Sales figures of Chinese search giant Baidu came along today reflecting a 4.5 percent YoY decrease in net profit to RMB2.64 billion ($430.8 million) for Q2, 2013, while revenue has increased about 38.6 percent to RMB7.56 billion ($1.23 billion) compared to same period.
In this quarter company added 58,000 new customers facing intense market competition mainly the newbie Qihoo which has diluted the market share of giant from 80 percent to 70 percent, credit mainly goes to their steep promotional expenditure.
On this event CEO Robin Li noted that mobile revenues account for 10 percent of total revenues indicating Baidu’s focus on mobile sector with aggressive investments and acquisitions in mobile sphere latest being of 91 Wireless for $1.9 billion, which is starting to show good results and is expected to continue in future as CFO Jennifer Li said: “We will continue to invest aggressively and remain committed to building long-term value for our shareholders.”
Company is already in process of buying PPS Video for $370 million, and already owns majority stake in iQiyi so Baidu could soon be China’s biggest video provider.
While Baidu is busy shopping news is Qihoo is in talks to buy third-ranked search engine Sogou which could be a huge turning point for Qihoo in gaining market repute.