Thursday, 29 July 2010

Baidu's net income rose by 118.5% YoY in Q2 2010

"Leading Chinese search engine, Baidu, Inc, announced last week its unaudited financial results for the second quarter ended June 30, 2010. The big news this quarter has been the significant gains the search leader has made in the wake of the marginalization of its next closest competitor, Google Inc, which fell out of favor with the Chinese government when it refused to abide by its content regulations (aka – censorship requirements.) According to Chinese market research company iResearch the country’s entire search market revenue grew by an impressive 53% Quarter-over-Quarter (QoQ)and Baidu was the largest beneficiary. Baidu’s share of the market increased to 70.8% from 67.8% in Q1 while Google’s share fell to 27.3% from 29.5%.
Key financial highlights for Q2 2010 include:
Total revenues grew 74.4% Year-over-Year (YoY) to RMB1.914 billion ($282.3 million),
Operating profit grew 129.8% YoY to RMB971.8 million ($143.3 million), and
Net income grew 118.5% YoY to RMB837.4 million ($123.5 million).
Key operating highlights for Q2 2010 include:
After a slightly down quarter in Q1, Baidu’s active online marketing customers grew again to 254,000, a 25% YoY increase and a 15% Quarter-on-Quarter (QoQ) increase,
In addition to growth in total customers the company also saw strong increases in the average revenue per user (ARPU). Baidu’s ARPU grew to RMB7,500 (US$1,106), a 39% YoY increase and a 27% QoQ increase,
Traffic acquisition costs (TAC) of RMB186 million accounted for 9.7% of total revenues compared to 16% in the year earlier period and 13.2% in the previous quarter."
Source:  DigitalEastAsia, 26th July 2010