Baidu profit up 34 percent as mobile service grows

(AP)—Baidu Inc., which operates China's most popular search engine, said Friday its quarterly profit rose 34 percent over a year earlier as its mobile business grew.

The Beijing-based company said it earned 3.5 billion yuan ($571.1 million) in the three months ended June 30. Revenue rose 58.5 percent to 11.9 billion yuan ($1.9 billion).

Baidu and other Internet companies are building mobile e-commerce and other services as Chinese users shift rapidly to going online using smartphones and . Baidu dominates traditional Internet search but is a much smaller presence in mobile.

The contribution of mobile to Baidu's total revenue rose above 30 percent for the first time, chairman Robin Li said in a statement.

"We had a great quarter as we continued to build very strong mobile momentum," Li said.

The mobile effort was reflected in a doubling of selling and administrative expenses to 2.1 billion yuan ($346.4 million), which the company said was due to higher promotional spending.

For the current quarter, Baidu forecast a 50.9 to 55 percent rise in revenue over a year earlier to 13.4 billion to 13.8 billion yuan ($2.1 billion to $2.2 billion).

© 2014 The Associated Press. All rights reserved.

Citation: Baidu profit up 34 percent as mobile service grows (2014, July 25) retrieved 19 March 2024 from https://phys.org/news/2014-07-baidu-profit-percent-mobile.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Explore further

Shift to mobile Internet hits Baidu profit

0 shares

Feedback to editors