SouFun Increases FY16 Revenue Guidance; Posts Loss In Q1, Revenue Up 62.3%

(RTTNews) - SouFun Holdings Limited (SFUN), the leading real estate Internet portal in China, adjusted its total revenue guidance for 2016 to around $1.15 billion, representing a year-on-year increase of 30.0%, from $1.06 billion, representing a year over increase of 20%. Analysts polled by Thomson Reuters expect the company to report revenue of $1.17 billion, for fiscal 2016.

Fang reported total revenues of $204.6 million for the three months ended March 31, 2016, representing an increase of 62.3% from $126.0 million for the corresponding period in 2015, primarily driven by the growth in e-commerce services. Revenue from e-commerce services increased by 154.0% year-on-year to $130.9 million. Analysts expected revenue of $191.05 million for the quarter.

Cost of revenue was $209.6 million for the three months ended March 31, 2016, an increase of 357.6% from $45.8 million for the corresponding period in 2015. The company said the increase in cost of revenue was mainly attributable to increased staff cost.

Vincent Mo, CEO of Fang.com, said: "Our E-commerce businesses, directly targeting at consumers, are contributing close to 70% 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."

Net loss attributable to Fang's shareholders was $113.9 million, compared to net income $6.1 million for the corresponding period in 2015. Non-GAAP loss per ADS was $0.24 for the quarter. On average, seven analysts polled by Thomson Reuters expected the company to report a loss per share of $0.12 for the quarter. Analysts' estimates typically exclude special items.