Beijing-based Internet portal Sohu.com posted its first quarterly profit of US$112,000 for the three months through September. In the previous corresponding period, Sohu reported a net loss of US$3.1 million. But the net loss narrowed to US$870,000 in the April to June quarter. Earnings per share for the quarter were 0.3 US cent. With the firm now turning a profit, chief financial officer Derek Palaschuk said Sohu's share price did not reflect the company's value and that it planned to spend US$2 million to buy back its shares in the near future. It took the portal operator three years to reach profitability, but it reached that target one quarter earlier than scheduled. Mr Palaschuk thanked a sharp surge in non-advertising revenue gathered from fee-based mobile commerce and content subscription fees from users, as well as controlled operating costs, for helping the company into the black. 'More and more domestic companies are embracing the Internet and are aware that the Internet is becoming a mass medium they need to use to reach their consumers,' he said. 'We love competition, because it pushes them [domestic companies] to spend more on advertising as they are fighting for consumers.' It expects non-advertising revenue to to be US$4.5 million in the fourth quarter while advertising revenue is expected to remain flat at US$3.7 million.