World Cup helps Baidu score record Q2

The company declined to comment on rumors it is following Google with a mobile OS

Internet searches surged during the World Cup soccer tournament, helping Baidu.com score its best quarter ever in terms of revenue and net profit.

China's largest Internet search provider said revenue surged 74 percent from last year to a record US$282.3 million, while net profit climbed 119 percent to $123.5 million.

Baidu credited healthy growth in its customer base and improved efficiency for the strong performance, but also noted the surge in Internet search related to the World Cup. The first game of the competition kicked off on June 11 and the final was played July 11.

"This quarter's strong performance also underscores the vast Internet market opportunities for us and the growing appreciation for search engine marketing in China," said Robin Li, Baidu's chairman and CEO, in a statement.

Analysts have said that Baidu also gained from Google's decision last March to re-route China-based searches through Hong Kong to avoid censorship laws in China. Some advertisers dropped Google and turned to Baidu.

Investors sent shares of Baidu stock up 3.2 percent, or $2.33, to $75.64 in after-market trading on the Nasdaq Stock Market, after the company reported its results.

During a conference call, one analyst asked Baidu about its plans for a mobile phone operating system to rival Google's Android. News sources in China have reported that Baidu is working on a mobile OS, but the company declined to comment specifically on any project.

"Over the past few years, we've seen faster growth in mobile search versus PC search but it's still a very small percentage of our search traffic," Li said on the call. He noted that most people in China don't have 3G mobile phones, making Internet search less popular than PC search, but that "going forward, we think the cell phone will take over and mobile traffic will take over."

"We have a number of very exciting projects going on internally and obviously we are excited about the mobile Internet going forward," he said.

The company expects its third quarter to be even better than its record-breaking second quarter, forecasting revenue of $324.4 million.

Tags business issuesFIFA World Cup 2010GoogleBaidu.comFIFA World Cup South Africafinancial resultssearch engines

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?