World Cup helps Baidu score record Q2

The company declined to comment on rumors it is following Google with a mobile OS

Internet searches surged during the World Cup soccer tournament, helping Baidu.com score its best quarter ever in terms of revenue and net profit.

China's largest Internet search provider said revenue surged 74 percent from last year to a record US$282.3 million, while net profit climbed 119 percent to $123.5 million.

Baidu credited healthy growth in its customer base and improved efficiency for the strong performance, but also noted the surge in Internet search related to the World Cup. The first game of the competition kicked off on June 11 and the final was played July 11.

"This quarter's strong performance also underscores the vast Internet market opportunities for us and the growing appreciation for search engine marketing in China," said Robin Li, Baidu's chairman and CEO, in a statement.

Analysts have said that Baidu also gained from Google's decision last March to re-route China-based searches through Hong Kong to avoid censorship laws in China. Some advertisers dropped Google and turned to Baidu.

Investors sent shares of Baidu stock up 3.2 percent, or $2.33, to $75.64 in after-market trading on the Nasdaq Stock Market, after the company reported its results.

During a conference call, one analyst asked Baidu about its plans for a mobile phone operating system to rival Google's Android. News sources in China have reported that Baidu is working on a mobile OS, but the company declined to comment specifically on any project.

"Over the past few years, we've seen faster growth in mobile search versus PC search but it's still a very small percentage of our search traffic," Li said on the call. He noted that most people in China don't have 3G mobile phones, making Internet search less popular than PC search, but that "going forward, we think the cell phone will take over and mobile traffic will take over."

"We have a number of very exciting projects going on internally and obviously we are excited about the mobile Internet going forward," he said.

The company expects its third quarter to be even better than its record-breaking second quarter, forecasting revenue of $324.4 million.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesGoogleFIFA World Cup 2010FIFA World Cup South AfricaBaidu.comfinancial resultssearch engines

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?