By Kosaku Narioka
Baidu is scheduled to report its second-quarter results on Tuesday. Here is what you need to know:
NET PROFIT FORECAST: Baidu is expected to post a 44% increase in net profit from a year earlier to 5.24 billion yuan ($719.6 million) for the quarter ended June 30, according to a poll of analysts by FactSet. That compares with a net profit of CNY3.64 billion a year earlier.
REVENUE FORECAST: Second-quarter revenue is estimated to have increased 14% from a year earlier to CNY33.91 billion, according to the FactSet poll.
WHAT TO WATCH:
–ONLINE MARKETING: The number of monthly active users for its flagship Baidu app rose 4% from a year earlier to 657 million in March. Revenue from its online marketing services in the first quarter grew 6.2% from a year earlier to CNY17.97 billion, but dropped 8.2% from the previous quarter. Investors are focusing on trends for online marketing revenue as the Chinese economy slows.
–VIDEO STREAMING: Operating income from Baidu’s iQIYI video-streaming service climbed sharply to CNY859 million in the first quarter from CNY94 million a year earlier, as the average daily number of total subscribing members increased 28% to 129 million. Investors are closely watching the pace of growth for this key segment.
–ROBOTAXI: Baidu’s Apollo Go autonomous ride-hailing service provided about 660,000 rides in the first quarter, more than triple from a year earlier and up 18% from the previous quarter. Investors are paying attention to the latest updates from its robotaxi business.
Write to Kosaku Narioka at [email protected]
Read the full article here
