China search engine Baidu sees Q4 profits nearly triple

The China-based search engine continues to dominate the market, with Google a distant second

China's largest search engine Baidu continues to post strong earnings, with the company's net profits more than doubling for the fourth quarter in 2010.

Baidu, which has long dominated China's search engine market, said net profits for the quarter rose 171.3 percent compared to the same period a year earlier to US$176 million.

"Market momentum" and the company's efforts to increase advertising led the growth, said Baidu CEO Robin Li in a statement. Revenues for the fourth quarter saw a 94.4 percent increase, amounting to $371 million.

Baidu currently has a 75.5 percent share of China's search engine market, according to Beijing-based research firm Analysys International. Google is a distant second and saw its market share fall during the course of 2010 to 19.6 percent. Last year, Google declared it would stop censoring searches in the country, a move that analysts say led to a decline for Google's search business in China.

Baidu, on the other hand, has been able to strengthen its business as the Chinese Internet market grows. The country has 457 million Internet users, according to the China Internet Network Information Center. In 2010, search engines beat out online music to become China's most widely used Internet service. Currently search engines in the county have 374 million users.

Overall for the fiscal year of 2010, Baidu saw net profits grow 137.4 percent to $534 million. Total revenue for the year increased by 78 percent to $1.2 billion.

The company said it wants to further integrate its online search with e-commerce and social networking services, two growing sectors in China's Internet market.

In October Baidu launched a new Chinese online shopping mall with Japanese e-commerce company Rakuten.

At the same time, the Chinese search giant already offers social networking products like Baidu Tieba, a popular online tool to search and create forums. It was originally meant to solidify the company's market position, but now Baidu is looking at developing commercial products and monetizing these social services, Li said during a conference call on Tuesday.

"Social search products represent a significant portion of our total traffic," Li said.

Join the PC World newsletter!

Error: Please check your email address.

Tags business issuesbaidufinancial resultsinternetsearch engines

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

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

Michael Kan

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles


PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?