China's Baidu Reports 38.6 Percent Revenue Increase in Q2

4:33 PM PST 07/24/2013 by Clarence Tsui

The Internet search engine operator also posts a slight hike in operating profits, but net income was down by 4.5 percent.

BUCHEON, South Korea – Chinese Internet search-engine operator Baidu announced on Thursday a 38.6 percent year-over-year increase in its total revenues in the second quarter of the year, with operating profits also upping by 3.2 percent.

In a press release, the Nasdaq-listed company -- considered as China’s equivalent to Google -- stated its total revenues for the period stood at $1.2 billion (7.56 billion yuan), while operating profits were $473.1 million (2.9 billion yuan). Net income, however, has fallen by 4.5 percent to $430.8 million (2.64 billion yuan).

Robin Li, Baidu’s chairman and CEO, said in the press release that the company has “made solid progress” during the quarter by securing 58,000 online active customers, with mobile revenues accounting for over one-tenth of its total quarterly revenues for the first time.

The statement also had Baidu expecting total revenues within the range of $1.4 billion (8.73 billion yuan) to $1.46 billion (8.96 billion yuan) in the third quarter, a figure which will translate to a year-over-year increase of 39.7 to 43.3 percent.

Chief financial officer Jennifer Li said in the press release that Baidu will “continue to invest aggressively”. The company’s major acquisition during the quarter was its $370 million takeover of the online video business of the Shanghai-based PPS -- a service which has since been incorporated within its iQiyi subsidiary.

On July 16, Baidu pledged to pay $1.9 billion for the smartphone app store 91 Wireless.

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