Search engine lowers 4th qtr. revenue target
Chinese Internet giant Baidu is the latest company to show that the financial tsunami is having truly global effects on media companies.
The Nasdaq-listed search engine revised down its fourth-quarter revenue forecasts from a previous range of 1.05 billion yuan ($155 million) to a 15% lower target of $131 million.
“The economic slowdown in China is having a greater than expected impact on online marketing particularly in machinery and franchising,” company said in a statement.
But chairman and CEO Robin Li forecast a return of business after a period of shakeout.
“As online marketing customers adjust to the current difficult economic environment, we believe they will increasingly realize the value of paid Internet search as a very powerful performance-based model,” Li said.