Fang Expects Decrease In Revenue But Profitable For Whole Year 2017

(RTTNews) - Fang Holdings Limited (SFUN) said that it expects a decrease in its top line revenue but will expect to be profitable for the whole year 2017.

In Friday's pre-market trade, SFUN is currently trading at $2.55 down $0.11 or 4.14%.

Net loss attributable to Fang's shareholders was $10.4 million in the fourth quarter of 2016, compared to net loss of $38.8 million in the corresponding period of 2015. Loss per fully-diluted ordinary share and ADS were $0.11 and $0.02 in the fourth quarter of 2016, compared to loss of $0.44 and $0.09, respectively, in the corresponding period of 2015.

Fang reported total revenues of $174.7 million in the fourth quarter of 2016, a 42% decrease from $300.7 million in the corresponding period of 2015, primarily due to the decline in e-commerce and marketing services.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.01 per share and revenues of $187.61 million for the quarter. Analysts' estimates typically exclude special items.

Revenue from e-commerce services was $89.9 million in the fourth quarter of 2016, a decrease of 48% from $173.9 million in the corresponding period of 2015. The decline was primarily due to the decreased transaction volume impacted by the tightening regulations, as well as the strategic change to have scaled down on rental and home furnishing business.

Revenue from marketing services was $48.0 million in the fourth quarter of 2016, a decrease of 42% from $83.0 million in the corresponding period of 2015, primarily due to less demand from property developers for online advertising under the regulatory change.

Revenue from listing services was $38.6 million in the fourth quarter of 2016, an increase of 74.0% from $22.3 million in the corresponding period of 2015, driven by the increased number of paying members and unit price.