Reduced operating expenses narrowed portal-operator Sina.com's net loss by a quarter-on-quarter 6.8 per cent to US$4.93 million in the three months to December 31. About US$420,000 of the loss came from 24.3 per cent-held associate Sun Television Cybernetworks (Sun TV), whose co-chairman Yang Lan swapped the stake last September for 10 per cent of Sina. Despite a 79.1 per cent jump in non-advertising revenues, to US$1.64 million, prospects for advertising revenues - accounting for 75.7 per cent of total revenues - remain clouded. Chief executive Daniel Mao Daolin said total revenues this quarter were expected to be flat on the December quarter, and a dip in advertising revenues would be offset by a strong rise in non-advertising revenues. He blamed the expected fall in advertising revenues on concerns the economic recovery in the United States may be slower than expected combined with a quiet advertising market during the Lunar New Year holiday. But he believed the fast pace of growth in non-advertising revenues would continue. In the December quarter advertising revenues were US$5.13 million, almost flat on the US$5.14 million in the preceding quarter. About 70 per cent to 80 per cent of growth in electronic commerce revenues in the December quarter came from the provision of mobile-phone short-messaging services (SMS), Mr Mao said. Non-advertising revenues accounted for 24.3 per cent of the quarter's revenues. Mr Mao would not disclose Sina's SMS subscriber base. Rival Sohu.com's non-advertising revenues accounted for 39 per cent of total revenues in the same quarter, when it experienced a 14 per cent quarter on quarter revenue growth to US$4.1 million. Its net loss narrowed 8 per cent to US$2.5 million. Under revenue-sharing arrangements with China Mobile and China Unicom, Sina is entitled to 30 per cent of SMS revenues while the operators take the rest. Sina has no further plans for staff-cuts, after laying off 14 per cent of its workforce in September last year. It has 444 employees. In November, Sina said it would jointly develop a broadband cross-media platform with Sun TV to transform Sina.com into a fee-charging multimedia site.