Tech

Baidu revenue up 2% in an effort to cut costs


China's big tech companies have been grappling with economic uncertainty, Covid-19 restrictions and close scrutiny from the public.

China’s big tech companies have struggled with economic uncertainty, Covid-19 restrictions and close scrutiny from regulators in recent months.

Chinese internet giant Baidu reported third-quarter revenue of 32.5 billion yuan ($4.6 billion), up 2% year-on-year.

Its income statement shows that Baidu posted a net loss was 146 million yuan in the three months to September as it controlled costs and cut losses much deeper than in the comparable quarter last year.

China’s tech majors have struggled in recent months amid economic depressionCOVID-19 restrictive measures have affected consumer sentiment and stricter supervision by regulators.

Earnings reports from internet giants, including Alibaba and JD.com, have presented a mixed picture in recent weeks.

“Baidu Core delivered a series of solid financial and operating results in the third quarter, despite continued challenges posed by the resurgence of COVID-19,” said Chief Executive Officer Robin Li.

The core business “has continued to grow positively, thanks to the gradual recovery of our online marketing business and steady growth in revenue from our AI Cloud,” Li said. Li said, praising “significant progress in intelligent driving”.

Going forward, we expect our mobile ecosystem to continue to generate strong cash flow and fund our investment in the AI ​​Cloud and smart driving, which will help. .. driving long-term business growth,” he said.

Beijing-based Baidu reported a third-quarter loss of 16.6 billion yuan last year, although revenue rose 63 percent year-on-year to 31.9 billion yuan at the time.

The company operates China’s largest online search engine, which in recent years has diversified into artificial intelligence, cloud computing and autonomous driving technologies as ad revenue remains sluggish.

mixed bag

Beijing has carried out a far-reaching crackdown on tech industry since the end of 2020 as part of efforts to limit monopolistic practices and promote competition between internet platforms.

But the strategy of record fines, burned IPOs and probes of big companies have hit revenue and put additional strain on the ailing economy.

E-commerce giant Alibaba last week posted a loss of 20.6 billion yuan in the third quarter, which was partly due to a “fall in the market price of China’s equity investments.” We’re into publicly traded companies.”

Rival JD.com reported an 11% increase in sales year-over-year, although neither platform has released full sales figures for this month’s “Singles Day” shopping. , which is considered a measure of Chinese consumer sentiment.

Despite recently announcing an easing of coronavirus policies, some Chinese authorities have persisted with a zero-tolerance rapid lockdown that has disrupted business in some areas.

© 2022 AFP

quote: Baidu revenue up 2% amid cost-cutting efforts (2022, Nov 22) accessed Nov 23, 2022 from https://techxplore.com/news/2022-11-baidu-revenue -cost-cutting.html

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