Wen / spa
July 29th, Baidu (NASDAQ:BIDU) announced the second quarter ended June 30th unaudited financial report for the year to 2016. The report shows, the company total revenue for the quarter was 18 billion 264 million yuan ($2 billion 748 million), an increase of 10.2%; according to U.S. GAAP meter (GAAP), net profit of 2 billion 414 million yuan ($363 million 200 thousand), down 34.1%. According to Reuters statistics, this is Baidu’s last eight years, the largest decline in net profit for the first quarter.
overall, this is due to the slowdown in revenue growth caused by Baidu. From the revenue point of view, Baidu’s total revenue for the quarter was 18 billion 264 million yuan, an increase of 10.2%; other income of RMB 329 million yuan, down by 39.58%. Overall revenue growth was significantly lower than the same period last year, Baidu’s total revenue over the same period last year, an increase of 38.3% over 2014.
from the point of view of expenditure, the total operating costs and expenses of 15 billion 397 million yuan, an increase of 17.5%. Compared with the same period last year, spending growth has slowed considerably over the same period last year, compared with the previous year, the total operating costs and expenses increased by 55.51%.
Baidu revenue slowdown, mainly due to the incident and Baidu post bar event. Prior to this, in June 13th, Baidu announced a quarterly revenue forecast in the SEC announcement, said regulators on the health care industry and related advertising review, is affecting the company’s advertising revenue.
this is probably the most difficult time in recent years Baidu. On the one hand, due to tighter regulation, accounting for a considerable share of Baidu’s share of medical advertising suffered heavy losses, and difficult to recover in the short term. This includes the rectification after the incident, as well as Baidu recently stopped sticking to the business cooperation;
on the other hand, a large number of Baidu’s new business has not yet harvested huge profits. Artificial intelligence, automatic driving, Baidu finance, Baidu Nuomi, Baidu takeaway, Baidu, Baidu, etc. are potential future business, but for the time being, these businesses are still in the investment phase.