Weibo Q2 profit slips on weak gaming demand

Weibo

19/08/2026 10:12

Overview
China social media platform's Q2 revenue rose 2% yr/yr, driven by value-added services growth
Adjusted EPS for Q2 fell yr/yr as net income declined
Advertising revenue declined 1% yr/yr due to weaker handset and online game demand

Outlook
Weibo did not provide specific financial guidance for the upcoming quarter or full year

Result Drivers
ADVERTISING DEMAND MIX - Co said overall advertising revenue fell due to weaker demand from handset and online game sectors, partly offset by gains in internet service and automobile sectors and favorable currency impact
VALUE-ADDED SERVICES - Co said value-added services revenue rose 19% yr/yr, driven by one-off ticket proceeds from offline activities, growth in membership service, and favorable foreign exchange impact
INCREASED COSTS - Co said total costs and expenses rose 12% yr/yr, mainly due to higher ad production costs and marketing expenses

Company press release: ID:nPn3vYGLLa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$453.80 mln
 
Q2 Adjusted EPS
 
$0.38
 
Q2 EPS
 
$0.26
 
Q2 Adjusted Net Income
 
$102.70 mln
 
Q2 Net Income
 
$67.40 mln
 
Q2 Operating Income
 
$118.90 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for Weibo Corp is HK$75.00, about 28.1% above its August 19 closing price of HK$58.55
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads
Aug 19 - China short video platform Kuaishou Q2 profit hit by higher costs, revenue inches up
Aug 18 - China's Baidu Q2 revenue falls amid pressure on online marketing business
Aug 18 - China's iQIYI Q2 net loss widens on higher income tax expense

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)