China's Baidu revenue, profits up on strong traffic growth

28.04.2011
China's largest search engine, Baidu, reported strong revenue and profit growth in the first quarter, driven by "solid traffic growth" and measures to generate more revenue from the company's sites.

Its search engine is already the default for 80 percent of Android phones in China. The company is now testing its own browser, and offers a beta version of its microblogging site as it pursues new opportunities in the country.

Baidu, which operates in a country with 457 million Internet users, reported on Thursday that net profits for the quarter ended March 31 were US$164 million, up by 123 percent from the same quarter last year. The company’s revenue for the quarter was $372 million, up 88 percent from the same period last year.

The company expects revenue in the second quarter to be in the range of $493 million to $504 million, a year-on-year increase of up to 72.4 percent.

Baidu currently has a 75.8 share of China's search engine market, according to Beijing-based research firm Analysys International. Google is a distant second with a 19.2 percent share.

The company expects further growth, as search is now the most used Internet service in China, CEO Robin Li said during a conference call on Thursday.