By Maria Armental
Baidu Inc., China's leading search engine, reported higher second-quarter profit but a slight decline in revenue amid the coronavirus pandemic. Here's what you need to know.
PROFIT: Net income rose to 3.58 billion yuan ($507 million) from CNY2.41 billion a year earlier. On an adjusted basis, profit rose to CNY14.73 per American depositary receipt. Analysts surveyed by FactSet expected CNY9.43 per ADR in adjusted profit.
REVENUE: Total revenue edged down to CNY26.03 billion from CNY26.33 billion a year earlier. Baidu had projected CNY25 billion to CNY27.3 billion, while analysts expected CNY25.70 billion.
IQIYI: Revenue from the online video platform reached CNY7.4 billion, up 4% from the previous year. iQiyi membership revenue rose 19% while online advertising revenue fell 28%, the company said.
OUTLOOK: This quarter, Baidu projects CNY26.3 billion to CNY28.7 billion in revenue, compared with the analysts' forecast of CNY27.63 billion. Core revenue, Baidu said, citing uncertainty about the business impact from the pandemic, could range from a 3% increase to a 7% decline from the year-earlier period.
PANDEMIC: Robin Li, co-founder and chief executive, said in a statement that Baidu's business was rebounding and its artificial intelligence segments, including cloud, smart devices and smart transportation, saw double-digit growth in the latest period. "In addition to investing in new AI businesses, Baidu is also diversifying our revenue streams through membership, online games and others," Chief Financial Officer Herman Yu said in a statement.
Write to Maria Armental at email@example.com
(END) Dow Jones Newswires
August 13, 2020 17:13 ET (21:13 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.