Chinese Internet giant Baidu reported revenues up by 34% in the first quarter of 2015 to $2.05 billion and net income of $395 million, a 3% decrease. The company said that mobile now accounts for 50% of revenue.
The company, which operates China’s most-used search engine, also owns video streaming platform iQIYI. “Content costs as a component of cost of revenues were RMB608 million ($98.1 million), representing 4.8% of total revenues, compared to 4.1% in the corresponding period in 2014, and 4.2% in the fourth quarter of 2014,” Baidu said.
“Baidu is redefining the search box by building an ecosystem to connect people with services and drive closed loop transactions. Baidu’s platform is comprehensive and robust, and we plan to fully exploit the huge growth potential ahead — in mobile marketing, online to offline, and key select verticals such as healthcare, education and financial services — by leveraging our solid mobile foundation, exceptional technology advantage, and proven operational experience,” said Robin Li, chairman and CEO of Baidu.
In the second quarter Baidu said that it currently expects to generate total revenues between RMB16.4 billion ($2.64 billion) and RMB16.8 billion ($2.70 billion), representing a minimum 37% year-over-year increase.
With its ADS stock trading at $219, Baidu currently has a market capitalization of $77 billion.