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Baidu revenue climbs while profit slips
[SAN FRANCISCO] Baidu on Wednesday reported that its quarterly profit slipped despite revenue jumping more than a third on strong use of smartphones to access the service.
Revenue for the quarter that ended on March 31 was US$2.053 billion in a 34 per cent leap from the same period a year earlier, according to the Beijing-based Internet giant.
Net income was US$395.1 million in a 3.4 per cent drop from the same quarter in 2014, earnings figures showed.
Baidu shares dipped more than two percent to US$213.75 in after-market trades on the Nasdaq that followed release of the earnings figures.
Mobile revenue accounted for half the money taken in by Baidu in the recently ended quarter in a 42 per cent increase from the same period last year.
"Mobile's tremendous momentum continued this quarter, with mobile contributing 50 per cent of total revenue," Baidu chief executive Robin Li said in a release.
"Baidu's platform is comprehensive and robust, and we plan to fully exploit the huge growth potential ahead.
Baidu brings in most of its revenue from ads served up along with search results, and has made a priority of tuning its offerings to smartphones and tablets as Internet lifestyles go increasingly mobile.