WB-SW (09898) extended its decline, falling more than 5% in early trading before paring losses to 4.51% at HK$54.05, with turnover reaching HK$11.47 million.

According to the company's second-quarter earnings released recently, total revenue came in at US$454 million, up 2% year-over-year, while advertising revenue reached US$381 million, down 1% from the same period last year. Adjusted operating profit for the quarter stood at US$125 million.

On the user front, as of the end of the second quarter, the platform recorded 561 million monthly active users and 254 million daily active users.

A research report from GF Securities noted that advertising revenue continues to face pressure due to macroeconomic conditions and intensifying competition. By sector, the automobile industry is expected to sustain its growth momentum, while internet applications are projected to remain flat or see slight gains. However, the mobile phone sector is adopting a cautious spending approach, with market reaction to Apple's September launch event still to be observed. For e-commerce and local services, the high comparison base from last year's food delivery price war, combined with reduced competitive intensity this year, has led to lower advertising spending year-over-year. The report suggests that weakness in the mobile phone and local services sectors could weigh on third-quarter advertising performance, with ad revenue expected to decline 7% year-over-year on a constant currency basis and 3% in US dollar terms.