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Baidu in 60% income rise as advertising revenues surge | Baidu in 60% income rise as advertising revenues surge |
(about 3 hours later) | |
Baidu, China's biggest search engine, has reported a 60% rise in quarterly net income to 3.01bn yuan ($478m; £299m) compared to last year. | Baidu, China's biggest search engine, has reported a 60% rise in quarterly net income to 3.01bn yuan ($478m; £299m) compared to last year. |
Baidu said its income jumped in the three months ending 30 September, as the company continued to attract increasing amounts of advertising. | Baidu said its income jumped in the three months ending 30 September, as the company continued to attract increasing amounts of advertising. |
The company said revenue from online marketing surged nearly 50%. | The company said revenue from online marketing surged nearly 50%. |
Baidu has about 80% of the Chinese search market. Google exited China in 2010 over a censorship row. | Baidu has about 80% of the Chinese search market. Google exited China in 2010 over a censorship row. |
Analysts said there could be challenges on the horizon, however, as Baidu's fourth quarter revenue projection came in below expectations. | |
Baidu, which is listed in New York, said Monday revenue in the October to December period will range from 6.16-6.35bn yuan. Economists had estimated about 6.14bn yuan for that period. | |
Mobile growth | |
Baidu itself acknowledged that it must manage its future mobile strategy as more users shift from personal computers to mobile devices including smartphones and tablets. | |
The revenue generated from mobile search is far less than from PCs at the moment. | |
In October, Credit Suisse downgraded the company's outlook over concerns about how it would make money from its mobile search traffic. | |
On Tuesday, Baidu chief executive, Robin Li, said the firms mobile search traffic was growing at triple digit rates. | |
"We are working hard to improve the monetisation system for mobile and to educate our customers to take full advantage of mobile," Mr Li told analysts on a conference call after the earnings announcement. | |
"But we expect it would take some time to close the gap," he added. | |
Baidu also faces increased competition. In August this year Qihoo 360 Technology, an anti-virus software company, launched a competing search engine. | |
Baidu shares are not trading because of a hurricane on the US East Coast which has led to the temporary closure of the New York Stock Exchange. |
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