Boston, MA 08/28/2014 (wallstreetpr) – Leading Internet television company in China, Youku Tudou Inc (ADR) (NYSE:YOKU) disclosed that its board of directors have given approval for a fresh repurchase of shares. The company’s action comes nearly ten days after it had announced its financial results for the second quarter.
Share Buyback
The company had announced that the fresh approval from the board has been obtained for buying back its own shares worth a maximum of $300 million. However, it had not given any time limit or timeframe. It expects to utilize its own funds available from current cash balance, which includes cash generated from its operations, for the purpose of share repurchase program.
Youku Tudou Inc (ADR) (NYSE:YOKU) said that the planned share buyback would be done either from the open market at market prices or through negotiated deals off the market as and when the opportune time comes in apart from market conditions. The company had indicated that the share buyback would be done in conformity with the U.S. Securities Exchange Act of 1934 and rule 10B5-1 apart from Rule 10b-18.
Analysts’ Comments
JG Capital analyst Henro Guo said that the idea of Youku was to make investors happy following the fall in stock price, Bloomberg reported. Additionally, the analyst told that Alibaba’s strong results had only indicated the enormous potential of e-commerce business in China thus allowing more operators to enjoy expansion.
Available Cash
At the end of the second quarter, the company said that it had cash, cash equivalents, short-term and restricted investments of $1.6 billion as of June.
Youku Tudou Inc (ADR) (NYSE:YOKU) said that it suffered a net loss of $26.5 million, wider than a net loss of $16.9 million in the year earlier quarter. On an adjusted basis too, net loss widened to $12.2 million from $7.2 million in the year earlier period. GAAP and Non-GAAP earnings per share flat at 14 cents a share and 14 cents a share respectively. Its net revenues advanced 27% to $154.5 million.
