Growing traffic and increased spending by advertising customers have given China’s largest internet search engine Baidu a 95pc surge in profits for the second quarter.
The company reported total revenues in the second quarter of 2011 of 3.415bn yuan (US$528.4m), a 78.4pc increase from the same period in 2010.
Operating profit was 1.858bn yuan (US$287.5m), a 91.2pc increase, and net income was 1.633bn yuan (US$252.6m), a 95pc increase, all from the corresponding period in 2010.
Diluted earnings per ADS for the second quarter of 2011 were 4.67 yuan (US$0.72), and diluted earnings per ADS excluding share-based compensation expenses (non-GAAP) for the second quarter of 2011 were 4.77 yuan (US$0.74).
“Baidu had another excellent quarter, as we benefited from strong traffic growth and improved monetisation,” said Robin Li, Baidu chairman and CEO. “We were especially encouraged with the strong spending from large customers, highlighting the increased value they saw from their marketing spend on Baidu.”
“We continued to see strong momentum and product integration from our Box Computing open data and application platforms during the quarter,” Li added. “Our position at the centre of China’s internet ecosystem enables Baidu to benefit from key trends such as the growth of e-commerce.
“Looking ahead, I am confident that Baidu’s emphasis on innovation and execution will help us continue to attract and retain users and customers.”