Earnings: Baidu Says Q3 Sales and Profit Rise; Market Share Expands

Baidu’s Q3 profit rose almost 10 fold and its sales gained 176 percent despite increased competition from Google and Yahoo.
Net income was $10.8 million, or 31 cents per share, while sales were $30.3 million, the Chinese search company said.
“During the quarter, we continued to strengthen our position as the leading provider of Chinese language search,” CEO Robin Li said in the earnings release. “By focusing on enhancing and expanding both our core search functionality and our suite of community-based search products, we continued to achieve significant traffic growth and market share expansion.”
In the earnings conference call (via SeekingAlpha), Li said that an independent survey by the Chinese Internet Network pegged Baidu’s market share at 62 percent in August, compared with 48 percent a year earlier.
China’s search market is still in its infancy and still has huge potential. “China is now the fourth largest economy in the world, but as the paid search market is still much, much smaller than many of the markets we are keeping track of, not only the U.S. but countries like U.K., Japan, and Korea,” he said.
In addition, Baidu also is optimistic about its recent partnership with MTV Networks in which a special area is created on its Web site for Chinese users. Baidu also has high hopes for the mobile area. The company is modifying its offerings including search, weather reporters and stock information for wireless devices. “We are seeing good results from this early effort and expect this to be an area of growth for us in the future,” he said.
Earnings Release|Conference Call