Profit rises at Sohu as ad income increases
By Ding Yining |
October 26, 2010, Tuesday
|
Print Edition
Print Edition
A LEADING Chinese news portal and online game operator Sohu Inc said third-quarter profit jumped 21 percent year-on-year with solid growth in advertising income while revenue from its search engine boomed.
Net income was US$45.2 million, or US$1.16 per share, the company said in a statement yesterday.
Total revenue climbed 20 percent in the period to US$164.1 million, and online games continued to be the biggest contributor as sales from the sector jumped 25 percent from a year earlier to US$85.6 million.
Search revenues surged 134 percent in the quarter to US$5.4 million while online advertising sales were up 22 percent to US$59.1 million.
Alibaba Group and Yunfeng Fund LP, a private-equity fund backed by Alibaba Chairman Jack Ma, signed a framework agreement in August to pay US$24 million for a 16 percent stake in Sohu's search engine unit, Sogou Inc. Sohu chief executive of Sohu Charles Zhang will also take a 16 percent stake in Sogou.
Zhang reiterated that they envision Sogou becoming the second largest domestic search engine behind Baidu.
"We believe the introduction of strategic investors gives us a more competitive position and promising outlook for collaboration with China's largest e-commerce website," Zhang said in the earnings report.
The company predicts total revenues in the fourth quarter to be between US$163 million and US$168 million.
"We'll focus on improving our search results and providing an innovative Internet browser to grab bigger market share," said Wang Xiaochuan, Sogou's chief technology officer.
Net income was US$45.2 million, or US$1.16 per share, the company said in a statement yesterday.
Total revenue climbed 20 percent in the period to US$164.1 million, and online games continued to be the biggest contributor as sales from the sector jumped 25 percent from a year earlier to US$85.6 million.
Search revenues surged 134 percent in the quarter to US$5.4 million while online advertising sales were up 22 percent to US$59.1 million.
Alibaba Group and Yunfeng Fund LP, a private-equity fund backed by Alibaba Chairman Jack Ma, signed a framework agreement in August to pay US$24 million for a 16 percent stake in Sohu's search engine unit, Sogou Inc. Sohu chief executive of Sohu Charles Zhang will also take a 16 percent stake in Sogou.
Zhang reiterated that they envision Sogou becoming the second largest domestic search engine behind Baidu.
"We believe the introduction of strategic investors gives us a more competitive position and promising outlook for collaboration with China's largest e-commerce website," Zhang said in the earnings report.
The company predicts total revenues in the fourth quarter to be between US$163 million and US$168 million.
"We'll focus on improving our search results and providing an innovative Internet browser to grab bigger market share," said Wang Xiaochuan, Sogou's chief technology officer.
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