Increase in Costs Cuts Profits for Baidu
The increased revenue of Baidu was counter balanced with the drop in the Q3 profits due to mounting costs. Baidu Inc reported a dip in profit by twenty seven percent.
For the ongoing quarter, the forecasted revenue by the company was 18.20 billion to 18.75 billion yuan. That fell short of the analysts' prediction of 18.88 billion yuan.
One of the spokes persons of the company said before the earnings report that the forecast by the analysts' might not have taken into account the deal that was announced on Monday which connects online travel services Ctrip. com International Ltd. and Qunar Cayman Islands Ltd.
It's a share swap plan where, Ctrip. com would take forty five percent stakes in Qunar from Baidu. On the other hand Baidu will be issued new shares by Ctrip which will represent almost twenty five percent stakes. Baidu has stopped consolidating the financial results of Qunar.
The American depositary shares of the company scaled 6.5% to $180 during the afterhours trading.
The leading Chinese search engine, Baidu, has been oflate spending large amounts to win a chunk of the online-to-offline market share. The services connect the online customers to the offline services like food delivery and other group buying.
- Virginia lawmakers remain committed to ban Skill Games next year
- Long-time employee Mary Harville becomes Kentucky Lottery’s first female CEO
- iSoftBet’s much-anticipated new Western Gold Megaways video slot launched fully
- Las Vegas Convention & Visitors Authority to acquire Las Vegas Monorail for over $24 million
- Leading investment bank ‘unsure’ about upcoming Resorts World Las Vegas Casino’s success