Sohu, the Chinese portal, games and search group, swung into loss in 2014. But growth prospects, especially in video, have fuelled a big upswing in its shares in recent weeks.
Total revenues for 2014 were US$1.7 billion, up 19% year-on-year. Excluding interests in other companies, non-GAAP net loss for 2014 was US$97 million, compared with a net income of US$177 million in 2013.
Slowdowns in portals and games were highlighted as the problem areas, though the company says that its Changyou games subsidiary is now back in profit.
Sohu said its online video unit saw a 40% increase in mobile traffic from the second quarter. But it also said that third-quarter video content costs totalled $39 million, up 44%.
Prior to the results announcement the company’s NASDAQ-traded ADRs stood at $55.89. That compares with $43.09 in early November.