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Sohu announced today that they posted net income of $41.3 million in the first quarter of 2010, including net income from the company's non-controlling interest in online game developer and operator Changyou. Sohu’s net income was down 3% quarter-on-quarter and 7% year-on-year in the first quarter.
Total revenues fell 5% sequentially but rose 12% annually to $129.5 million in the period, exceeding company guidance. Brand advertising revenue was within company guidance at $39.5 million, down 14% from the previous quarter but up 1% year-on-year. The company is optimistic that its brand advertising business will accelerate as advertisers ramp up promotional campaigns ahead of the World Expo and World Cup, Sohu Co-President and COO Belinda Wang said.
Online games revenues accounted for $72.1 million of total revenue, up 17% annually and 2% sequentially. Sohu's wireless business generated revenue of $13.3 million in the quarter, a decrease of 15% quarter-on-quarter and 1% year-on-year.
Sohu forecast total revenues for the second quarter of 2010 in the range of $139 million to $144 million, with advertising contributing $54 million to $56 million of total revenues. Brand advertising is expected to bring in between $51 million and $53 million in the second quarter, while online game revenues are forecast to come in between $74 million and $77 million.
Sohu estimates non-GAAP net income for the second quarter of 2009 to be between $48 million to $50.5 million, including net income from Changyou.
Additional Sources: JLM Pacific Epoch
Written on Monday, 26 April 2010 20:02 by Matt McDougall
