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revenues were US $92.3 million marking an increase of 119.3 percent from US $42.1 million in
2015. Increase in membership revenues were driven by increase in paying membership accounts.
Number of paying membership accounts on 58.com during the first quarter of 2016 was around
1034,000 which marks an increase of 54.6 percent from 669,000 in Q1, 2015. Some paying
members purchase membership services from more than one 58.com platform contributing to
revenues of these platforms. Online marketing services revenues were US $129.7 million
marking an increase of 192.8 percent from US $44.3 million in Q1, 2015. Increase was driven by
rising revenues.
Operating expenses equalled US $258 million, indicating an increase of 85.7 percent from US
$138.9 million in Q1, 2015. Increase was the result of rising operating expenses associated with
consolidation of finances. Operating expenses linked to 58.com's core classified business grew to
support enhanced traffic and revenues. Sales and marketing expenses in Q1 of 2016 was US
$201.8 million, an increase of 76.8% from US $114.2 million during Q1, 2015.
Meeting sales and marketing expenses, advertising expenses comprised US $104.8 million and
US $61.9 million during Q1, 2016 and 2015. This marks an increase resulting from
consolidations.
Conclusion
58.com Inc. is therefore a strong BUY and investors are advised to go in for this Chinese firm's
shares if they want stable profits.
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