Sohu, the Chinese search, video and games group, saw revenues climb by 17% to $430 million in the three months to September, and net losses came in at $28 million, compared with $64 million in the prior quarter.
Online games revenues fell by 7% year-on- year and by 2% quarter-on-quarter, as the group’s games were reduced in difficulty and in-game purchases fell.
In contrast, revenues at search operation Sogou were up 86% year-on-year to over $100 million in a quarter. And the group said that Sohu Video “maintained a healthy growth in users, driven by an impressive 40% sequential increase in mobile traffic” but it did not break out the figures.
There is intense competition between Chinese video companies, despite regulatory curbs that may hinder the kinds of content they can handle.
Internet search – which can help drive traffic to video sites – is also competitive, even though the world’s largest search group Google is currently barred from operating inside China. A year ago, financial analysts speculated that Sogou could be sold to Qihoo, China’s number two search group. However, the unit attracted investment from Tencent and Sohu says that Sogou has now been profitable for three successive quarters.
Sohu announced that it has shuffled its executives at Changyou, the games unit. Tao Wang has resigned as Changyou’s CEO for personal reasons. Carol Yu, president and CFO of Sohu.com, and Dewen Chen, Changyou’s president, have been appointed co-CEOs.