Baidu shares dip as quarterly revenue slips
San Francisco (AFP)
Shares of Baidu slipped on Thursday after the Chinese internet giant reported a quarterly drop in revenue.
Total income in the recently ended quarter came to $2.7 billion (18.25 billion RMB), down a fraction of a percent from the same period the previous year, the company reported.
Baidu said it expects a drop in revenue during the current quarter as well, ranging from 1.7 percent to 4.6 percent compared to the final three months of last year.
However, profit for the quarter that ended on September 30 was up 9.2 percent to $465 million (3.1 billion RMB) in a similar comparison, according to the earnings report.
The unprecedented revenue drop came as Baidu is under pressure to shun ads making dubious claims, especially related to health care offerings.
"We continue to enhance user experience by taking proactive measures to raise customer quality and foster a healthier industry environment," Baidu chief financial officer Jennifer Li said in the release.
Baidu shares were down more than two percent to $171.40 in after-market trades following the earnings figures release.
The growing popularity of a Baidu news feed provided a bright spot during the quarter, chief executive Robin Li said in the release.
The portion of Baidu's revenue coming from mobile device users rose to 64 percent in the quarter from 54 percent during the same period last year, the company said.
© 2016 AFP