(Yicai Global) May 11 -- Revenue at Chinese social media giant Weibo climbed 42 percent in the first quarter due to the low base of comparison a year earlier and resurging demand for advertising services.

Net revenue was USD459 million in the three months ended March 31, the Beijing-based company said in an unaudited financial report released yesterday. It predicted a 25 percent to 30 percent gain in revenue this quarter.

Demand for advertising has recovered strongly, Chief Executive Wang Gaofei said on an earnings conference call. Advertising revenue also jumped 42 percent to USD390 million, Weibo’s earnings report showed. 

But monthly active users fell 4 percent to 530 million during the quarter, and the number of daily active users fell 5 percent to 230 million. 

Shares of Weibo [NASDAQ: WB] closed 1.6 percent higher at USD48.67 each in New York yesterday, after earlier sinking by as much as 8 percent.

“We are trying to get access to those low frequency users and especially improving their frequency from external sources,” Wang said, adding that the company seeks to improve community atmosphere and boost investment in videos. 

Wang also responded to a question about China’s so-called fan economy. To crack down on abuses such as artificial inflation of internet traffic data, cyber violence and other issues the country’s internet regulators have been enhancing supervision of fan groups.

Wang said the fan economy is increasingly popular around the world and has many positive aspects, but it is necessary to manage it.

Editor: Tom Litting