Baidu quarterly revenue beats estimates, to buy JOYY’s live streaming unit in China
- The company’s total revenue rose 1 per cent to 28.23 billion yuan (US$4.29 billion) in the quarter
- As China’s economy gradually emerges out of the Covid-19 slump, ad spending by businesses has picked up from lows during the peak of the pandemic
China’s Baidu reported third-quarter revenue above market expectations on Monday and said it would buy social media platform JOYY Inc’s video-based live streaming business in China for about US$3.6 billion.
The company said through the deal it aims to diversify its revenue source, the bulk of which comes from ad sales on its core search engine platform.
Baidu’s vibrant mobile ecosystem enables the fast growth of its non-advertising revenue by increasing log-in users and expanding offerings like membership, live streaming and online games, Chief Executive Officer Robin Li said in a statement.
The company benefited from higher paid subscribers on Baidu’s video streaming service iQIYI and a recovery in ad spending by businesses on its core search engine platform in the quarter.
As China’s economy gradually emerges out of the Covid-19 slump, ad spending by businesses has also picked up from lows during the peak of the pandemic. In September, China’s industrial output rose faster than expected and retail sales gained.
The company said it expects current-quarter revenue to be between 28.6 billion yuan and 31.3 billion yuan compared with estimates of 28.98 billion yuan.