Controversial mobile internet provider NQ Mobile Inc (ADR) (NYSE:NQ) released an investor relations update on Thursday, October 30th. The firm’s update touched on a number of subjects, including the company’s recent acquisitions of Showself and Yipai, and a Q&A covering questions regarding the ongoing restatement of NQ Mobile’s financial reports for the first three quarters of this year.
Of note, NQ Mobile did file a revised 2013 annual report (SEC Form 20-F) last week.
Recent Showself and Yipai acquisitions
The IR update emphasized that NQ mobile anticipated both of its most recent acquisitions to contribute significantly to the bottom line almost immediately. Showself is a unique real-time online entertainment social platform. It allows for the creation and management of a variety of groups representing diverse interests such as singing, disk jockeying, live talk shows, dating, a slew of games and much more. Showself’s busimness model includes deals with TV stations, modeling and casting agencies, advertising agencies, media groups and mobile gaming companies to create unique online and offline events that engage users and drive traffic. The report also notes that Showself already has several million participants already as well as a profitable and expanding revenue base.
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NQ Mobile’s other recent acquisition Yipai offers PC and mobile intelligent interactive advertising services. With proprietary user modeling and image recognition technology, Yipai searches for potentially interesting merchandise and services provided by advertisers. Once it finds the match, Yipai displays the advertisement in the form of a floating layer on top of the picture or around the related contents. Yipai’s primary business is currently business-to-business (B to B) , but a business-to-consumer (B to C) offering is under development and is a big part of the future plans. Yipai offers its customers significantly higher click through rates with this new form of image-based search advertising relative to traditional online advertisements. Through the firrst three quarters of this year, its daily traffic volume at Yipai topped 10 million and current advertisers include VIPShop and Taobao.
NQ Mobile 2014 quarterly results
In response to the Q&A question “When are you going to report your quarterly results for 2014?”, the IR update noted: “Now that we have completed the annual report for 2013 on Form 20-F filed with the SEC, our Finance Department is working closely and diligently with our auditors to prepare the financials for the first, second and third quarters of 2014. We will report all three quarters at the same time. We will announce the date and time of the earnings release and conference call formally by press release as soon as the exact date is determined.”