China search engine Baidu plans US$1.0b share buy-back

[SHANGHAI] Chinese search engine Baidu, listed on the US Nasdaq market, said on Thursday it is planning a US$1.0 billion share buy-back programme over the next 12 months.

The announcement comes after the firm, which is often compared to Google, on Monday announced disappointing second-quarter results, sending shares plunging.

Baidu's profit for the second quarter came in at 3.66 billion yuan, up slightly from 3.55 billion yuan in the same period a year earlier but below forecasts.

Baidu said in a statement its board had authorised share repurchases of up to US$1.0 billion, which would be funded through its existing cash balances.

Baidu stock rose 1.18 per cent to US$170.01 on Wednesday, according to Nasdaq, putting its market capitalisation at just under US$60 billion.

Besides its core search business, Baidu has been investing heavily to provide services through the Internet, including food delivery and movie ticket booking.

AFP