July 28 -- Leshi Internet Information and Technology (Letv.com) (300104), a provider of Internet-based video services, posted an 87.24 percent year-on-year rise in first half 2011 net profit to 58.4 million yuan, reports China Business News, citing a company filing. Revenue increased 118.79 percent to 223 million yuan.

Copyright distribution income surged 369.1 percent year-on-year to 117 million yuan as domestic video websites are now required to buy genuine videos.

Zhang Chaoyang, chairman of Sohu.com, said the cost of purchasing each episode of popular TV serials had surged 100-fold to between 800,000 yuan and one million yuan at present.

Letv.com said it will step up the purchase online copyrights in 2011, of which exclusive online copyrights of popular TV serials will account for more than 70 percent, while it will offer more than 95 percent of the non-exclusive online copyrights.

It has already obtained 30 percent of the exclusive online copyrights of new TV serials for 2012-13.

According to Letv.com, the number of monthly paying users has exceeded 600,000 while revenue from online advertising increased 45.57 percent year-on-year in the first half.

Leshi said it had given up on the online gaming business which had recorded no income year-to-date.

Meanwhile, operating cost increased 146.32 percent year-on-year, while accounts receivable doubled to 145 million yuan.

Source:Capitalvue