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China’s Qihoo Posts Higher Profit Amid User Growth

By noreply@blogger.com (InfoseekChina)

(WSJ) Qihoo 360 Technology Co. , which offers a Web portal and antivirus software in China, said second-quarter net income more than doubled as it saw growth in advertising revenue and users.

The company said average monthly users for PC-based products and services reached 514 million in June, up from 496 million in June 2014.

Meanwhile, Chinese smartphone users of Qihoo’s mobile security product 360 Mobile Safe rose to 799 million in June from 641 million a year earlier.

Qihoo said it had solid growth in the quarter and saw favorable results from new products including the 360 Auto Guard automobile data recorder.

On June 17, the company said it received a buyout offer from a group that includes Chairman and Chief Executive Zhou Hongyi valued at $9.01 billion, or $77 per American depositary share. The offer marks a 17% premium over the June 16 closing price of $66.05, and if successful would be the largest take-private deal of a U.S.-listed Chinese company. The Wall Street Journal reported last week that the group is considering cutting the price of the bid after China’s stock-market rout lowered valuations.

On Tuesday, Qihoo reiterated that no decision has been made in response to the proposal.

Like other Chinese Internet companies, Qihoo has invested heavily in a shift to mobile users. In April, it paid $409 million for a 45% stake in a joint venture with Chinese smartphone maker Coolpad Group Ltd.

For the quarter ended June 30, Qihoo earned $81.4 million, or 62 cents per ADS, compared with $39.1 million, or 39 cents per ADS, a year earlier. Earnings excluding items were 82 cents per ADS.

Analysts polled by Thomson Reuters had expected 72 cents.

Revenue rose 38% to $438.3 million. Qihoo had projected revenue of $435 million to $445 million.
Source: Wall Street Journal by Josh Beckerman

Source:: China’s Qihoo Posts Higher Profit Amid User Growth

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