Baidu 2013 Q1 net profit up by 8.5%

China’s largest search engine Baidu (NASDAQ: BIDU) on April 26 released financial results of the first quarter ended March 31, 2013. The results show that in the first quarter of 2013, total revenue of Baidu amounted 5.969 billion yuan (about 961 million U.S. dollars), an increase of 40%; the net profit reached 2.043 billion yuan (about 328.9 million U.S. dollars), an increase of 8.5%. It is noted that Baidu in first quarter invested a total of 811 million yuan (US 129.76 million), an increase of 82.9% compared with the same period in 2012.

The first quarter financial results of Baidu did not meet Wall Street analysts’ expectations (the diluted earnings per share is $ 0.95, which was less than Thomson Reuters analysts’ expectation of $ 1.03). It is believed that this is mainly due to the integration of financial results of the company’s video network in the quarter report. Analysts believe that due to the high cost of the online video industry, it is difficult for to turn profitable in the near future.

In regular trading on the NASDAQ stock market on Thursday, Baidu share price rose $ 4.25, and closed at $ 92.34, an increase of 4.82%; But after the announcement of the earnings report, Baidu share price fell by $ 6.04, to 86.30 U.S. dollars, down nearly 7%. 2013 First Quarter Results Summary:

– Total revenue reached 5.969 billion yuan (about 961 million U.S. dollars), an increase of 40%.

– Operating profit of 2.21 billion yuan (about 355.9 million U.S. dollars), an increase of 5.7%.

Industry analysts pointed out that Baidu had substantial investment in research and development such as voice and image recognition technology and this is a positive signal for the company to further embrace the change and development of the mobile Internet industry in 2013.

Posted in: IT

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