Business
09:57, 01-Aug-2018
Baidu tops profit estimates on ad sales growth
Updated
09:41, 04-Aug-2018
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Chinese Internet search giant Baidu Inc on Tuesday topped Wall Street estimates for quarterly profit on the back of strong growth in its online advertisement business.
Revenue for the segment rose 25 percent to 21.1 billion yuan (3.10 billion US dollars) in the second quarter.
The company has seen rapid growth in its newsfeed product, an app that is similar to Facebook’s feed.
Net income attributable to Baidu rose to 6.4 billion yuan, or 18.14 yuan per American depositary share (ADS), in the second quarter ended June 30 from 4.42 billion yuan, or 11.31 yuan per ADS, from a year earlier.
Excluding one-time items, Baidu earned 21.06 yuan per ADS, above expectations of 16.46 yuan.
Total revenue rose 24.4 percent to 25.97 billion yuan from 20.87 billion yuan.
The company’s US-listed shares rose about three percent to 254 US dollars in after-hours trading.
Source(s): Reuters