Music, which are both based in Beijing.
In a statement, Hurray chairman/CEO Qindai Wang tried to put a positive spin on the reported declines: "We are pleased to report a very solid quarter which exceeded our previous estimate with only 1.1% sequential decline in wireless revenues despite significant regulatory change and a challenging operating environment."
He added, "Our core business has demonstrated remarkable resilience as a result of our successful execution of multi-platform, multi-channel and multi-operator strategies. Our effort throughout past year in solidifying business foundations and building a strong new management team began to pay off."