Autohome Inc. authorized a new $400 million share repurchase program after reporting a 31.9% year-over-year decline in second-quarter revenue to RMB1.20 billion, with operating profit down 56.2% to RMB130.0 million. The company completed its prior $200 million buyback, which repurchased 10.63 million ADSs, and had already spent $43.6 million under the new authorization as of August 14. Revenue declines were steepest in online marketplace and other services, down 52.1% to RMB357.3 million, and lead-generation services, down 23.5% to RMB560.4 million, while media services stayed nearly flat at RMB280.4 million. Net income attributable to Autohome fell 40.4% to RMB247.8 million, and adjusted net income decreased 41.7% to RMB277.3 million. The company ended June with $2.68 billion in cash and short-term investments, exceeding its roughly $2.5 billion market value, but the buyback's effectiveness depends on whether business erosion moderates.
Autohome IncAuthorizes $400M buyback but Q2 revenue falls 32%, operating profit down 56.2%; mixed impact.
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