FILE PHOTO: A sign of Baidu is seen at the glass in his booth at Digital China, exhibition in Fuzhou, Fujian province, China, May 5, 2019. REUTERS/Stringer
(Reuters) – China’s search engine operator, Baidu Inc. reported a better-than-expected quarterly revenue and profit on Thursday as more people signed up for the video streaming service, sending shares up 8 percent in extended trading.
The revenues from iQIYI jumped from 15% to 7.11 billion yuan ($1.01 billion) in the same way as the service crossed the 100 million subscriber mark in June of this year, in spite of strong competition from rivals, including the ByteDances the TikTok.
Online, marketing, services, business and sales, a major contributor to the total revenue, was down 9% to 19.2 billion yuan and came in below estimates, hurt by the impact of a long-term trade, war, and a tighter advertising rules by the government.
The total turnover rose to 26.33 billion yuan ($3.73 billion) of 25.97 billion yuan, a year earlier, beating an estimate of 25.77 billion yuan, according to IBES data, Refinitiv.
Excluding items, Baidu earned 10.11 yuan per American depositary share. Analysts had expected to 6.12 yuan per ADS.
Report by Ayanti Berra, Bengaluru and Yingzhi Yang in Beijing; Editing by Bernard Orr and Anil D’silva