By email@example.com (InfoseekChina)
(WSJ) Baidu Inc. posted a 52% revenue increase for the third quarter, with a smaller increase in profit as its expenses were higher.
The Chinese search engine said it had a “very strong” quarter, especially in mobile, with mobile traffic surpassing PC traffic during the quarter. Mobile revenue provided 36% of total revenue.
The company said it made progress in efforts like Baidu Connect, which helps businesses connect with targeted consumers on mobile devices.
Baidu’s American depositary shares were down 1%, to $222.30, in recent late trading.
Baidu reported a third-quarter profit of 3.88 billion Chinese yuan ($631.5 million), or 11 yuan ($1.79) an ADS, compared with a profit of 3.05 billion yuan, or 8.63 an ADS, a year earlier.
Earnings per share excluding stock-based compensation were 11.67 yuan ($1.90) an ADS.
Revenue surged to 13.52 billion yuan from 8.89 billion.
For the fourth quarter, Baidu expects revenue of 13.85 billion to 14.25 billion yuan, compared with the 14.04 billion yuan expected by analysts polled by Thomson Reuters.
Baidu, which makes the bulk of its top line from search advertising, has been has been spending heavily to migrate its desktop search advertising prowess to mobile devices such as tablets and smartphones. The company has also invested in other ways—such as gaming—to contend in the rapidly growing mobile market in China.
In the third quarter, traffic acquisition cost was equal to about 12.9% of revenue, up from 11.7% a year earlier.
Total operating expenses increased to 9.6 billion yuan from 5.55 billion.
In September, Seagate Technology PLC announced an agreement to cooperate with Baidu on online storage, archiving and Big Date analysis.
Source: Wall Street Journal by Josh Beckerman
Source: Baidu Posts Higher Revenue on Mobile Strength