The growing popularity of Baidu’s personalized news service has helped the Chinese company reach the sixth consecutive quarter of revenue growth
Baidu Inc.’s second-quarter revenue and profit topped expectations. The main reason for the revenues of Baidu, China’s most popular search engine, is the personalized news service that allowed the company to sustain growth, marking the sixth consecutive quarter of revenue growth.
According to the analysts’ estimates by Bloomberg, sales jumped to 26 billion yuan ($3.93 billion) in the three months that ended in June. Net income for the recent quarter hit 6.4 billion yuan, versus the average 4.82 billion yuan projected.
Baidu was forced to block a large tranche of advertisers under regulatory pressure after a medical ad scandal in 2016
Going to analyze the data, Baidu’s profits are from mobile revenue made up 77 percent of the total, compared with 72 percent a year earlier. Furthermore, the company also forecast third-quarter sales of 27.4 billion yuan to 28.8 billion yuan, in line with the 27.9 billion yuan analysts predicted.
CICC analyst Natalie Wu said in a note: “The mobile Baidu app shows healthy user and activation trends. We see still high monetization potential for Baidu feeds in the coming 6 to 12 months”. Following the report, U.S. shares of Beijing-based Baidu climbed 3.8 percent in extended trading.
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