Youku released 2010 annual financial report: everything so good
News on March 1st: Today, Youku(NYSE:YOKU) announced its fourth quarter and fiscal year 2010 ended by December 31st. Victor Koo, CEO of Youku and Dele Liu, Youku’s CFO said in the earnings conference call that Youku’s fourth quarter direct access traffic has increased to 58% comparing with the time when it was trying to be listed. But the traffic from searching engines decreased dramaticly.
Dele Liu said that before being listed, Youku.com’s access traffic mainly distributed as follows: 50% from direct access, 30% from searching engines and the rest from index websites or social networking websites. But due to the competition reasons, the traffic from searching engines was on a declining curve in the fourth quarter, while the direct access traffic increased up to 58%.
Victor Koo believes that it resulted from many reasons. Firstly, becoming a listed company helped to earn public awareness which made more users to visit Youku directly. Secondly, the relatively comprehensive content provided by Youku attracted more users. Thirdly, Baidu has aggressively used its own searching sources to draw vedio visitors’ attention to its own websites.
Youku.com’s fourth quarter financial report showed a net revenue of 152.5 million RMB (23.1 million USD), representing an increase of 183% from the corresponding period in 2009; its net loss is 37.7 million RMB (5.7 million USD), representing an 18% decrease from the corresponding period in 2009.