Baidu Profits in Second Quarter Offset by Higher Expenses
Although higher expenses took a toll on the overall earning in the second quarter, the profits of the Baidu increased 3.3%.
Baidu Inc. the Chinese search giant says that it will continue spending in order to promote its development into linking its online consumers with offline services like group buying, food delivery along with other related services.
Jennifer Li, Chief Financial Officer of Baidu said the company looks forward to boost spending in order to support the initiatives in O2O or online to offline businesses. Companies like Baidu in China have been spending a lot for providing subsidies which attract users.
On Monday, during after hour trading in New York shares of Baidu dropped six percent or more.
Ms. Li expects the administrative, selling and general expenses to go up almost 80 to 90 percent in the second half of the year as compared to the initial half. Earlier the company had said that it expected the costs to increase almost fifty percent in the current year as compared to the last one.
Acording to Ms. Li, the offline offerings by including, restaurant bookings, food-delivery services as well as car-hailing are "ready for the prime time." She said the company is "very encouraged by the momentum."
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