China's Baidu doubles profits in second quarter

Jul 21, 2010
Chinese Internet search giant Baidu on Wednesday reported its profits more than doubled in the second quarter, topping 837 million yuan, or 126 million dollars.

Chinese Internet search giant Baidu said Thursday its profits more than doubled in the second quarter, as its customer base widened at the expense of rival Google.

The results came after a Chinese research report showed Baidu increased its dominance of the world's biggest online market in the second quarter as Google lost market share during its public spat with Beijing over censorship.

Baidu said net profit soared nearly 120 percent year-on-year to 837.4 million yuan (123.6 million dollars), helped by better-than-expected search engine traffic during the World Cup in South Africa last month.

Profits were kicked higher by an increase in online marketing revenues, which rose almost 75 percent on year to 1.9 billion yuan after the company boosted its sales force and embarked on a campaign to attract more customers.

Revenue is expected to total between 2.2 and 2.6 billion yuan in the third quarter, up 72-77 percent from the same period in 2009, the company forecast.

Chief executive Robin Li said the results underscored "the vast Internet market opportunities for us and the growing appreciation for search engine marketing in China".

"In the years ahead, I am confident Baidu will become even more central to China's Internet ecosystem," Li told reporters in a conference call.

Baidu said it had some 254,000 active online marketing customers in the second quarter, up 25 percent year-on-year and 15 percent more than in the first quarter.

The Chinese company is locked in a fierce battle with Google in the country's lucrative and still-emerging Internet market.

The number of web users in China now stands at around 420 million, according to official figures released last week.

The figure, almost a third of the population, marks an increase of 36 million since the number of users was last given at the end of 2009.

Li noted the massive growth opportunities in China, with "70 percent of the country still offline".

"While we are proud of the exceptional shareholder value created by Baidu, we are just getting started," Li said.

Baidu currently dominates the Chinese market, holding a 70 percent share against Google's 24 percent, according to Beijing-based research firm Analysys International.

The US Internet titan had boasted a 31 percent share in the first three months of the year, before its protracted tussle with the Chinese authorities.

In March, Google said it would no longer bow to government censors and effectively shut down its Chinese search engine, automatically re-routing mainland users to its uncensored site in Hong Kong.

The web giant has since tweaked the way it re-routes users in order to gain the renewal of its business license in China, creating a new landing page with a link to the Hong Kong site, which users must click on themselves.

Analysys said Google's decision to shift its server to Hong Kong and uncertainty over the renewal of its licence had cost the company valuable market share.

Explore further: Turkey still hopes Twitter will open local office

add to favorites email to friend print save as pdf

Related Stories

Google loses out in Chinese search engine market

Jul 21, 2010

Google's share of the Chinese search engine market fell in the second quarter while the US Internet giant was embroiled in a public battle with Beijing over censorship, a research firm said Wednesday.

Baidu shares soar as net profit sharply higher

Apr 28, 2010

Baidu shares soared past 700 dollars on Wednesday after the Chinese Web search giant more than doubled its net profit amid Google's conflict with the Chinese authorities.

China Mobile hopes to agree iPhone deal

Mar 18, 2010

China Mobile said on Thursday it hopes to soon reach a deal with Apple to sell the iPhone, several months after rival China Unicom launched the iconic smartphone in the country.

Official: Google's China changes in line with law

Jul 20, 2010

(AP) -- China renewed Google's Internet license after it pledged to obey censorship laws and stop automatically switching mainland users to its unfiltered Hong Kong site, an official said Tuesday.

Recommended for you

Net neutrality balancing act

16 hours ago

Researchers in Italy, writing in the International Journal of Technology, Policy and Management have demonstrated that net neutrality benefits content creator and consumers without compromising provider innovation nor pr ...

Twitter rules out Turkey office amid tax row

Apr 16, 2014

Social networking company Twitter on Wednesday rejected demands from the Turkish government to open an office there, following accusations of tax evasion and a two-week ban on the service.

How does false information spread online?

Apr 16, 2014

Last summer the World Economic Forum (WEF) invited its 1,500 council members to identify top trends facing the world, including what should be done about them. The WEF consists of 80 councils covering a wide range of issues including social media. Members come ...

User comments : 0

More news stories

Hackathon team's GoogolPlex gives Siri extra powers

(Phys.org) —Four freshmen at the University of Pennsylvania have taken Apple's personal assistant Siri to behave as a graduate-level executive assistant which, when asked, is capable of adjusting the temperature ...

Better thermal-imaging lens from waste sulfur

Sulfur left over from refining fossil fuels can be transformed into cheap, lightweight, plastic lenses for infrared devices, including night-vision goggles, a University of Arizona-led international team ...

Chronic inflammation linked to 'high-grade' prostate cancer

Men who show signs of chronic inflammation in non-cancerous prostate tissue may have nearly twice the risk of actually having prostate cancer than those with no inflammation, according to results of a new study led by researchers ...