CHINESE Internet search giant Baidu beat expectations for quarterly profit and revenue on the back of strong growth in its core online advertisement business, easing the pressure of funding a major expansion into new technology areas.

Consecutive quarters of strong profits  also show Baidu has learnt to navigate regulatory potholes in China after previous missteps even as competitors suffer temporary bans and fines for failing to sensor content.

Baidu said online revenue advertising rose by 25 percent to 21.1 billion yuan [$3.10 billion] in the second quarter ended June 30, partly driven by growth attributed to the growing newsfeed product, an app similar to Facebook Inc's feed.

Total revenues rose by nearly a quarter to 26.0 billion yuan, topping estimates of a 22.4 percent rise.

Net income rose 45 percent to 6.4 billion yuan, or 18.14  yuan per American depository share, compared to an estimate 13.4 percent rise by 18 analysts, according to Thomson Reuters  I/B/E/S.

Several competing video platforms and feeds have been impacted by censorship restrictions  in recent months, including Bilbili Inc, which saw its stock drop almost 4 percent since last week after announcing its app would be temporarily removed from app stores by authorities.

'' We are able to maintain a  high standard and a close dialogue with regulators ,''  Robin Li, Baidu's  chief executive, said on a call with analysts on Wednesday, referring to the company's news feed.

'' We've seen before changes or fluctuations  from time to time  and we're able to cope with that going forward.''

Baidu has more than doubled its its profits in several recent quarters . That followed a rough period in  2016  when a Chinese government crackdown on suspect  medical ads  gutted  Baidu's  search ad business.

The firm has since sold off its food delivery  business and folded  its group buying  site  Naomi and other units.[Agencies].


Post a Comment

Grace A Comment!