China's third-biggest Web portal Sohu.com Inc yesterday reported faster than expected earnings in the second quarter of this year thanks to robust advertising sales backed by the Beijing Olympic Games.
Its net income surged 605 percent to US$40.2 million, or US$1.02 per share, in the period on a yearly basis, the Nasdaq-listed company said in a statement on its Website yesterday.
Revenue jumped 162 percent to US$102 million in the quarter, beating the company's estimates by US$6 million, according to the statement.
Sohu's advertising revenue grew 53 percent to US$43.4 million and brand advertising income gained 57 percent to US$41.7 million, it said.
Its non-advertising revenue, mainly derived from online games and wireless value-added services, jumped 452 percent to US$58.6 million, among which online games made up US$47.9 million in revenue, up 11.5 times on a year ago.
"We are very satisfied with the excellent result for the second quarter as Sohu's quarterly revenue exceeded US$100 million for the first time," said Charles Zhang, chief executive officer of the Beijing-based Website.
The company attributed the approach of the Olympic Games to its strong advertising business growth.
Sohu operates the official Website for the Beijing Olympics organizing committee and is the first Chinese online media company to win access to premier Olympic content.
Three other Chinese Websites - Sina.com, Tencent Inc and NetEase.com - have also gained the right to report on the Games.
Sohu expects that its third-quarter sales would reach US$112 million to US$116 million, with advertising income ranging between US$48.5 million and US$50.5 million.
It also plans to submit to the US Securities and Exchange Commission a draft about an initial public offering of its online games unit, Changyou.com Ltd. The number and price of shares for the IPO of the online games unit haven't been determined, the statement said yesterday.
(Shanghai Daily July 29, 2008)
