Baidu.com, Inc. , the leading Chinese language Internet search provider, today announced its unaudited financial results for the first quarter ended March 31, 2008(1).
This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the
reader. Unless otherwise noted, all translations from RMB to U.S.dollars are made at a rate of RMB7.0120 to US$1.00, the effective noon buying rate as of March 31, 2008 in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York.
Total revenues in the first quarter of 2008 increased to RMB574.4 million (US$81.9 million), representing a 108.4% increase from the
corresponding period in 2007.Operating profit in the first quarter of 2008 increased to RMB147.4 million (US$21.0 million), representing a 99.6% increase from the corresponding period in 2007.Net income in the first quarter of 2008 increased to RMB146.6 million (US$20.9 million), representing a 71.5% increase from the corresponding period in 2007. Diluted earnings per share (“EPS”) for the first quarter of 2008 were RMB4.22 (US$0.60); diluted EPS excluding share-based compensation expenses (non-GAAP) for the first quarter of 2008 were RMB4.68
“This was another excellent quarter for Baidu,” said Robin Li, Baidu’s chairman and CEO. “Our revenue growth remained strong and is an indication of our ability to execute our strategy of providing the best possible user experience and service to our customers. Instrumental to our growth were the ceaseless efforts of our sales force and customer service teams who continued to deliver strong results despite a long Chinese New Year holiday and severe snow storms across large parts of China. In addition, a larger customer base contributed to strong organic and Baidu Union growth.”
During the first quarter Baidu launched the public testing of Baidu Hi, an instant messaging platform complementing Baidu’s suite of other already popular products such as Baidu Knows, Baidu Post Bar and Baidu Space. Initial results indicate a positive response to the new product. Baidu also recently signed an agreement with China Netcom (CNC). Under the agreement, Baidu and CNC created a jointly designed Baidu search page that CNC users are redirected to if they attempt to visit an incorrect or nonexistent URL. This arrangement allows CNC Internet users to find information they need more efficiently while increasing Baidu user traffic in a revenue sharing model.