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Baidu Reports Stellar Revenue, Profit Growth For Chinese Internet Search Baidu Reports Stellar Revenue, Profit Growth For Chinese Internet Search(0)

‘This was another excellent quarter for Baidu,’ said Robin Li, Baidu’s chairman and CEO. ‘Our revenue growth remained strong and is an indication of our ability to execute our strategy of providing the best possible user experience and service to our customers. Instrumental to our growth were the ceaseless efforts of our sales force and customer service teams who continued to deliver strong results despite a long Chinese New Year holiday and severe snow storms across large parts of China. In addition, a larger customer base contributed to strong organic and Baidu Union growth.’

Operating profit in the first quarter of 2008 increased to RMB147.4 million, representing a 99.6% increase from the corresponding period in 2007. Net income in the first quarter of 2008 increased to RMB146.6 million, representing a 71.5% increase from the corresponding period in 2007.

Online marketing revenues for the first quarter were RMB572.7 million, representing a 108.5% increase from the first quarter of 2007. The growth was mainly driven by increases in the number of active online marketing customers as well as revenue per customer. Baidu had nearly 161,000 active online marketing customers in the first quarter of 2008, representing a sequential increase of 3.9% and an increase of 43.8% from the corresponding period in 2007. Revenue per online marketing customer for the first quarter remained stable sequentially at approximately RMB3,600, and increased approximately 44.0% from the corresponding period in 2007.

Traffic acquisition costs as a component of cost of revenues were RMB76.6 million, representing 13.3% of total revenues, compared to 10.3% in the corresponding period in 2007. The increase in TAC as a percentage of total revenues primarily reflects the continued growth of revenue contribution from Baidu Union members.

Operating profit was RMB147.4 million, representing a 99.6% increase from the corresponding period in 2007. Net income was RMB146.6 million, representing a 71.5% increase from the corresponding period in 2007. Basic and diluted EPS for the first quarter of 2008 amounted to RMB4.29 and RMB4.22, respectively.

As of March 31, 2008, Baidu’s cash, cash equivalents and short-term investments amounted to RMB1.7 billion. Baidu currently expects to generate total revenues in an amount ranging from RMB780 million to RMB800 million for the second quarter of 2008, representing a 94.4% to 99.4% increase from the corresponding period in 2007 and a 35.8% to 39.3% increase from the first quarter of 2008.

Source : Chinatechnews

iResearch-Baidu: Entertainment Brings traffic Financial Brings Income iResearch-Baidu: Entertainment Brings traffic Financial Brings Income(0)

Visits of Baidu entertainment exceeds 10 million
According to the latest data from iUserTracker, monthly visits of Baidu entertainment reached 10 million since its launch in Jan, 2008. Users of Baidu entertainment are mainly of young people with low incomes.

The launch of Baidu entertainment channel can increase the traffic and meet young users requirements. But has little contribution in attracting ads. According to iResearch, Baidu will improve user experience to make entertainment channel an important one. And advertisers haven¡¯t realized media value of Baidu entertainment channel yet.


iUserTracker- User Structure and Behavior of Baidu Entertainment and Financial Service in Feb. 2008





Financial service is sharp in business value

According to the latest data from iUserTracker, since the launch in Nov, 2007, monthly visits of Baidu financial channel maintains at 2 million. Its users are mainly aged over 36 with high education level and high incomes, which helps financial channel to attract many advertisers, especially advertisers in financial, insurance, automobile and real estate industries.

iResearch believes that the launch of Baidu financial channel is to attract users with high consumption power. User stickiness is the key point for Baidu financial channel. Monthly viewing duration of Baidu financial channel has exceeded 3 minutes by now.

Services for young users bring traffic

Young users are fantastic in entertainment news and can bring large number of visits. But these traffics are of low business value, and lack of proper profit model is needed.

Services for users aged between 25 and 35 are stars

For users aged between 25 and 35, who are regarded by advertisers because of high consumption power, Internet is their first media at office. These people are in an important stage of life and pay much attention in work, real estate, marriage, parenting and shopping. New medias should improve information of above industries to increase user stickiness and attract more advertisers.

Services for users over 35 are of great potential

Users over 35, who are of high incomes, don¡¯t frequently use new medias. But services they are interested in are of high business value, such as financial, trade, travel, health and luxury.


Business Value of Users by Age for New Medias




In a word, as a representative of new media, Baidu has grasped high business value users. iResearch suggests that new medias should improve their product structure to meet users requirement in different stage of life to increase user loyalty.

Baidu Partners With Haier For Television Service Baidu Partners With Haier For Television Service(0)

Baidu and Haier have announced plans to enter a strategic cooperation to jointly promote online media television services. According to their agreement, Baidu will provide Internet services and technology support such as search and online community to Haier’s online television scheme, which enables Chinese television users to access Baidu’s services with a remote control.

Baidu is aiming at making its brand ubiquitous among traditional desktop computer users and those users who traditionally would not have access to the search engine’s features. Baidu previously began a strategic cooperation with Nokia which enabled Chinese users to use mobile phones to enjoy Baidu’s search services in the palm of their hands. In 2008, the company launched voice search via telephones.

Source : Chinatechnews

Baidu.com Allies With 15 Broadcasting Stations Baidu.com Allies With 15 Broadcasting Stations(0)

The Radio Alliance service is currently available under Baidu’s MP3 Channel and through it users can search for and listen to real-time programs of radio stations in different parts of the country. The first batch of Baidu’s partners on this service are mainly music program providers.

In addition, Baidu will continue to develop more functions for the service, such as downloading, program ordering and program scheduling. A representative from Baidu says they will continue to develop more partners for the service and may cooperate with famous broadcasting service providers from both home and abroad.

Source : Chinatechnews

Kingsoft Joins Hands With Baidu To Offer Free Anti-virus Service Kingsoft Joins Hands With Baidu To Offer Free Anti-virus Service(0)

The newly launched BSC is said to offer security ratings for systems in a way similar to Vista scoring to remind users of conducting necessary operations to kill viruses or upgrade their computer, as well as to provide online security services to them.

The parties have not considered a profit-making pattern for the new service, but they say that they won’t charge a fee from users. In November 2006, Kingsoft cooperated with Baidu on launching shadu.baidu.com, which was one of the first third-party anti-virus platforms in China.

Source : Chinatechnews

Sina.com To Build New Internet Real Estate Portal In China Sina.com To Build New Internet Real Estate Portal In China(0)

“This partnership is an extension of Sina’s pursuit to provide the best quality content and services to high-end Internet users in China by co- operating with industry leaders in vertical areas,” said Charles Chao, president and CEO of Sina. “E-House not only brings to the partnership an expansive database of localized real estate data, a must-have for anyone considering a real estate transaction in China, but also lends valuable industry insights and a nationwide network of real estate developers that will be instrumental in building the largest real estate portal in China.”

Sina is spinning off its real estate channel and home decoration channel and contributing the related online advertising business into the new company, while E-House is providing exclusive license of its proprietary CRIC database to the new company and will develop certain online products and related fee-based services for the new company. Sina is the majority shareholder of the new company, though neither side has stated the exact composition of those shares.

Xin Zhou, CEO of E-House, said, “Our joint venture with Sina represents an important step to realize the commercial potentials of the database and will allow millions of real estate consumers in China easy and immediate access to valuable information. Partnering with an Internet leader like Sina is clearly a winning choice, as Sina can provide an existing, strong footprint in China’s real estate industry as well as unmatched brand recognition, huge portal traffic and high-end user base.”

Source : Chinatechnews

Google Goes Into China’s Online Music Market Google Goes Into China’s Online Music Market(0)

This is the first time that Google has come into China’s online music market. Google will offer online trial listening and downloading of music provided by top100.cn, an online music website established by basketball star Yao Ming, Yao’s agent Zhang Mingji and music professional Cheng Ge.

Google is also said to provide songs of over a dozen music companies and it will also try to win some income from the service through advertising.

Music search is one of the most successful businesses for Baidu.com which has accounted for 60% of the market share in China. Google has been seeking cooperation with local companies on the related service to make a breakthrough in the field.

Source : Chinatechnews

Baidu Launches Japanese Internet Search Engine Baidu Launches Japanese Internet Search Engine(0)

Baidu announced its intentions to enter the Japanese search market in December 2006 and began server testing in Japan in March 2007.

‘Japan is one of the world’s most connected societies, and we have already seen positive reception from local users using our beta website,’ said Masuda Jun, vice president of Baidu’s Japanese subsidiary, in a press statement. ‘Following the formal launch of our Japan site, we expect to see even greater user reception to the four different Japanese language services we will offer, including web search, image search, video search and blog search services.’

Source : Chinatechnews

VODone Establishes Marketing Partnerships With Tencent, Baidu VODone Establishes Marketing Partnerships With Tencent, Baidu(0)

VODone Telemedia, VODone’s local partner, will provide Tencent official video clips and other content such as articles, photos and promotion materials relating to the show for broadcasting on the Internet. Tencent agreed to set up the Water Margin theme webpage, posting different types of information including the synopsis of the TV series.

According to the terms of the agreement with Baidu, the Chinese search engine will launch a theme webpage to document all relevant news and events about the show and the TV series.

‘We are proud to be joining hands with different media to produce this casting polling show and TV series and we believe the potential business impact to the company is tremendous,’ said an official at VODone in a press release. ‘Through these events, on top of being able to derive substantial sponsorship revenue as well as generate direct revenue from polling via internet and mobile phones, the much enhanced brand profile will increase web traffic and page view and in turn, help our core internet advertising business.’

Source : Chinatechnews

Baidu Mourns Passing Of CFO Shawn Wang Baidu Mourns Passing Of CFO Shawn Wang(0)

‘We are all completely shocked and deeply saddened by this tragic news,’ said Robin Li, Baidu’s chairman and CEO, in a prepared statement. ‘Shawn’s leadership and vision helped transform Baidu into a leading US public company, and his presence will be greatly missed. Shawn was not only a tremendous leader within our company, but also a wonderful friend to us all. We extend our deepest sympathy and most sincere condolences to Shawn’s family.’

The company says Wang’s duties will be assumed on an interim basis by the senior management team, including the senior finance personnel, until a successor is appointed.

Wang joined Baidu as its chief financial officer in September 2004, helping lead the company through its successful initial public offering on NASDAQ in August 2005.

Source : Chinatechnews

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