Earnings: Sohu Q3 Revs Continue To Climb, Rising 134 Percent; Profits Up 316 Percent
This story was written by David Kaplan.
Chinese portal Sohu.com's growth rate is hardly slowing, as the Beijing company posted Q3 GAAP net income of $40.3 million ($1.02 per fully diluted share) for a 316 percent year-over-year gain, though it was essentially the same dollar amount as in Q208. Revenues were $120.7 million, up 134 percent year-on-year and 18 percent quarter-on-quarter, exceeding the high end of company guidance by $4.7 million, the company said. Much of that boost came in concert with the Beijing Olympic games. While the company remains confidentat least in the press releasethat it can maintain this kind of growth into Q4 as even China's economy starts to slow due to the global economic crisis, that remains an open question. In terms of specific highlights from Q3:
-- Brand ad revenues were up 66 percent to $49.4 million, while general ad revenues were $51.1 million, gaining 62 percent year-over-year.
-- Online game revenues came in at $54.6 million, up 330 percent from Q307. In particular, Sohu's in-house developed massive multiplayer online role-playing game Tian Long Ba Bu ("TLBB") generated revenue of US$51.0 million, up a sequential 12 percent from Q208.
-- Non-advertising revenues $69.5 million, up 248 percent from last year.
By David Kaplan