CHINA'S second-largest online video site Tudou said its fourth-quarter losses narrowed on booming online advertising income.

The income rose 70 percent annually to 166.5 million yuan (US$26.5 million) and sales last year totaled 512.2 million yuan, it said in a statement yesterday. Net loss in the three months ended December 31 was 148.9 million yuan, down from 263.7 million yuan in the same quarter in 2010.

"We are focused on enhancing user experience through further integrating our video platform with China's leading social networking platforms and Tudou is set to benefit from the big trend as social media is moving to the mobile Internet end," said Gary Wang, chairman and chief executive officer of Tudou.