NASDAQ-listed Sina.com, China’s leading internet news portal, saw decreased performance in Q1 2006, mainly due to a major drop in SMS value added services earnings.   Net revenue reached USD 46.7 mln, a 2% increase over the USD 45.8 mln it earned in the same quarter the previous year, but 10% less than Q4 2005’s USD 52 mln.   Net advertising revenue hit USD 22.2 mln, an increase of 33% over the same period in 2005 but down 11% quarter-on-quarter. Net advertising revenue from Q1 accounted for some 47% of its net revenue, compared to 36% in 2005’s Q1.   Non-advertising net revenue reached USD 24.5 mln, a 16% decline year-on-year and 9% quarter-on-quarter. Net income in mobile value-added services earned USD 22.7 mln, falling 14% on the year and 9% over the last quarter. The 20% year-on-year drop of SMS services to USD 16.2 mln serves as the major culprit of a dismal performance in the mobile sector.   Sina’s 2006 Q1 gross margin was 61%, down six percentage points over the same period in 2005, and five percentage points quarter-on-quarter. At 63% for Q1 2006, gross advertising margins also dropped a few percentage points, compared to 65% in the same quarter in 2005 and 69% the previous quarter.   Net income reached USD 7 mln, compared to Q1 2005’s USD 10.3 mln and last quarter’s USD 13.8 mln.   Sina projects Q2 net revenue at anywhere between USD 47.5 mln to USD 49.5 mln, with net advertising revenue between USD 26 mln and USD 27 mln, and net non-advertising revenue between USD 21.5 mln and USD 22.5 mln.    Changes in senior management also took place. CEO Wang Yan resigned effective May 8, and has been replaced by current Sina President Charles Chao. Wang will serve as Vice Chairman on Sina’s Board of Directors.