Chinese search engine Baidu reports a 70% jump in profits

by on July 24th, 2012

Chinese search engine Baidu, has experienced a 70% jump in profits in the second quarter.The firm has seen a net profit of 2.8bn yuan ($436m; £282m) in the three months ending June, and its advertising revenue rose almost 60% during the period to 5.5bn yuan, according to the recent reports.

Baidu CEO and chairman Robin Li said that the firm was likely to see robust growth in the near term.

“In the coming quarters, we will maintain momentum by rolling out optimised sales processes and more advanced tools to help current and potential customers increase returns on their online marketing spend. We will also continue to actively explore the vast opportunities in China’s fast-emerging mobile internet and cloud sectors,” he said.

China has large number of Internet users( around 500m) and that numbers will grow even further in the days to come. More and more companies are using the online medium to advertise their services and reach out to their potential customers.

Baidu stated that the number of businesses that advertised on its portal grew by more than 18% in the second quarter, from a year earlier.

In an effort to boost its revenue, the company is also making efforts to monetize its mobile search traffic and social media platforms. At present, mobile services make up only a small percentage of Baidu’s total revenue. To tap into the country’s fast-growing mobile market, Baidu launched a low-cost smartphone, early this year.

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