China's Baidu revenues gets boost from advertisers

Baidu's earnings for the second quarter were boosted by increased spending from advertising customers

China’s largest search engine Baidu posted strong earnings for the second quarter, driven by growing traffic and increased spending by advertising customers.

Net profits for the quarter ended June 30 were US$252.6 million, an increase of 95 percent from the same quarter last year.

Revenues were $528.4 million, up from 78.4 percent from the same period last year. The company previously forecast revenues reaching $493 million to $504 million.

It expects revenues in the current quarter to range between $611.1 million to $626.6 million, a year-on-year increase of up to 79.5 percent.

Baidu, a Chinese company founded in 2000, has a 76 percent share of Internet search engine revenues in China, according to Beijing-based research firm Analysys International. Google, which closed its China-based search engine last year after years of disputes with the country’s Internet censors, is a distant second with a 19 percent share, according to the estimates.

Baidu’s online marketing, which drives the company’s revenues, saw a boost in the second quarter from advertising paid by China’s group buying sites, according to company CEO Robin Li. The country now has more than 4,500 group buying sites, which operate like the U.S.’s Groupon and offer discounts to users.

Baidu has been busy in the past month announcing new partnerships. The company will now start paying three major record companies to offer licensed music downloads.

The company has declined to say how much it will pay the music companies. But on Tuesday, Baidu’s chief financial officer Jennifer Li said during an earnings call that the agreements to pay the music companies would not “significantly affect the cost picture” for the search giant.

The company also made a partnership with Microsoft to use its Bing search engine to power the English-language search results on Baidu. Starting last week, Baidu began displaying the Bing search results for English terms.

Baidu has also started offering downloads to a public beta of its new Internet browser. The company hopes to use it to further increase its search traffic, said Baidu CEO Robin Li during Tuesday’s earnings call.

Robin Li also said Baidu is working on a “number of mobile phone related services and systems,” but declined to offer details. He also reiterated that the company is looking to expand to overseas markets by launching a new platform that will offer multiple languages simultaneously. He declined to offer specifics.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internetbusiness issuesGooglesearch enginesfinancial resultsBaidu.com

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

Michael Kan

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?