China's Xunlei Q3 revenue rises 12.9%, posts loss
XNET•Xunlei's third-quarter revenue rose 12.9% year over year to $101.3 million, while adjusted net loss was $16.4 million. The company completed a $13.8 million share buyback and approved a new $20 million program over 12 months.
1. Revenue and loss
Xunlei said third-quarter revenue increased 12.9% year over year to $101.3 million, driven by demand for subscription services and growth in overseas audio live-streaming. Adjusted net loss was $16.4 million, reversing a profit a year earlier; adjusted loss per ADS was $0.26.
2. Margins and outlook
Gross margin declined as live-streaming made up a greater share of revenue and revenue-sharing expenses rose. Higher administrative, research and development, and marketing expenses contributed to an operating loss. Xunlei expects softer near-term momentum amid intensifying competition and evolving market conditions, and said it will prioritize selective spending and sustainable monetization initiatives.
3. Share repurchases
The company completed a $13.8 million share buyback and its board approved a new $20 million repurchase program to run over 12 months.
