Event Brief of Q2 2008 SINA Corporation Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

PARTICIPANTS

. Cathy Peng, SINA Corp, IR Manager . Charles Chao, SINA Corp, President and CEO . Herman Yu, SINA Corp, CFO . Jason Brueschke, Citigroup, Analyst . Richard Ji, Morgan Stanley, Analyst . Wallace Cheung, Credit Suisse, Analyst . Eddie Leung, Merrill Lynch, Analyst . Ming Zhao, SIG, Analyst . Paul Wu, Lehman Brothers, Analyst . Vivian Li, Piper Jaffray, Analyst . Dick Wei, JP Morgan, Analyst . Leah Hao, Goldman Sachs, Analyst . Elinor Leung, CLSA, Analyst

OVERVIEW

SINA reported 2Q08 total revenues of $91.3m, non-GAAP net income of $26.2m, and non-GAAP diluted EPS of $0.43. Co. expects 3Q08 total revenues of $100-104m.

FINANCIAL DATA

A. Key Data From Call 1. 2Q08 total revenues = $91.3m. 2. 2Q08 non-GAAP net income (excluding stock-based compensation and other items) = $26.2m. 3. 2Q08 non-GAAP operating income = $23.7m. 4. 2Q08 non-GAAP diluted EPS = $0.43. 5. 2Q08 non-GAAP GM = 63%. 6. 2Q08 non-GAAP OpEx = $33.4m. 7. 2Q08 CapEx = approx. $7.9m. 8. As of 30/06/08, cash, cash equivalents, and marketable securities = $540.9m. 9. 3Q08 expected total revenues = $100-104m.

PRESENTATION SUMMARY

S1. 2Q08 Business Review (C.C.) 1. Highlights: 1. Reported another strong qtr. with record revenues and earnings. 2. Growth of online advertising and mobile value-added service continued to accelerate in 2Q08. 3. Total revenues grew by 53% YoverY to $91.3m. 1. Advertising revenues grew by 58% YoverY and 36% QoverQ to $64.9m. 4. Non-GAAP net income totaled $26.2m, 62% increase from 2Q07 and 33% increase from 1Q08. 2. Advertising: 1. Despite aggressive marketing campaigns by major competitors,

SINA continued to maintain leading position in brand information among Internet portals in China according to various independent research. 1. Further enhanced its position as leading online advertising platform in China by recording highest quarterly growth rate for advertising in last five years. 2. Continued to see accelerated growth for advertising in China market. 1. YoverY advertising revenues for China grew by 59%. 2. Combined advertising revenues from automobile, finance, and real estate grew by 92% YoverY. 1. Accounted for 58% of 2Q08 total advertising revenues.

3. Real estate, grew 159% YoverY. 4. According to newly published semi-annual China Internet report by CNNIC, Chinese Internet users reached 253m by June 2008-end making China the country with the largest Internet population. 3. Rapid growth of China's Internet population significantly increased penetration of Internet media in China, especially urban areas. 1. Despite slowdown in Chinese economy and decline in [stock] and housing markets, Co. sees continuing shift of marketing dollars from traditional media to online. 4. More than 81% of Chinese Internet users get their news from the Internet. 1. Almost 10% higher than previous survey and higher than most other countries. 5. Media influence was further demonstrated in coverage of recent massive earthquake in Sichuan Province in China. 1. Provided up-to-minute news and information relating to the earthquake and rescue effort, connected people, and mobilized nation. 2. As a result, traffic increased significantly and brand image was further enhanced. 6. 08/08/08 is the opening ceremony of Beijing Olympics Games. 1. SINA is fully prepared to: 1. Present best online media coverage for event to Chinese Internet users. 2. Provide state-of-the-art marketing platform for customers. 7. Ten years ago, SINA made its name in China by successfully covering French FIFA World Cup through Internet. 1. Since then, every major sports event coverage helped SINA create traffic records and take its brand to the next level.

8. In 3Q08, expects to: 1. Incur significantly higher content costs for Olympic Games. 2. Spend extra marketing dollars to promote its brand. 1. This will impact margins negatively. 9. Believes these are right investments to make as these investments will bring in new users and customers, which will help build foundation for long-term growth. 3. Mobile: 1. 13% growth QoverQ and 44% growth YoverY. 2. Continued diversification of product lines and marketing channels. 1. MMS, WAP, and SMS were key products that drove growth in 2Q08.

S2. 2Q08 Financial Review (H.Y.) 1. Revenues: 1. Total revenues were $91.3m, growth of 53% YoverY and 28% sequentially. 2. Online advertising revenues, excluding search, were $64.9m,

growth of 58% YoverY and 36% QoverQ. 1. Advertising revenues from China grew 59% YoverY to $64.3m. 2. Revenues per advertiser in China increased 36% YoverY. 3. Number of customers in China grew 17% YoverY. 4. Top three customers segments continued to show strong growth momentum. 1. Automobile grew 77% YoverY. 2. Financial services grew 91% YoverY on top of threefold increase last year. 3. Real estate advertising revenues, up 139% YoverY and 46% QoverQ. 5. Online advertising revenues accounted for 71% of total revenues vs. 69% in 2Q07. 3. Mobile business grew 44% YoverY and 13% QoverQ to $24.5m. 1. SMS and IVR collectively, representing 53% of total MVAS revenues, grew 8% QoverQ. 2. Revenues from 2.5G products, includes MMS, WAP, and KJAVA increased 19% sequentially. 2. Other Results: 1. Non-GAAP GM was 63%, same as 2Q07 and higher than 60% margin in 1Q08. 1. Non-GAAP advertising GM was 65% vs. 63% in 2Q07 and 62% in 1Q08. 1. Improvement was due to strong growth of advertising revenues while inserting prudent decision-making in purchase of online content and other cost items. 2. Non-GAAP GM for MVAS business was 55% vs. 61% in 2Q07 and 56% in 1Q08. 1. Gradual decline in mobile margin can be mostly attributed to increasing revenue share to channel partners.

2. Non-GAAP OpEx was $33.4m, up 47% YoverY and 29% sequentially,

primarily driven by: 1. Higher marketing spending.

2. To lesser extent, higher engineering and sales related payroll and other personnel expenses. 3. Non-GAAP operating income was $23.7m, up 58% YoverY and 40% QoverQ. 4. Non-GAAP operating margin was 26%, improving 1 percentage point from 2Q07.

1. 1 point margin improvement allowed non-GAAP operating income to grow 5 percentage points faster than total revenues YoverY.

5. Income tax provision was $4.2m assuming effective PRC income

tax rate of 16%. 1. Currently expects to have similar effective tax rate for rest of 2008. 6. Non-GAAP net income, excluding stock-based compensation and other items, was $26.2m. 1. Increase of 62% from 2Q07 and 33% from 1Q08. 7. Non-GAAP net margin was …