Baidu Reports Strong Quarterly Results as a Result of Video Streaming Growth
Chinese search engine giant Baidu Inc rep[orted high quarterly profit and revenue on Wednesday, helped by strong growth in its video streaming platform iQIYI.
Revenue from iQIYI reached RMB 7.4 billion ($1.04 billion), up 7% year over year. iQIYI membership revenue grew 30% year over year, offset by online advertising revenue declining 14% year over year. The streaming platform competes with Alibaba Group Holding Ltd’s Youku.
The company's total revenues reached RMB 28.1 billion ($3.93 billion), flat from last year, up 3% year over year, and up 7% quarter over quarter. Online marketing revenues, which includes search, news feeds and a video app, were RMB20.4 billion ($2.86 billion), decreasing 9% year over year and increasing 6% quarter over quarter. Other revenues were RMB 7.6 billion ($1.07 billion), increasing 34% year over year, driven mainly by the strong growth in iQIYI membership, cloud services and smart devices.
Revenue from Baidu Core reached RMB 21.0 billion ($2.94 billion), decreasing 3% year over year, or increasing 2% year over year, and increasing 8% quarter over quarter.
Net loss attributable to Baidu was 6.37 billion yuan in the third quarter ended Sept. 30, compared with a net income of 12.4 billion yuan a year earlier.
The company forecast fourth-quarter revenue between 27.1 billion yuan and 28.7 billion yuan.