Fang's Stock Jumps 5% on Income, Revenue Improvement in Q2
Shares in Fang Holdings Ltd. (NYSE: SFUN) were trading up 5 percent, at $2.29 per share, on Friday afternoon, after the company announced that revenue from its leads generation services has more than tripled from a year ago.
The Beijing-based online real estate services provider, formally known as SouFun Holdings Ltd., said in a statement on Friday that its revenue in second quarter reached $67.6 million, up 7 percent year-over-year. Net income was $4.2 million, or 5 cents per American depositary share, in contrast to a net loss of $53.5 million, or 60 cents per ADS, a year ago.
Fang, which provides e-commerce listing and marketing services through its website, as well as other services to real estate and home furnishing, attributed the improvement in the second quarter to the revenue growth in its marketing services and leads generation services. Revenue from marketing services reached $32.5 million in the second quarter, up 19 percent year-over-year. The company's leads generation services revenue propelled to $10.8 million, up 290 percent a year ago.
Jian Liu, the chief executive officer of Fang, noted the success and the future of its leads generation services.
"In terms of leads generation, in the past we were more facing institutions but now we have also opened the platform to individual agents as well," Liu said in a conference call on Friday.
"We expect this to increase our client base significantly and we are confident we will increase the number of paying clients in the future," he added.
Looking ahead, though Fang did not provide guidance for its future earnings, it said it expects to turn profitable this year.
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