Chinese Internet security company Qihoo 360 has published its financial results for the fourth quarter ended December 31, 2011, and the unaudited results for the entire year.
According to the report, Qihoo 360's operating revenue in the fourth quarter of 2011 was USD62.3 million and its net profit reached USD15 million. For the entire year of 2011, Qihoo 360's operating revenue reached USD168 million, an increase of about 191.1% compared with the USD57.67 million in 2010. Meanwhile, its annual net profit was USD15.6 million, an increase of about 83.4% compared with the USD8.51 million in 2010.
By sector, Qihoo 360's Internet advertising business contributed the most to its total revenue. The report said that during the fourth quarter of 2011, its revenue from the Internet advertising sector was USD44.81 million, a year-on-year increase of 217.2% and an increase of 27.8% compared with the previous quarter. The company believed that the enhanced market penetration of its browser and related products, and the increasing user activity were the major driving force for the revenue growth.
At the same time, Qihoo 360's web games business gained remarkable growth since more resources were invested into this sector. The company's Internet value-added service revenue, which was mainly contributed by web games, was about USD17.18 million in the fourth quarter of 2011, which was a year-on-year increase of 227.7% and an increase of 41.8% compared with the previous quarter. The company said that the growth was mainly because of the increase of web game users.
In regards to its future development, Qihoo 360 said that the company is expected to achieve operating revenue of between USD63 million and USD65 million in the first quarter of 2012. However, the expectation only reflects the current estimation of the company, said Qihoo 360, and future adjustment cannot be ruled out.