Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line Andy Patel with Visions Investments.
Andy Patel - Visions Investments
My question is the revenue that is generated from the wireless was about $230,000 while you have spent almost like $3 million in advertising. How do you justify this?
Sam Sun
Hello, Operator?
Operator
Hello, sir? Can you hear me?
Andy Patel - Visions Investments
Yes, I just asked a question. My question is on the wireless, you spent $3 million with a revenue of $250,000, with a net loss of almost $2.8 million. How do you justify this? Hello?
Sam Sun
Hello, Operator?
Operator
Sir, can you hear me?
Andy Patel - Visions Investments
Yeah, I just --
Sam Sun
Yeah, I can hear you. Please open the line for Q&A, please.
Operator
Sir, you already have a question being asked.
Sam Sun
I haven’t heard anything.
Operator
Andy, please re-ask your question.
Andy Patel - Visions Investments
Okay, my question is for the wireless side, you have spent almost $3 million with a net revenue of $280,000, with a net loss of almost $2.7 million. How do you justify that?
Sam Sun
Well, we believe the wireless Internet strategy is the right strategy for KongZhong to achieve long-term future growth. That’s the strategy KongZhong has taken, so in Q4, since we officially started the NBA wireless -- the official NBA wireless website, so we spent more marketing and advertising efforts on that. That’s the reason the Q4 spending on the wireless Internet business is higher than Q3 and previous quarters.
And actually, in the beginning of 2007, we already planned to spend $10 million to $15 million in 2007, a similar level as we plan today for 2008. So for the whole year 2007, we spent $10.64 million relating to our wireless Internet site, which is consistent with what we planned at the beginning of 2007.
Nick Yang
This is Nick. I am the President of the company. There is a little more I want to add. If you look at the Internet portal today, the PC Internet portal today, whether it’s Yahoo! or whether it’s Sina or Sohu in China, they have lost more 50 or in some cases more than $100 million in net loss before they turn profit. And right now, if you look at their profit number of Yahoo!, of course, it’s huge off the advertising business on the PC Internet. And if you look at Sina’s financial numbers, they are making millions and tens of millions of dollars off of the PC Internet advertising business.
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