FILE PHOTO: A employee uses his mobile phone as he walks past the company logo of Baidu at its headquarters in Beijing, August 5, 2010. REUTERS/Barry Huang/File Photo

November 16, 2020

(Reuters) – China’s Baidu Inc <BIDU.O> reported third-quarter revenue above market expectations on Monday and said it would buy JOYY Inc’s <YY.O> video-based live streaming business in China for about $3.6 billion, sending its shares up marginally after the bell.

The quarter benefited from higher paid subscribers on Baidu’s video streaming service iQIYI <IQ.O> and a recovery in ad spending by businesses on its core search engine platform.

As China’s economy gradually emerges out of the COVID-19 slump, ad spending by businesses have also picked up from their lows during the peak of the pandemic. In September, China’s industrial output rose faster than expected and retail sales gained.

Subscribers for iQIYI reached 104.8 million in September and membership revenue rose 7%, from a year earlier, as the pandemic strengthened the consumer shift to streaming platforms from cable or satellite TV.

The company’s total revenue rose 1% to 28.23 billion yuan ($4.29 billion) in the quarter ended Sept.30. Analysts on average had expected revenue of 27.45 billion yuan, according to IBES data from Refinitiv.

(Reporting by Ayanti Bera in Bengaluru; Editing by Arun Koyyur and Shailesh Kuber)

You Might Like
Learn more about RevenueStripe...