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.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesGooglesearch enginesfinancial resultsFIFA World Cup South AfricaFIFA World Cup 2010Baidu.com

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

Dan Nystedt

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?