Chinese Internet search engine Baidu.com (BIDU) says its total revenues doubled for the second quarter ended June 30, 2007.
"During the second quarter, we saw robust revenue growth and a healthy increase in online marketing customers," said Robin Li, Baidu's chairman and CEO. "These results reflect the successful implementation of strategic improvements made over the last two quarters and a growing recognition by Chinese businesses that Baidu's online marketing platform is a highly effective way to reach consumers."
Total revenues in the second quarter of 2007 increased to CNY401.3 million, representing a 109.4% increase from the corresponding period in 2006. Net income in the second quarter of 2007 increased to CNY141.9 million, representing a 142.7% increase from the corresponding period in 2006.
Traffic acquisition costs as a component of cost of revenues was CNY44.9 million, representing 11.2% of total revenues, compared to 9.2% in the corresponding period in 2006. The increase in TAC as a percentage of total revenues primarily reflects the continued growth of revenue contribution from Baidu Union members.
Operating profit was CNY129.0 million, representing a 122.4% increase from the corresponding period in 2006. Operating profit excluding share-based compensation expenses was CNY137.8 million for the second quarter of 2007, a 97.7% increase from the corresponding period in 2006.
As of June 30, 2007, Baidu's cash, cash equivalents and short-term investments amounted to CNY1.3 billion. Net operating cash inflow and capital expenditures for the second quarter of 2007 were CNY277.0 million and CNY99.1 million, respectively.