Question-and-Answer Session
Operator
Our first question is from Mike Olson - Piper Jaffray.
Mike Olson - Piper Jaffray
One quick question on the WBS side. You talked about a rebound in Q3. Is there any reason to point to why you would expect a rebound in Q3? I'm just wondering if there are certain things that you're seeing thus far in the quarter or anything specific you can point to as to why it might rebound from Q2?
Colin Sung
Traditionally, Q2 is the low peak of the whole year and Q3 traditionally usually is a peak season amongst the other quarters. In addition we have a partnership with the media channel. We're going to have more close partnerships in the summertime and so far, the indication we have in the month of July, we believe we will have a sequential rebound compared to Q2.
Mike Olson - Piper Jaffray
One other quick question on the ad services business. What was the biggest driver for the sequential growth to 1.6 million in Q2 and what part of the ad services business do you think will see the largest growth in the next year? What will be the biggest vertical of growth there?
Colin Sung
The growth mainly contributed from the Q1 to Q2 is a few of the promotional events we have. One is with the ending of the [inaudible] partnership, which we started in Q1, which is ending early Q2. The second promotional event we had is with the [Skoda] which is a promotional event related to certain sports events we held in Shanghai provinces. The third one is the one we started last year in Q4 of 2006, a partnership we announced earlier related to the Fangdong Satellite Station related to the Channel Vision. Channel Vision was the first season in 2006. This year is the second season of this program, Channel Vision, and the season started in Q2 and we do see a return in promotional or advertising revenue related to that production. That program will be ending in Q3 of this year.
Michael Li
Adding to Colin's point, I think that our strategy on cross-media and also our partnership is starting to pay off. We started to build a solid cross-media platform including the traditional TV media and also the partnership with ECC China Cash, targeted advertising. I think this strategy will start to pay off starting from this quarter.
- To read the full transcript on Seeking Alpha, click here »
