China search engine Baidu plans $1.0 bn share buy-back

Baidu has been investing heavily to provide services through the Internet, including food delivery and movie ticket booking
Baidu has been investing heavily to provide services through the Internet, including food delivery and movie ticket booking

Chinese search engine Baidu, listed on the US Nasdaq market, said Thursday it is planning a $1.0 billion share buy-back programme over the next 12 months.

The announcement comes after the firm, which is often compared to Google, on Monday announced disappointing second-quarter results, sending shares plunging.

Baidu's profit for the second quarter came in at 3.66 billion yuan ($591 million), up slightly from 3.55 billion yuan in the same period a year earlier but below forecasts.

Baidu said in a statement its board had authorised share repurchases of up to $1.0 billion, which would be funded through its existing cash balances.

Baidu stock rose 1.18 percent to $170.01 on Wednesday, according to Nasdaq, putting its market capitalisation at just under $60 billion.

Besides its core search business, Baidu has been investing heavily to provide services through the Internet, including food delivery and movie ticket booking.


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© 2015 AFP

Citation: China search engine Baidu plans $1.0 bn share buy-back (2015, July 30) retrieved 7 December 2019 from https://phys.org/news/2015-07-china-baidu-bn-buy-back.html
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