China search engine company Baidu posts slower revenue growth

SAN FRANCISCO Tue Oct 30, 2012 5:55am IST

An employee walks past the Baidu company signage outside its headquarters in Beijing, July 26, 2011. REUTERS/Soo Hoo Zheyang/Files

An employee walks past the Baidu company signage outside its headquarters in Beijing, July 26, 2011.

Credit: Reuters/Soo Hoo Zheyang/Files

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - Baidu Inc (BIDU.O), China's largest search engine company, posted its slowest quarterly revenue growth in more than two years, hurt by slowing sales as economic growth slows.

Baidu said on Monday that revenue in the third quarter was $994.6 million, up 49.7 percent from the year-ago period.

For the fourth quarter, Baidu said it expects revenue of $979.3 million to $1.010 billion, below the average analysts' forecasts of $1.03 billion according to Thomson Reuters I/B/E/S.

Baidu posted net income of $478.6 million in the three months ended September 30, up roughly 60 percent year-on-year. Baidu said it earned $1.39 per American Depository Share in the third quarter, excluding stock-based compensation expenses.

Baidu, which has dominated the search market since Google Inc (GOOG.O) relocated its search engine to Hong Kong in a row over censorship in 2010, is facing a new challenge from China's top anti-virus software firm, Qihoo 360 Technology (QIHU.N).

A search engine launched by Qihoo in August has started to gain traction, accounting for 5-10 percent of search traffic since its launch, according to data from research firm Analysys International.

Baidu shares have fallen about 2 percent this year on expectations that it will be hurt by slower economic growth in China, underperforming a 14 percent rise on the Nasdaq exchange.

(Reporting By Alexei Oreskovic; Editing by David Gregorio)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Reuters Showcase

Balancing Act

Balancing Act

Europe's carmakers walk tightrope between low cost and high spec.  Full Article 

'Windows 10'

'Windows 10'

Microsoft names next operating system 'Windows 10'  Full Article 

Split from eBay

Split from eBay

Analysis - PayPal spawn have advanced where PayPal stood still   Full Article 

iPhone 6 in China

iPhone 6 in China

With iPhone 6 approved in China, Apple suppliers ready for demand.  Full Article 

Netflix Deal

Netflix Deal

Netflix 'Crouching Tiger' deal incurs wrath of theater chains.  Full Article 

Oracle Convention

Oracle Convention

Larry Ellison still the top draw at Oracle's mega-convention  Full Article 

Tax Rules

Tax Rules

EU says Ireland swapped Apple tax deal for jobs.  Full Article 

Music Services

Music Services

Google searches for right note in online music business.  Full Article 

E-Commerce Dispute

E-Commerce Dispute

Amazon, Disney appear close to settling dispute over movies - WSJ.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage