Friday, May 23, 2008

Chinese Internet business is built around the Olympic Games

The Chinese have decided to make a broadcast of the Olympic Games on the Internet. Earn, at least in part to recoup their costs as a multi-for the Games themselves, and to create all the necessary infrastructure for them. The second objective - to give impetus to further development of Internet technologies in Celestial. The point is that, although China and demonstrates the impressive pace of informatization of society, hundreds of millions of Chinese - mostly in western and south-western regions of the country - are still deprived of such benefits telecommunications civilization as mobile communications and Internet.

In general, the case came from a truly Chinese magnitude. First, the monopoly of lighting the Olympic Games was given to Chinese portal That immediately produced its own shares and went on stock exchanges. It is not yet started the actual Olympics, successfully making on resource production and advertising, as well as in numerous online games, where he became the centre. attracted the attention of local and global Internet market after the published results of the first quarter. Results of financial performance web portal surpassed analysts' expectations as well as its own forecast of the company. According to the company, Olympic results in 2008 will likely also be well above projections. Earnings per share Internet portal in the first quarter grew at 433% to 64 cents. This is far above analysts' forecasts, waiting 27 cents. According to the financial services, net profit per share increased over the same period last year from 12 to 55 cents. This growth exceeded the maximum forecast the company at 19 cents. Analysts interviewed by Thomson Reuters, predicted that the increase of the indicator is 37 cents. The course shares after reporting on the outcome of the quarter grew by 14.5% to $ 70.81. Thus, has become a very attractive target for investment. The past quarter has become an Internet portal for the third consecutive period during which the company demonstrated a stable, almost geometric, growth in sales and profits. In expect that second quarter earnings range from $ 93 million to $ 96 million The forecasts of market analysts look much more modest - about $ 77.9 million

Analysts trying to convince management portal. The Director-General Charles Zhang during a conversation with analysts said: "We believe that these results were made possible only because of our long-term strategy on the Chinese Internet space". In addition, Zhang once again mentioned the exclusive portal rights to coverage of the Olympic Games, which start in Beijing on August 8. These rights include copyright monopoly on advertising related to the Games. I have said that Charles Zhang and the growth in popularity of computer games in the last quarter. He echoed the investment bank managing director of Pali Research Tien Hou: "The main engine of growth are the games that are now under increasing popularity. And it has not yet peaked. Even if the market there is no shortage of games, that is lack of good games ". released to the market online game Tian Long Ba Bu in the wake of vigorous growth in popularity of such products in the country. According to the Bank of Pali Research, in 2007, producing revenue online games in China increased by 60% - to $ 1.66 billion Through games revenues from advertising companies do not podrosla at 570% compared with the quarter in 2007 I A in the current quarter is projected specialists portal revenues directions online games range from $ 43 million to $ 45 million Advertising, in turn, brought portal $ 34.8 million, which is 36% higher than a year earlier. The main focus of the advertising business to date are the banners, proceeds from the placement of which grew by 41% - to $ 33.2 million report on the results of the quarter led to a growth rate of shares not only the resource itself, but its competitors - the portal and manufacturer of computer games Shanda Interactive Entertainment. Its shares climbed to 5.6% and 5% respectively.

Generally in China today, there is considerable imbalance of Technology. Notorious "Chinese miracle" is concentrated in the wealthy and technologically developed coastal areas of east and south. That there are flourishing Beijing, Shanghai, Hong Kong and Macau. But there is another China. More than 800 million Chinese live in poor agricultural areas west, away from the sea. Yet there is still a beggar and tormented permanent insurrection… Here's Tibet and the Chinese authorities decided to use the Olympics to "smartness" informatization level of western countries to the east. Top Olympic competitions to the west of China is scheduled to pave the lot Fibre cables, give subsidies to local Internet providers, conduct internet in schools. And the planned expansion of coverage for mobile communication operators. In short, after the Olympics we seem to see a very different IT-China.

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