UPDATE: Baidu 1Q Net Up 24%; 2Q Revenue Forecast Tops Estimates
2009年4月28日 - 11:21AM
Dow Jones News
Baidu Inc.'s (BIDU) first-quarter net income grew 24% on
higher-than-expected revenue, as traffic to the site improved since
it launched a new marketing campaign.
Baidu's American Depositary Shares rose 4% to $233.07 in
after-hours trading as the company's second-quarter revenue
forecast topped analysts' estimates.
The company, which holds a commanding share of the
Internet-search market in China, had warned earlier this year that
its online marketing customers might scale back on spending. The
company was also hit by negative publicity late last year when it
was criticized by state media for carrying ads from unlicensed
medical companies.
The company spent an additional CNY40 million ($5.85 million) on
marketing in the first quarter, including a high-profile television
ad campaign over the Chinese New Year holiday in January.
Baidu reported first-quarter net income of CNY181.1 million
($26.5 million), or CNY5.22 (76 cents) per ADS, compared with
CNY146.6 million, or CNY4.22 per ADS, a year earlier. Excluding
stock-based compensation, earnings rose to 86 cents per ADS from 68
cents. Analysts polled by Thomson Reuters expected 76 cents.
Revenue climbed 41% to CNY810.7 million, or $118.6 million,
above the company's February forecast of $114 million-$117
million.
The company said it expects revenue in the second quarter to be
between $157 million and $161 million, topping analyst forecasts of
$146.5 million, according to Thomson Reuters.
Active online-marketing customers increased 15% to more than
185,000, as revenue per customer grew 22%.
On April 20, Baidu officially launched a new system for its
customers to bid for advertising space, called Phoenix Nest.
Responding to pressure to more clearly differentiate paid search
results, some paid search ads now appear in a shaded area at the
top of the screen, in a format similar to that used by arch-rival
Google Inc. (GOOG).
On a conference call with analysts, Chief Executive Robin Li
said that the initial impact of the advertising changes on revenue
would be negative, but he expects the changes to be positive in the
long term.
-By Aaron Back, John Kell and Kathy Shwiff, Dow Jones Newswires;
(8610) 6588-5848; aaron.back@dowjones.com