SkyMobi goes 'majority smartphone', but sees Q3 2014 sales down 22% to $19 million

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SkyMobi goes 'majority smartphone', but sees Q3 2014 sales down 22% to $19 million

Chinese mobile app store SkyMobi (NASDAQ:MOBI) has announced its unaudited Q3 results, for the three months ending 31 December 2013.

Total revenues were $19 million, down 22 percent year-on-year, and down 1 percent quarter-on-quarter

Revenues from smartphones were up 66 percent compared to six months ago, however, to $10.7 million.

During Q3, smartphone accounted for 56 percent of all revenue. This is the first time the company has received a majority of its revenue from smartphones.

Net profit was $800,000, up 26 percent year-on-year.

Transition strategy

Breaking out the numbers behind these financials, Sky-mobi said its Maopoa app store had received over 763 million user visits and over 128 million downloads during the quarter.

"We are pleased that our fiscal third quarter 2014 revenues exceeded the high end of our prior guidance by approximately 15 percent due to our stronger than expected growth in our smartphone business," said CEO Michael Tao Song.

He explained the reason for this success was the migration of the community of its Maopao app store from feature phones to smartphones.

"Our strategic cooperation with handset manufacturers and telecom carriers, especially by partnering with telecom carriers' physical stores where we pre-install the apps, content and offerings, has been a key driver of our strategy and will continue to be a significant entry barrier for our competitors in the fast-growth, low-cost smartphone market," he added.

"By adding over 380,000 new users per day, we now have over 110 million users on the Maopao smartphone platform."

Sky-mobi ended the quarter with cash and equivalents worth $30 million.

[source: Sky-mobi]

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