Obama warns against 'ramping up' in Gaza crisis

BANGKOK (AP) — President Barack Obama said Sunday that an incursion by Israel's forces into the Gaza Strip could deepen its own death toll, cautioning against an escalation even as he defended Israel's right to defend itself. To Palestinians, Obama warned the latest crisis could crush peace hopes for years.

"Israel has every right to expect that it does not have missiles fired into its territory," Obama said at the start of a three-nation tour in Asia.

"If that can be accomplished without a ramping up of military activity in Gaza, that's preferable," he said. "It's not just preferable for the people of Gaza. It's also preferable for Israelis, because if Israeli troops are in Gaza, they're much more at risk of incurring fatalities or being wounded."

Obama's comments came as Israel's campaign against Hamas militants in Gaza blasted into its fifth day. Israel is at a crossroads of whether to launch a ground invasion or pursue Egyptian-led truce efforts. Obama sought to defend the U.S. ally's rights while pushing for a halt in the violence.

From Thailand, Obama also defended his decision to go to Myanmar, also known as Burma. Obama will be the first U.S. president to visit the country, which is moving from a brutal reign toward democracy, but still holds political prisoners and is living with ethnic violence.

"This is not an endorsement of the Burmese government," Obama said. "This is an acknowledgement that there is a process underway inside that country that even a year and a half, two years ago, nobody foresaw."

Obama said he was also guided by Myanmar's longtime democracy advocate, Aung Sung Suu Kyi, who visited him recently at the White House.

"I'm not somebody who thinks the United States should stand on the sidelines and not get its hands dirty when there's an opportunity for us to encourage the better impulses inside a country," he said.

Change in a country can happen quickly, Obama said, if people believe "their voices are heard."

The president will also visit Cambodia during his Asia trip, which began Sunday in Thailand. He was here as a sign of U.S. commitment to a region his administration deems vital to U.S. economic growth, but the shadows of another Mideast conflict hung over his journey.

Israeli Prime Minister Benjamin Netanyahu declared Sunday that Israel was prepared to significantly expand its military operation in Gaza. Obama has been lobbying Netanyahu along with the leaders of Egypt and Turkey to try to halt the crisis — including stopping rocket strikes on Israel.

He said Israel was justly responding to "an ever escalating number of missiles that were landing not just in Israeli territory, but in areas that are populated. And there's no country on earth that would tolerate missiles raining down on its citizens from outside its borders."

Obama said Palestinians will have no chance to pursue their own state and a lasting peace with Israel as long as rockets are fired into Israel. He said he hoped for a clearer process over the next 48 hours — showing how much the Mideast conflict had intruded on his diplomatic mission to Asia.

Still, Obama got a red-carpet welcome, a dose of sightseeing and an official dinner of authentic Thai food.

In a news conference with Prime Minister Yingluck Shinawatra, both leaders spoke of deepening ties of trade, security and democracy. Obama's praised Thailand for being a supporter of democracy in Myanmar, the once-pariah state that is rapidly reforming. He said he appreciated the Thai prime minister's insights into Myanmar during their private meeting Sunday.

On a steamy day, Obama began with a visit to the Wat Pho Royal Monastery, a cultural must-see in Bangkok. In stocking feet, the president and U.S. Secretary of State Hillary Rodham Clinton walked around a golden statue of a sitting Buddha. The complex is a sprawling display of buildings with colorful spires, gardens and waterfalls.

After his time at the temple, Obama paid a courtesy call to the ailing, 84-year-old U.S.-born King Bhumibol Adulyadej in his hospital quarters. The king, the longest serving living monarch, was born in Cambridge, Mass., and studied in Europe.

The centerpiece of the Asia trip comes Monday when Obama travels to Myanmar.

Obama aides see Myanmar as not only a success story but also as a signal to other countries that the U.S. will reward democratic behavior.

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NJ Gov. Christie makes cameo appearance on 'SNL'

NEW YORK (AP) — New Jersey Gov. Chris Christie can't get enough of "Saturday Night Live."

One day after ducking questions about Twinkies-maker Hostess shutting down to avoid giving comedians fodder and saying he's on "SNL" enough, Christie made a cameo appearance on "Weekend Update."

The tough-talking governor poked fun at his notoriously short temper and the familiar blue fleece jacket that he has worn while touring the state following Superstorm Sandy.

Christie thanked the Red Cross and first responders. He also thanked his wife, who he said has put up with "a husband who has smelled like a wet fleece for the last three weeks."

He took a swipe at New Jersey officials who failed to follow his orders before Sandy, refusing to thank "any of the stupid mayors" who ignored his evacuation orders, calling them "idiots."

Christie closed by quoting from the Bruce Springsteen song "Atlantic City."

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

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Israel, Egypt talk Gaza ceasefire as strikes widen

GAZA CITY, Gaza Strip (AP) — An Israeli envoy held talks with Egyptian officials Sunday on a ceasefire in his country's offensive on Gaza as Israel widened the range of its targets, striking more than a dozen homes of Hamas militants and two media officials. Seven civilians were killed, including five children, in the conflict's highest one-day civilian toll yet, according to security officials and witnesses.

Upon arrival at Cairo's international airport, the Israeli official was whisked away directly from the tarmac and taken to talks with Egyptian authorities, Egyptian security officials said, speaking on condition of anonymity because they were not authorized to talk to the press. They did not identify the Israeli official.

Egypt has been leading international efforts to broker a truce since Israel launched its offensive five days earlier aimed at stopping Gaza rocket attacks. But Israel and Gaza's militant Hamas rulers remain far apart on any terms.

Hamas is linking a truce deal to a complete lifting of the border blockade on Gaza imposed since Islamists seized the territory by force. Hamas also seeks Israeli guarantees to halt targeted killings of its leaders and military commanders. Israeli officials reject such demands. They say they are not interested in a "timeout," and want firm guarantees that the rocket fire will finally end. Past ceasefires have been short lived.

As the offensive moved forward, Israel found itself at a crossroads — on the cusp of launching a ground offensive into Gaza to strike an even tougher blow against Hamas, or pursuing Egyptian-led truce efforts.

"The Israeli military is prepared to significantly expand the operation," Israeli Prime Minister Benjamin Netanyahu declared at the start of the weekly Cabinet meeting.

At the same time, Gaza militants continued their barrage of rocket fire, firing more than two dozen at Israel on Sunday, including a longer-distance projectile that targeted Tel Aviv for a fourth straight day. One rocket damaged a home in the southern city of Ashkelon, punching a hole in the ceiling. Israel's "Iron Dome" rocket-defense system shot down seven rockets, including the one aimed at Tel Aviv, police spokesman Mickey Rosenfeld said. Eight Israelis were wounded by shrapnel Sunday, one of them moderately.

Expanding targets to strike the homes of suspected commanders appeared to mark a new and risky phase of the operation, given the likelihood of civilian casualties in the densely populated territory of 1.5 million Palestinians.

New strikes on Sunday leveled homes in Gaza, burying residents under the rubble as rescuers frantically dug for survivors. In all, 57 Palestinians have been killed, including 24 civilians, and more than 400 civilians have been wounded, medics say.

Israel launched the operation last Wednesday by assassinating Hamas' military chief and carrying out dozens of airstrikes on rocket launchers and weapons storage sites in response to mounting rocket attacks. Over the weekend, the operation began to target Hamas government installations as well, including the offices of its prime minister.

Israel blames Hamas for civilian casualties, saying the group uses residential areas for cover and puts civilians in danger. It also accuses Hamas of intentionally targeting Israeli civilians with its rocket fire. Three Israelis, all civilians, have died in the fighting, and rocket attacks on Israeli cities continued interrupted Sunday.

A strike Sunday on a three-story home in the northern Gaza town of Beit Lahiya killed a 3-year-old girl and a 5-year-old boy from the same family. Hamas security officials said three missiles struck the house, owned by a family that has members who are involved in militants' rocket squads. It was not known if any militants were in or near the house at the time of the strike.

A strike in Gaza City flattened the home of a family known for its support for Hamas, killing three women and a fourth civilian, according to Gaza health official Ashraf al-Kidra.

Another strike in the city brought down a home near a Hamas police station in the Tufah neighborhood. Rescue workers pulled out the body of a dead woman, along with several surviving members of her family.

In the Shati refugee camp near Gaza City, a missile struck the car of a Hamas militant outside his home, killing him and an 11-year-old girl passing by at the time, al-Kidra said.

Hamas security officials said most of the other houses of Hamas field operatives targeted Sunday were empty, causing no injuries

Israel's chief military spokesman. Brig. Gen. Yoav Mordechai, said the military had been ordered to go after Hamas commanders Sunday, in addition to rocket squads, in "more targeted, more surgical and more deadly" attacks.

"I imagine in the next few hours, we will see ongoing targeted attacks on gunmen and Hamas commanders," Mordechai told Army Radio. "More targeted, more surgical and more deadly."

The strikes on the media centers hit two high-rise buildings, damaging the top floor offices of the Hamas TV station, Al Aqsa, and a Lebanese-based broadcaster, Al Quds TV, seen as sympathetic to the Islamists. Six Palestinian journalists were wounded, including one who lost a leg, a Gaza press association said. Foreign broadcasters, including British, German and Italian TV outlets, also had offices in the high-rises.

Two missiles made a direct hit on Al Aqsa TV's 15th floor offices, said Bassem Madhoun, an employee of Dubai TV, which has offices in the same building.

Building windows were blown out and glass shards and debris were scattered on the street below. Some of the journalists who had been inside the building at the time took cover in the entrance hallway.

Lt. Col. Avital Leibovich, an Israeli military spokeswoman, said the strikes targeted Hamas communications equipment on the buildings' rooftops. She accused the group of using journalists as "human shields," and urged journalists to stay clear of Hamas bases and facilities.

Leibovich said the military has identified "hundreds" of additional targets as it pressed forward. She acknowledged that civilians were in danger, but said that Gaza militant groups bore the blame.

"One of the strategies of Hamas, not only Hamas, but Islamic Jihad as well, is locating large amounts of munitions underneath civilian homes. Many times this is the reason for this big damage or collateral damage," she said.

The repeated militant rocket fire on Tel Aviv and Friday's attack toward Jerusalem have significantly escalated the hostilities by widening the militants' rocket range and putting 3.5 million Israelis, or half the country's population, within reach. The attempt to strike Jerusalem also has symbolic resonance because both Israel and the Palestinians claim the holy city for a capital.

Israeli radio stations repeatedly interrupted their broadcasts to air "Code Red" alerts warning of impending rocket strikes.

The southern city of Beersheba was unusually quiet Sunday, with streets empty and schools closed. The city's main shopping mall was nearly empty, but still the busiest it has been since the fighting began, shopkeepers said.

One shopper used an application on her iPhone that tracks air-raid sirens across the country. The mall, like other public places, has shelters for shoppers to run into.

With fighting showing no signs of slowing, international attempts to broker a ceasefire continued.

Nabil Shaath, an aide to Palestinian President Mahmoud Abbas who was in Cairo, confirmed that the Israeli envoy had arrived in Egypt for talks, saying there are "serious attempts to reach a ceasefire." There was no immediate Israeli confirmation.

Hamas' prime minister, Ismail Haniyeh, spoke to Egyptian President Mohammed Morsi. He told the Egyptian leader he supports such efforts, provided Hamas receives "guarantees that will prevent any future aggression" by Israel, his office said in a statement.

Morsi over the weekend hosted talks with Hamas' supreme leader, as well as leaders from Hamas allies Turkey and Qatar. He also held contacts with Western leaders.

French Foreign Minister Laurent Fabius visited Israel on Sunday to offer his country's help toward forging an "immediate ceasefire," the French government said.

Meeting with Fabius, Israeli Foreign Minister Avigdor Lieberman thanked him for "France's efforts to prevent casualties" but said "the moment that all the terror organizations announce a ceasefire, we can consider all the ideas that French foreign minister and other friends are raising."

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Aron Heller contributed reporting from Beersheba.

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Hindu extremist leader Bal Thackeray dies in India

MUMBAI, India (AP) — Bal Thackeray, a Hindu extremist leader linked to waves of mob violence against Muslims and migrant workers in India, died Saturday after an illness of several weeks. He was 86.

Jalil Parkar, a doctor who treated him, said the politician had gone into cardio-respiratory arrest "which we tried to revive (him from), but we were unable to revive."

Thackeray, a one-time cartoonist, formed the Shiv Sena — which means Shiva's Army — in 1966 in Maharashtra. The political party's main aim has been to keep people who are not from Maharashtra out of the state and stem the spread of Islam and western values.

Thackeray's Sena is among the most xenophobic of India's Hindu right-wing political parties and held power in Mumbai from 1995 to 2000. His supporters often called him Hindu Hriday Samrat or emperor of Hindu hearts.

As news of his death was announced outside his residence in Mumbai, India's financial capital, many of his supporters sobbed and burst into tears.

Thousands of his followers from across his power base in the western state of Maharashtra began gathering outside his home in the state capital as the news of his ill health spread earlier this week. Mumbai police were on high alert because of the violent history of the group.

In 1992, members of Hindu right-wing groups, including the Sena and the Bharatiya Janata Party, were instrumental in destroying a 16th century mosque in north India that they said was the birthplace of the Hindu god Rama, and Thackeray was blamed for the violence and rioting that followed. In Mumbai alone, nearly 1,000 people were killed.

Sanjay Raut, a spokesman for Thackeray's party, appealed to his supporters to maintain peace.

Prime Minister Manmohan Singh spoke to Thackeray's son Udhav and offered his condolences. He appealed for "calm and sobriety during this period of loss and mourning."

Lal Krishna Advani, a top leader of Hindu nationalist Bharatiya Janata Party, said Thackeray was uncompromising in his patriotism. "He possessed remarkable qualities of leadership."

Throughout his political career Thackeray was a powerful, rabble-rousing orator who routinely sanctioned the use of violence to propagate his political views. He was arrested at least twice for his for inflammatory speeches and writing.

His extreme regional and religious parochialism led him to advocate Hindu suicide bombers and planting bombs in Muslim neighborhoods to "protect the nation and all Hindus."

His followers often attacked and rampaged through the offices of media houses that he claimed were anti-Maharashtrian and anti-Hindu and threatened to dig up cricket pitches ahead of matches between largely Hindu India and its Muslim-majority neighbor Pakistan.

Even though the Shiv Sena's political grip over Mumbai — its longtime power base — has been waning over the last decade, it still commands tens of thousands of violent followers.

The slight, bespectacled leader often appeared in front of his supporters seated on a silver throne-like chair, a gift from party workers.

In the early 1990s he led a successful campaign to drop what he called the colonially tainted name Bombay — a Portuguese derivation of "beautiful bay" — and replace it with Mumbai, after the local Marathi language name for a Hindu goddess. The city is the capital of Maharashtra state.

His supporters continued to sporadically threaten violence against places and institutions that held on to the old name like the Bombay Stock Exchange, the Bombay High Court, the elite Bombay Scottish School and countless restaurants, shops and offices.

More recently his followers campaigned against the celebration of Valentine's Day in several Indian cities. They attacked shops and restaurants that allowed young couples to mark the day.

Through the early 2000s, Thackeray had appeared to be grooming his nephew Raj Thackeray as his political successor ahead of his own son Uddhav but in 2006 the infighting between the cousins led to Raj breaking away from the Sena. He formed the Maharashtra Reconstruction Party, which held onto the Sena's political planks of regional and religious chauvinism interspersed with occasional violence.

Thackeray is survived by two sons. His body will be kept in a park on Sunday to allow people to pay their last respects before his cremation.

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Lady Gaga tweets some racy images before concert

BUENOS AIRES, Argentina (AP) — Lady Gaga's tweets were getting a lot of attention ahead of her Buenos Aires concert Friday night.

The Grammy-winning entertainer has more than 30 million followers on Twitter and that's where she shared a link this week to a short video showing her doing a striptease and fooling around in a bathtub with two other women.

She told her followers that it's a "surprise for you, almost ready for you to TASTE."

Then, in between concerts in Brazil and Argentina, she posted a picture Thursday on her Twitter page showing her wallowing in her underwear and impossibly high heels on top of the remains of what appears to be a strawberry shortcake.

"The real CAKE isn't HAVING what you want, it's DOING what you want," she tweeted.

Lady Gaga wore decidedly unglamorous baggy jeans and a blouse outside her Buenos Aires hotel Thursday as three burly bodyguards kept her fans at bay. Another pre-concert media event where she was supposed to be given "guest of honor" status by the city government Friday afternoon was cancelled.

After Argentina, she is scheduled to perform in Santiago, Chile; Lima, Peru; and Asuncion, Paraguay, before taking her "Born This Way Ball" tour to Africa, Europe and North America.

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

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Israel launches scores of airstrikes into Gaza

GAZA CITY, Gaza Strip (AP) — Israel bombarded the Hamas-ruled Gaza Strip with nearly 200 airstrikes early Saturday, the military said, widening a blistering assault on Gaza rocket operations to include the prime minister's headquarters, a police compound and a vast network of smuggling tunnels.

The new attacks, which Gaza officials say left 10 dead, followed an unprecedented rocket strike aimed at the contested holy city of Jerusalem that raised the stakes in Israel's violent confrontation with Palestinian militants and extended the battlefield.

Israeli aircraft also kept pounding their original targets, the militants' weapons storage facilities and underground rocket launching sites. They also went after rocket squads more aggressively. The military has called up thousands of reservists and massed troops, tanks and other armored vehicles along the border with Gaza, signaling a ground invasion could be imminent.

Militants, undaunted by the heavy damage the Israeli attacks have inflicted, have unleashed some 500 rockets against the Jewish state, including new, longer-range weapons turned for the first time this week against Jerusalem and the Tel Aviv heartland. Following those attacks, the military deployed an Iron Dome rocket defense battery in central Israel on Saturday. The system, devised precisely to deflect the Gaza rocket threat, was deployed two months earlier than planned, the Defense Ministry said.

Ten people, including eight militants, were killed and dozens were wounded in the various attacks early Saturday, Gaza health official Ashraf al-Kidra said. In all, 40 Palestinians including 13 civilians and three Israeli civilians have been killed since the Israeli operation began.

The violence has widened the instability gripping the Mideast. At the same time, revolts against entrenched regional regimes have opened up new possibilities for Hamas. Islamists across the Mideast have been strengthened, bringing newfound recognition to Hamas, shunned by the international community because of its refusal to recognize Israel and renounce violence.

A high-level Tunisian delegation, led by Foreign Minister Rafik Abdessalem, drove that point home with a visit to Gaza on Saturday. The foreign minister's first stop was the still-smoldering ruins of the three-story office building of Gaza's prime minister, Ismail Haniyeh of Hamas.

"Israel has to understand that there is an international law and it has to respect the international law to stop the aggression against the Palestinian people," Abdessalem told The Associated Press during a tour of Gaza's main hospital, Shifa, later Saturday. He said his country was doing whatever it can to promote a cease-fire, but did not elaborate.

It was the first official Tunisian visit since Hamas's violent 2007 takeover of the territory. Egypt's prime minister visited Friday and a Moroccan delegation is due on Sunday, following a landmark visit by Qatar's leader last month that implied political recognition.

Israel had been incrementally expanding its operation beyond military targets but before dawn on Saturday it ramped that up dramatically, hitting Hamas symbols of power. Israeli defense officials, speaking on condition of anonymity to discuss confidential decisions, said military chief Lt. Gen. Benny Gantz personally ordered the scope of the airstrikes to be increased.

Haniyeh's three-story office building was flattened by an airstrike that blew out windows in neighboring homes. He was not inside the building at the time.

The building's security chief said Hamas scored points despite Israel's military superiority.

"Hamas responded to the Zionist aggression and hit them in the depth of their land," he said, referring to rockets aimed Friday at Jerusalem and Tel Aviv.

Another airstrike brought down the three-story home of a Hamas commander in the Jebaliya refugee camp near Gaza City, critically wounding him and injuring other residents of the building, medics said.

Missiles smashed into two small security facilities and the massive Hamas police headquarters in Gaza City, setting off a huge blaze that engulfed nearby houses and civilian cars parked outside, the Interior Ministry reported. No one was inside the buildings.

The Interior Ministry said a government compound was also hit while devout Muslims streamed to the area for early morning prayers, although it did not report any casualties from that attack.

Air attacks knocked out five electricity transformers, cutting off power to more than 400,000 people in southern Gaza, according to the Gaza electricity distribution company. People switched on backup generators for limited electrical supplies.

In southern Gaza, aircraft went after underground tunnels militants use to smuggle in weapons and other contraband from Egypt, residents reported. A huge explosion in the area sent buildings shuddering in the Egyptian city of El-Arish, 45 kilometers (30 miles) away, an Associated Press correspondent there reported.

The Israeli military said more than 800 targets have been struck since the operation began.

The widened scope of targets brings the scale of fighting closer to that of the war the two groups waged four years ago. Hamas was badly bruised during that conflict, but has since restocked its arsenal with more and better weapons, and has been under pressure from smaller, more militant groups to prove its commitment to fighting Israel.

The attack aimed at Jerusalem on Friday and two strikes on metropolitan Tel Aviv showcased the militants' new capabilities, including a locally made rocket that appears to have taken Israeli defense officials by surprise. Both areas had remained outside the gunmen's reach before.

Just a few years ago, Palestinian rockets were limited to crude devices manufactured in Gaza. But in recent years, Israeli officials say, Hamas and other armed groups have smuggled in sophisticated, longer-range rockets from Iran and Libya.

Israeli leaders have threatened to widen the operation even further if the rocket fire doesn't halt. Foreign Minister Avigdor Lieberman said options included the possible assassination of Haniyeh, the prime minister.

Israeli Prime Minister Benjamin Netanyahu met in emergency session with Cabinet ministers Friday and they approved mobilizing up to 75,000 reservists, more than doubling the number authorized earlier this week. That would be the largest call-up in a decade. At a parking lot in central Israel, uniformed reservists waited to board buses. One prayed, covered in a Jewish prayer shawl.

Lt. Col. Avital Leibovich, a military spokeswoman, said 16,000 reservists were called to duty on Friday and others could soon follow.

She said no decision had been made on a ground offensive but all options are on the table.

President Barack Obama spoke separately to Israeli and Egyptian leaders Friday as the violence in Gaza intensified. In a conversation with Israeli Prime Minister Benjamin Netanyahu, he reiterated U.S. support for Israel's right to self-defense. To Egyptian President Mohammed Morsi, he praised Egypt's efforts to ease regional tensions.

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Teibel reported from Jerusalem. Associated Press writers Karin Laub in Gaza City and Matthew Daly in Washington contributed reporting.

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Afghan official says land mine kills 17 civilians

KABUL, Afghanistan (AP) — Afghan officials say 17 civilians have been killed by a roadside bomb in western Afghanistan.

Abdul Rahman Zhuwandai, a spokesman for Farah province, says the civilians killed were on a bus traveling on Friday to a wedding in Pusht Rod district.

He says most of the victims were women and children.

He says at least 10 others were wounded in the afternoon explosion.

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Sina banks on Weibo but weak fourth quarter guidance spooks investors

(Reuters) – Chinese Internet company Sina Corp said its fourth quarter will be hit by a softer economy and posted weaker-than-expected sales guidance, despite a stronger revenue contribution from its hot microblogging platform Weibo.

Shares in Sina fell 7 percent after it forecast adjusted net revenue of $ 132 million to $ 136 million in the current quarter, below analysts’ expectations for $ 151.9 million according to Thomson Reuters I/B/E/S.

Sina, which makes most of its revenue from online advertising both on its website and Weibo, is facing stiff headwinds as firms slash advertising budgets due to a worsening economic outlook.

“We are going to see a weaker quarter for advertising overall in the fourth quarter,” said Charles Chao, Sina’s chief executive on an earnings conference call. The firm forecast Q4 advertising revenues would rise 6-8 percent from a year earlier.

Chao said Weibo contributed 16 percent to total revenue in the third quarter, up from 10 percent in the previous quarter. The platform, which is very popular with white-collar workers, university students and celebrities, had 424 million registered users at the end of the quarter, up from 368 million three months earlier.

Advertisers, like luxury brands, that traditionally don’t advertise with Sina’s main portal website flocked to Weibo to test out the social platform, Chao said.

There were about 230,000 Weibo advertising accounts in the quarter, and Sina was in the process of rolling out a online payment system and new Weibo advertising product to increase monetization at the end of the fourth quarter.

“We believe a ‘promoted feed advertising’ will become one of the major forms of (Weibo) advertising going forward,” said Chao, adding that the product will be effective also on mobile platforms, allowing Sina to tap into Weibo’s growth on mobile devices.

Q3 PROFIT BEAT

For the third quarter, Sina’s net profit was $ 9.9 million compared with a loss of $ 336.3 million a year earlier, and slighly ahead of analysts’ expectations of $ 7.5 million.

Sina’s quarterly advertising revenue rose 19 percent to $ 120.6 million, while non-advertising revenue rose 9 percent to $ 31.8 million.

The company started monetizing Weibo by offering special services to business accounts and selling VIP memberships to regular users earlier this year.

For its mobile-value-added-services business, Sina said it expects revenue to continue to decline due to new regulatory policies.

The company was also affected by a spat between Japan and China over islands in the East China Sea as Japanese automakers cut back on advertising in China. Chao said he expected the impact to last into the fourth quarter.

“It did have an impact on our third quarter as well as our fourth quarter. We did see cancellations from customers related to Japanese automobiles in the month of September and it impacted the fourth quarter (too),” Chao said.

Sina shares fell 6.74 percent to $ 49.52 in extended trading. They closed at $ 53.10 on the Nasdaq on Thursday.

(Additional reporting by Aurindom Mukherjee in Bangalore; Editing by Sriraj Kalluvila and Richard Pullin)

Internet News Headlines – Yahoo! News

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