Xunlei Announces Unaudited Financial Results for the First Quarter Ended March 31, 2018

Xunlei Limited (NASDAQ:XNET), a leading cloud based acceleration technology company in China announced its unaudited financial results for the first quarter ended March 31, 2018.

The company said that the total revenues were US$78.8 million which represents an increase of 117.9 percent from the corresponding period of last year. The company said that the cloud computing and other internet value added services revenues were US$48.1 million which represents an increase of 316.4 percent.

As quoted in the press release:

• Subscription revenues were US$23.4 million, representing an increase of 12.3% from the corresponding period of last year and an increase of 3.0% from the previous quarter.
• Online advertising revenues (consisting primarily of revenues from mobile advertising) were US$7.3 million, representing an increase of 92.2% from the corresponding period of last year and a decrease of 6.8% from the previous quarter.

Recent Developments:

• Extended cloud services from CDN domain to IaaS domain through our new cloud platform StellarCloud and the services can be exchanged for with the LinkToken;
• Launched a high-performance blockchain infrastructure ThunderChain capable of conducting millions of transactions per second (TPS);
• Started co-operation with third-party partners to develop ThunderChain applications; and
• Received a new national CDN license that allows us to offer CDN solutions from selected cities to mainland China.

Mr. Lei Chen, Chief Executive Officer of Xunlei, stated: “We are very pleased to report that we recorded a net income of US$8.0 million for the first quarter of 2018 following a profitable previous quarter. We achieved solid performance in the first quarter despite the seasonality impact as a result of the Chinese New Year holidays. Going forward, we will continue to invest in shared computing technology and expand our service portfolio. We are also very excited about the prospects of building a Xunlei blockchain ecosystem. And finally, we will expand into overseas markets to seek new growth opportunities. I look forward to reporting to you our progress in the coming days.”

Total revenues were US$78.8 million, representing an increase of 117.9% on a year-over-year basis, and a decrease of 4.4% on a sequential basis. The increase in total revenues on a year-over-year basis was mainly attributable to the growth of our cloud computing, live streaming and mobile advertising businesses. The slight decrease in total revenues on a sequential basis was mainly due to a technology solution service income generated from a previous service cooperation between Xiaomi and us in an amount of US$5.8 million. If such US$5.8 million service income had not been recognized in the fourth quarter of 2017, the total revenues in the first quarter of 2018 would have increased 2.8% sequentially.

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