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Bitauto Says Revenue Jumped 26%, Exceeds Guidance

Binwei Wang 2019-05-31 09:49 AM

The stock of Bitauto Holdings Ltd. (NYSE: BITA) rose 15 cents to $10.64 per share Thursday as the Beijing-based company, a provider of internet content and marketing services, reported a 26 percent increase in revenue for the first quarter, beating its own guidance.

For the three months through March, the company, which operates as Yixin, said its net income reached $13.8 million, or 6 cents per American depositary share, compared with a net loss of $43 million in the corresponding period a year ago. Revenue was $407.5 million in the first quarter.

The improved results were driven by the growth in Bitauto's transaction services, advertising, and subscription, as well as digital marketing solutions businesses.

Costs of revenue for the quarter were $158.8 million, up 30 percent from the same period in 2018. The increase in funding costs was due to higher expenses for Yixin's self-operated financing business, commissions associated with Yixin's loan facilitation services, and costs associated with sales of automobiles, according to the report.

Ming Xu, the chief financial officer of Bitauto, said in the statement, "Despite soft sales in the automobile industry, our results for the first quarter of 2019 maintained a steady growth trajectory, with strong performances from both our advertising and subscription business and transaction services business.”

He added, “We expect the growth of our user base and brand value will further solidify our leading industry position, reduce our customer acquisition costs and enhance our margins. We remain optimistic about Yixin's margin outlook for the full year as it further grows its total financed transaction volume."

For the second quarter, the company said it expects to generate revenue in the range of $402.3 million to $417.2 million, representing a 5 percent to 9 percent increase from the same period a year before.

Andy Zhang, the chief executive officer of Bitauto, said, "Looking forward, we will remain dedicated to executing on our core business strategies to build Bitauto into China's top online automobile media and transaction services platform."