China Digital TV (STV) Reports Q3 Loss of $0.01
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China Digital TV (NYSE: STV) reported Q3 EPS of ($0.01), versus ($0.01) reported last year. Revenue for the quarter came in at $12.08 million, versus $10.68 million reported last year.
"We are glad to report another quarter with solid growth of our cloud business, primarily driven by the rapidly expanding customer base and enriching content offerings," commented Mr. Jianhua Zhu, China Digital TV's chief executive officer. "During the third quarter, revenues from our cloud platform grew substantially year over year, and the total number of registered users on our cloud platform increased to 4.3 million from only 1.5 million a year ago. The strong performance boosts our confidence to further increase our geographic diversification by expanding the cloud platform into new cities and provinces in the fourth quarter. On the other end, we continue to work diligently with our own development team and partners to further enhance our current cloud content portfolio, especially in the areas of online education, shopping, as well as virtual reality ("VR") related shows and programs. Although our traditional business in the cable TV market still faces challenges, it will continue to stabilize. We remain committed to transforming into a leading provider and gateway for cloud-based entertainment content into the home throughout China. We believe our cloud business will continue to benefit from tremendous secular growth as new market opportunities arise from cloud-based home entertainment into Chinese homes."
Mr. Zhenwen Liang, China Digital TV's chief financial officer, stated, "We witnessed solid business performance during the third quarter of 2016. However, we experienced continuous downward trend in average selling prices ("ASP") for smart cards, which was partially caused by the deprecation of Renminbi ("RMB"). We remain cautiously optimistic on the traditional cable TV market as it matures and stabilizes, which will benefit our overall margin profile as we manage our cost control carefully. For the cloud business, we are pleased that our previous hard work paid off with a robust revenue growth during the third quarter. We are now more confident in the potential of our cloud business, as we continue to expand the coverage as well as content of our cloud services to more Chinese homes going forward."
For earnings history and earnings-related data on China Digital TV (STV) click here.
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