Baidu's quarterly net profit up 34.1%

Written By Unknown on Jumat, 25 Juli 2014 | 21.43

SAN FRANCISCO: Baidu, China's biggest internet search company, blew past Wall Street's targets with a 34.1% jump in quarterly net profit, helped by a surge in mobile revenue.

It shares climbed 7.3% in after-hours trading to $219.20, from a close of $204.27 on the Nasdaq.

On Thursday, the company often likened to a Chinese Google said it now gets 30% of its revenue from mobile services, up from around 20% in previous quarters, as online advertisers migrate to mobile devices.

Net income attributable to shareholders rose to 3.55 billion yuan ($571.7 million) in the three months ending June from 2.64 billion yuan a year ago, beating analyst estimates of 2.82 billion yuan, according to Thomson Reuters SmartEstimate.

Revenues for the second quarter rose 58.5% to 11.986 billion yuan from 7.56 billion yuan a year earlier, in line with Baidu's own forecasts of between 11.82 billion yuan and 12.11 billion yuan.

Baidu had struggled to keep up with rivals on mobile devices such as smartphones as they invest in an array of apps to keep users engaged. It is also grappling with intensified competition on its own search turf from the likes of Qihoo 360 Technology and Sohu.com's Sogou search engine, which is 36.5% owned by Tencent Holdings.

Tencent, China's biggest social networking company, dominates smartphone screens with its mobile messaging app WeChat, which had 396 million monthly active users globally as of the end of March.

Also challenging Baidu, e-commerce titan Alibaba Group Holding said in June it would fully acquire mobile browser firm UCWeb.

In April, UCWeb and Alibaba jointly launched their own mobile search engine: Shenma, a play on words meaning 'what?' in Chinese.

http://timesofindia.indiatimes.com/followceleb.cms?alias=Baidu,UCWeb,Google,Baidu China


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