Baidu’s revenue sink to four-year low
Baidu, Chinese search engine reported that its first-quarter net profit dropped to the lowest value since 2012 and profits surged at the slowest tempo for up to seven years.
The Chinese Internet stalwart informed that it expected profit growth to dip even further during the April-June quarter to about 21.3-24.2%, thus underscoring the whole importance of its vigorous efforts to diversify away from its primary search business.
The company’s strategic reassessment for recent month has suggested selling off its online travel unit as well as considering an offer video streaming website. It’s definitely closely connected with China’s economic slowdown. However, Baidu’s effort hasn’t paid off. Moreover, even costs keep rising rapidly.
The company’s net income dropped 19%, from last year’s outcome of 2.45 billion Yuan to 1.99 billion Yuan during the January-March quarter. Baidu was expected to post to report a net revenue sag of 17% to about 2.03 billion Yuan.