China’s Baidu Sees Profit Growth at 27%

China's Baidu Sees Profit Growth 27%
PRNewsFoto/iQIYI

HONG KONG – Baidu, China’s search engine giant, saw net earnings grow by 27% in the third quarter, less than stock market forecasts, as revenues rose by 52%.

Total revenues in the third quarter of 2014 were RMB13.5 billion ($2.20 billion) in the three months to end of September. Net attributable income was RMB3.88 billion ($632 million).

Content acquisition and production, mainly relating to its iQiyi online video unit, rose as a proportion of the groups’ costs. Content cost RMB498 million ($81.2 million), representing 3.7% of total revenues, compared to 2.5% in the corresponding period in 2013, and 3.0% in the previous quarter.

Earlier in the week, iQiyi announced a strategic partnership with Dolby Laboratories to enhance the sound quality of online video and deliver true high-definition entertainment experiences at home and on the go.

The group’s NASDAQ-listed shares were down 1.9% at $224.55 ahead of the results and in Thursday’s pre-market look set to slide further.

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