Business
        

Technology

Baidu sees growth rate slowing in 2011

Updated: 2010-12-16 09:33

(Agencies)

Twitter Facebook Myspace Yahoo! Linkedin Mixx

SHANGHAI/BEIJING - A senior executive of China's top search engine, Baidu Inc, forecast its top-line and bottom-line growth rates to moderate over the next year, sending its shares down six percent on Wednesday, said a Reuters report.

Haoyu Shen, Baidu's senior vice-president of business operations, said that after this year's fast-paced growth the company will face tougher comparisons in 2011, although it would seek to grow through acquisitions and new advertising methods.

Baidu's third-quarter net profit more than doubled compared with a year ago, while its revenue almost doubled.

"We had a major re-acceleration this year, and that's due to a few reasons," said Shen, citing the rebound in the Chinese economy, the switchover to its new keyword advertising system and Google Inc's scaling down in China.

He said Baidu's strong performance so far this year was also due to the introduction of its Phoenix Nest keyword advertising system late last year, which was ramped up fully this year.

Related readings:
Baidu sees growth rate slowing in 2011 China Mobile to take on Baidu with search engine
Baidu sees growth rate slowing in 2011 Baidu pledge signals crackdown on copyright thieves
Baidu sees growth rate slowing in 2011 Baidu may be sued for copyright infringement

The system has enabled Baidu to make money from its clients as well as offer more value added services.

Shen said traffic acquisition costs as a percentage of revenue will come in near 10 to 11 percent for 2010.

He declined to give a forecast for next year.

E-paper

Ear We Go

China and the world set to embrace the merciful, peaceful year of rabbit

Preview of the coming issue
Carrefour finds the going tough in China
Maid to Order

European Edition

Specials

Mysteries written in blood

Historical records and Caucasian features of locals suggest link with Roman Empire.

Winning Charm

Coastal Yantai banks on little things that matter to grow

New rules to hit property market

The State Council launched a new round of measures to rein in property prices.

Top 10 of 2010
China Daily in Europe
The Confucius connection