Rising expenses chip away at Sohu's net income in Q4
By Ding Yining |
February 5, 2013, Tuesday
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Print Edition
Print Edition
NET profit at Sohu.com, a Chinese online game operator and news portal owner, fell 4 percent in the last quarter of 2012 from a year ago because rising marketing expenses eroded income gains from its online game and search engine businesses.
Net income in the three months ended on December 31 totaled US$23 million, the company said in a stock exchange filing yesterday.
The strong online gaming income boosted overall sales by 22 percent from the same quarter a year ago to US$299 million. In the fourth quarter online game sales grew 29 percent to US$159 million, contributing 53 percent of its total income during the period.
But the sales were eroded as the company's operating expenses grew 12 percent year on year to US$142 million due to salary increase and higher marketing and promotional spending.
Its total revenue in 2012 jumped 25 percent from a year ago to US$1.07 billion and its search engine affiliate Sogou was the fastest growing unit after more than doubling its sales to US$131 million.
Sohu has also set up an independent sales team for its online video unit at the end of 2012 to boost advertising income.
"The increase in brand advertising income was due to rising spending from automakers and real estate firms," said Belinda Wang, co-president and chief operating officer.
Net income in the three months ended on December 31 totaled US$23 million, the company said in a stock exchange filing yesterday.
The strong online gaming income boosted overall sales by 22 percent from the same quarter a year ago to US$299 million. In the fourth quarter online game sales grew 29 percent to US$159 million, contributing 53 percent of its total income during the period.
But the sales were eroded as the company's operating expenses grew 12 percent year on year to US$142 million due to salary increase and higher marketing and promotional spending.
Its total revenue in 2012 jumped 25 percent from a year ago to US$1.07 billion and its search engine affiliate Sogou was the fastest growing unit after more than doubling its sales to US$131 million.
Sohu has also set up an independent sales team for its online video unit at the end of 2012 to boost advertising income.
"The increase in brand advertising income was due to rising spending from automakers and real estate firms," said Belinda Wang, co-president and chief operating officer.
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