SAN FRANCISCO, Oct 27 — China’s leading Internet search company Baidu Inc warned that the transition to a new advertising technology would crimp revenue in the current quarter, sending shares plunging 11 per cent.
Baidu yesterday forecast revenue in the fourth quarter to range between US$174 million (RM592 million) and US$180 million, below the average analyst estimate of US$204.7 million, according to Thomson Reuters I/B/E/S.
The company said it expects moderate year-over-year growth in the fourth quarter due to the “temporary negative impact” anticipated from discontinuing its Online Marketing Classic Edition.
Baidu said it would complete the switch to its Phoenix Nest advertising bidding system on December 1.
Revenue in the three months ended September 30 totalled US$187.3 million, a tad below the average analyst estimate of US$189 million but higher than the 135.4 million a year-earlier.
Third-quarter net income rose to US$72.2 million, or US$2.07 a share, from US$51.2 million, or US$1.47 a share, in the same period last year.
Shares of Baidu fell 11 per cent to US$385.02 in afterhours trade yesterday. — Reuters
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