SouFun Holdings Q2 Profit Rises; Cuts 2014 Revenue Guidance - Quick Facts

(RTTNews) - SouFun Holdings Limited (SFUN), the real estate Internet portal in China, said that its net income attributable to shareholders was $68.2 million for the second quarter of 2014, a 23.2% increase from $55.4 million for the corresponding period in 2013. Earnings per ADS was $0.15 for the second quarter, a 15.4% increase from $0.13 for the corresponding period in 2013.

Quarterly total revenues were $168.2 million, representing an increase of 16.7% from $144.1 million for the corresponding period in 2013, primarily driven by the growth in marketing services.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.14 per share and revenues of $173.52 million for the quarter. Analysts' estimates typically exclude special items.

SouFun adjusted its revenue guidance for 2014 from between $780.0 million and $796.0 million, or a year-over-year increase of between 22.5% and 25%, to between $727.0 million and $739.0 million, or a year-over-year increase of between 14% and 16%.

SouFun said it adjusted its revenue guidance for 2014 in light of the slowdown in the real estate market in China, its reduction in fees it charges for listing services for the remainder of 2014, and longer time for new businesses to contribute significantly to revenue growth. This forecast reflects SouFun's current and preliminary view, which is subject to change and may not reflect actual results. Wall Street expects revenues of $741.98 million for fiscal 2014.

In addition, SouFun announced that its Board has approved and declared a cash dividend of $1.00 per share on SouFun's ordinary shares. Five SouFun's American depositary shares ("ADS") represent one ordinary share. The cash dividend will be paid by August 29, 2014 to shareholders of record as of the close of business on August 18, 2014.

SouFun also announced that its Board has approved changes to the directors and management, effective immediately.

Jeff Xuesong Leng resigned from the Board. Sol Trujillo was appointed an independent director to the Board.Richard Jiangong Dai resigned from the President and Chief Executive Officer as he has enrolled in Stanford University and is studying full-time in the U.S. Dai will remain as a director of the Board. Vincent Tianquan Mo, SouFun's founder and Exective Chairman of the Board, is appointed the Chief Executive Officer.