Chinese search engine leader Baidu Inc booked a 1per cent rise in quarterly revenue, beating market estimates, and said it will buy streaming platform YY Live from social media firm JOYY Inc for about US$3.6 billion to help diversify revenue sources. FILE PHOTO: A logo of Baidu is seen at the company's headquarters in Beijing, following the novel coronavirus disease (COVID-19) outbreak, China May 18, 2020. REUTERS/Tingshu Wang 17 Nov 2020 12:30PM Share this content Bookmark
REUTERS: Chinese search engine leader Baidu Inc booked a 1per cent rise in quarterly revenue, beating market estimates, and said it will buy streaming platform YY Live from social media firm JOYY Inc for about US$3.6 billion to help diversify revenue sources.
Baidu earns the bulk of its revenue from advertising sales on its core search platform. Ad spending hit lows earlier this year during COVID-19 lockdowns but has picked up in tandem with an economy which, in September, saw retail sales gain and industrial output exceed market expectations. Advertisement Advertisement
"Our revenue growth turned positive in the third quarter," said Chief Executive Robin Li in an earnings briefing.
Baidu also benefited from a 7per cent on-year increase in membership revenue at streaming affiliate iQIYI Inc , where subscriber numbers touched 104.8 million in September.
Netflix Inc equivalent iQIYI is under investigation by the U.S. Securities and Exchange Commission after short-seller Wolfpack Research said the video service inflated user numbers, revenue and the prices it pays for content. iQIYI dismissed Wolfpack's comments as erroneous and unsubstantiated.
Overall, Baidu's July-September revenue hit 28.23 billion yuan (US$4.29 billion). That compared with the 27.45 billion yuan analyst estimate average, showed IBES data from Refinitiv. Advertisement Advertisement
The firm said it expects October-December revenue of 28.6 billion yuan to 31.3 billion yuan, versus analyst estimates of 28.98 billion yuan.
Baidu's U.S.-listed shares ended Monday trade up 1.9per cent.
(Reporting by Ayanti Bera in Bengaluru and Yingzhi Yang in Beijing; Editing by Arun Koyyur and Christopher Cushing) Source: Reuters
This data comes from MediaIntel.Asia's Media Intelligence and Media Monitoring Platform.
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