shares in Baidu Inc. (BIDU) was indicated higher in the trading market Friday after Chinese focused search engine operator had stronger than expected earnings in the fourth quarter and adhered to its long-term earnings guidance despite the broad slowdown in the world's second largest economy.
Baidu said the adjusted earnings for the three months ending in December were lost to 13.18 yuan per annum. US $ 1.96, based on the US listing listing, well ahead of the 11.83 Refinitiv estimate. The group sales also peaked the Street forecast, up 22% to 27.2 billion yuan, most (21.5 billion yuan) came from its online marketing business, which includes search and news feeds.
Looking into 201
"2018 was a decisive year for Baidu as we worked to implement AI technologies beyond the search for feed, voice assistant, AI solutions, and autonomous driving, to allow more users, customers, and partners to draw benefit from Baidu's AI, "said CEO Robin Li.
Baidu's US listed shares were marked 2.7% higher in pre-market trading Friday, indicating an opening price of $ 176.45 each, a step that would trim the stock's three-month decline to about 4% . It is the main Chinese rivals, Alibaba Holding Co. (BABA) and Tencent Holdings (TCEHY), which rose 15% and 15.8% respectively during the same period.
Alibaba's online streaming services, Youku, and Tencent's offer, Baidu, are Baidu's biggest competitors in the massive Chinese digital entertainment market.
Baidu said its streaming division, known as iQIYI, added 36.6 million subscribers last year to bring its total to 87.4 million, just over half of Netflix's (NFLX) 146, DKK 5 million Baba said Youku additions increased 64% during the December quarter, while Tencent grew 23% over the months ending October to 154 million.
iQiyi revenue rose 55% in the December quarter, Baidu said to 7 billion yuan, but like Netflix, the cost of buying content for its users increased to 7.3 billion. yuan, up 96% from the same period last year. The bandwidth cost was also higher, rising 27% to 1.8 billion yuan, with the collective numbers eating in Baidu's overall bottom line.