Chinese web portal Sohu reports Q1 profit fall

Chinese Web portal said Tuesday that its first-quarter profit fell 7 percent as increased operating expenses overshadowed revenue growth.

For the three months ending March 31, Sohu earned $41.3 million, compared with $44.6 million in last year’s first quarter.

Excluding Sohu’s noncontrolling interest in the online gaming company Changyou, the company earned $30.2 million, or 73 cents per share, compared with a profit of $44.6 million, or $1.15 cents per share, in first quarter a year ago. On this basis, the results beat estimates of analysts polled by Thomson Reuters by a penny per share.

Revenue rose 12 percent to $129.5 million. Sohu said revenue from online games climbed 17 percent to $72.1 million, while advertising revenue rose 4 percent to $42.3 million.

Analysts were expecting $128.2 million in revenue.

But Sohu’s operating expenses rose 27 percent to $48.5 million, as sales and marketing expenses climbed.

For the current quarter, Sohu forecast revenue of $139 million to $144 million, while analysts are expecting $140.4 million.

Associated Press