Tag Archives: Loss

Roku forecasts surprise loss for holiday quarter, shares fall
November 8, 2018 12:01 am|Comments (0)

(Reuters) – Roku Inc forecast a surprise holiday-quarter loss and missed third-quarter revenue estimates for its high margin video streaming platform, sending its shares down nearly 13 percent in after-market trading on Wednesday.

FILE PHOTO A video sign displays the logo for Roku Inc, a Fox-backed video streaming firm, in Times Square after the company’s IPO at the Nasdaq Market in New York, U.S., September 28, 2017. REUTERS/Brendan McDermid/File Photo

The outlook overshadowed third-quarter revenue, which beat analysts’ estimates, and a loss that was smaller than expected.

Revenue from Roku’s streaming platform is a closely watched metric and the company has pinned hopes on the segment, which generates profit margins well above 70 percent.

Roku reported revenue of $ 100.1 million from the streaming platform unit, missing estimates of $ 103.2 million, according to FactSet data.

DA Davidson analyst Tom Forte said the pullback in shares was also a reflection of expectations being “too high” for the company’s third-quarter results.

STRATEGY CHANGE

Roku’s streaming devices have been facing intense competition from the likes of Apple TV and Google Chromecast.

This led the company to tap other revenue sources, including licensing its technology to television makers and earning a share of the advertising revenue from media companies on its platform.

The company is investing more on content for its recently launched Roku channel and is expanding it to more geographies, Chief Executive Officer Anthony Wood told Reuters.

“We added several news providers in anticipation of the mid-term elections and it was one of our best news days ever.”

Net loss attributable to shareholders narrowed to $ 9.5 million, or 9 cents per share, in the third quarter ended Sept. 30, from $ 46.2 million, or $ 8.79 per share, a year earlier. (bit.ly/2qz97eX)

On an adjusted basis, the company lost 9 cents per share. Revenue rose 39 percent to $ 173.4 million.

Analysts on average had expected a loss of 12 cents per share on revenue of $ 169.1 million, according to IBES data from Refinitiv.

The company’s shares were down 12.6 percent at $ 51.41 after the bell.

Reporting by Munsif Vengattil in Bengaluru and Ken Li in New York; Editing by Maju Samuel and Shounak Dasgupta

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China's ZTE posts 1.1 billion first-half loss on impact from U.S. supplier ban
August 30, 2018 12:00 pm|Comments (0)

HONG KONG (Reuters) – ZTE Corp (000063.SZ) (0763.HK) reported a first-half net loss of 7.8 billion yuan ($ 1.1 billion) on Thursday, weighed down by a ban on U.S. firms selling parts to the Chinese telecom equipment maker that forced it to cease operations for three months.

FILE PHOTO: The company name of ZTE is seen outside the ZTE R&D building in Shenzhen, China April 27, 2016. REUTERS/Bobby Yip/File Photo

The result compared with the 7 billion to 9 billion yuan net loss estimate disclosed last month, and the 2.3 billion yuan profit booked in the same period a year earlier.

Operating revenue in the first half fell 27.0 percent to 39.4 billion yuan.

In June, the network equipment and smartphone maker paid the United States $ 1.4 billion in penalties in a deal to have the supplier ban lifted. The ban, imposed in April in relation to sanction violations, crippled ZTE and became a source of friction in Sino-U.S. trade talks.

($ 1 = 6.8300 Chinese yuan renminbi)

Reporting by Sijia Jiang and Twinnie Siu; Editing by Christopher Cushing and Edmund Blair

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Amazon forays into Australia with small loss
August 3, 2018 12:00 pm|Comments (0)

SYDNEY (Reuters) – Online retail giant Amazon.com Inc, whose entry into Australia last year rattled established bricks-and-mortar retailers, posted a modest loss in its earliest days in the country, corporate filings show.

FILE PHOTO: Amazon boxes are seen stacked for delivery in the Manhattan borough of New York City,U.S., January 29, 2016. REUTERS/Mike Segar/File Photo

Amazon’s foray into Australia was met with fevered attention from investors and a steep selldown in traditional retail stocks.

The U.S. company launched its website on Dec. 5, though it ran preparatory operations through the year, racking up a modest loss of almost A$ 9 million ($ 6.6 million).

In the Christmas trading weeks from the launch to Dec. 31, it turned over A$ 6.3 million in direct sales versus total Australian retail sales of A$ 26.3 billion that month.

These figures, however, are unlikely to be indicative of the future performance of a company that reported losses and roller-coaster results for years, but is now the second-biggest company in the world and closely watched on Wall Street.

The Australian trading period was too short for meaningful analysis, said Evan Lucas, chief market strategist at fund manager InvestSmart.

“Amazon is not the kind of company that accepts failure – they have a longer term goal.”

Amazon hit logistical snafus in Australia’s vast interior and handed eBay Inc – market leader in Australia – some victory after a move last month to block Australians from shopping on its foreign websites drew customer backlash.

A spokesman for Amazon declined to comment on the filing and directed Reuters to previous commentary about record Australian sales during a promotion in July without quantifying them.

The filing was lodged in April but the results were not reported at the time. They were first reported on Friday by the Sydney Morning Herald newspaper.

Last week, Amazon forecast strong fall sales for its overall operations and posted a $ 2.5 billion quarterly profit that was double Wall Street targets on the back of its younger businesses – cloud computing and advertising.

($ 1 = 1.3569 Australian dollars)

Reporting by Tom Westbrook; Editing by Sayantani Ghosh and Manolo Serapio Jr.

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China's Leshi Internet flags $1.8 billion loss for 2017, citing LeEco cash crunch
January 31, 2018 6:10 am|Comments (0)

HONG KONG (Reuters) – Chinese video-streaming firm Leshi Internet Information & Technology said it expects a net loss of 11.6 billion yuan ($ 1.83 billion) for 2017, citing a cash crunch at embattled technology conglomerate LeEco that hurt its revenues.

Leshi had reported a profit of 554.8 million yuan in 2016.

It was once the main listed unit of LeEco which was founded by Jia Yueting. Last year, property developer Sunac China became Leshi’s second-largest shareholder and Jia subsequently resigned as chairman and CEO from the company but remains its largest shareholder.

Leshi is trying to recover debt owed by Jia. It said last week it is seeking equity stakes in the car businesses of Jia for debt owed by him and his companies amounting to as much as 7.5 billion yuan ($ 1.17 billion).

Leshi flagged the expected loss for 2017 in a statement to the Shenzhen stock exchange on Tuesday evening.

The announcement sent Leshi’s shares plunging by the daily limit of 10 percent on Wednesday, the sixth consecutive day they have tumbled the maximum allowed since resuming trading a week ago following a 9-month suspension.

(This version of the story corrects fifth paragraph to show announcement was made to Shenzhen stock exchange, not Hong Kong stock exchange)

Reporting by Sijia Jiang; Editing by Anne Marie Roantree and Muralikumar Anantharaman

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