.contact us |.about us
news... ...
Search:
    Advertisement
Sohu looks to profit on rivals' woes
( 2001-07-26 10:57) (7)

As its rivals struggle with difficulties beyond the general malaise plaguing China's Internet portal sector, Sohu.com says it is becoming more attractive to online advertisers.

Chief executive Charles Zhang also said that as Sohu's revenue steadily grows, so does its allure as an acquisition target.

"As we continue to demonstrate the momentum of the results, we become increasingly ... a desirable target for any multinational company," Zhang said in an interview in his Beijing-based firm's Hong Kong office.

Not that selling itself is necessarily Sohu's end-game. Zhang said remaining independent as a leader in China's still-young Internet market also has the potential for boosting shareholder value.

"Great" quarter?

Although Zhang characterized the company's second quarter results released on Tuesday as "great", investors disagreed, knocking 11.5 percent from Sohu's battered shares, which closed on the Nasdaq at $1.46.

While revenue rose 17 percent from the previous quarter to US$2.88 million, the number fell at the low end of analyst forecasts. Non-advertising revenue accounted for 23 percent of revenue, from 15 percent in the first quarter, and Sohu expects non-ad revenue to top 30 percent in the third quarter.

But Sohu posted a pro forma net loss of US$3.3 million, and does not foresee breaking even until the final quarter of 2002.

Zhang said Sohu's revenue momentum and declining costs show that its "path to profitability is becoming ever clearer."

Still, investors have fled China's portal sector, with Sohu and its two domestic rivals Sina.com and NetEase Inc trading at tiny fractions of their 2000 IPO levels. Some investment banks no longer bother covering the sector.

Rough time for rivals

Both of Sohu's chief rivals, meanwhile, have been beset by internal problems.

This week NetEase revealed that it will be kicked-off Nasdaq on Friday morning -- unless it gets an appeal hearing -- for failing to file a 2000 annual report. NetEase has not filed the report as it continues an internal probe into possible misreporting of revenue, and warned that its reported results for 2000 should not be relied upon. Its shares were hammered, falling 24.4 percent on Tuesday to $0.62.

Meanwhile, Sina in June fired its CEO Wang Zhidong, who held a 70-percent stake in the China-based provider of Sina's mainland Internet content.

Wang's subsequent public battle with the company illustrated the perils of China's Internet regulations, which bar foreign-owned firms from controlling Internet content. Those laws have partly deterred what was once expected to have been an influx of overseas interest in the sector.

But Sohu's Zhang said America Online's planned US$200 million joint venture with top mainland PC maker Legend Holdings Ltd shows there is foreign interest in China's Internet market, which numbers roughly more than 20 million users but is expected to mushroom in coming years.

"What happened to NetEase shows how important reporting, transparency (and) financial discipline are to a newly emerged industry in China, and that's where the strength of Sohu is," Zhang said.

Zhang said the troubles of its rivals make Sohu more attractive to advertisers. He said Sohu has also been getting resumes from staff at its competitors.

Ad believer

Zhang espouses a stubborn belief in the viability of an online ad-driven model in China, even though International Data Corp predicts that a measly US$39 million will be spent on such ads this year in China.

"There is a sizeable market out there," Zhang said, noting that IDC expects the figure to bloom to US$215 million in 2004.

"There are not a lot of ways for Chinese people to get information, so the Internet becomes a very important media platform," he said, adding that advertisers in China don't have the many media choices they do in the United States.

"So we will get a large part of that advertising pie."

 
Close  
   
  Today's Top News   Top China News
   
+WHO: Bird flu death rises to 15; vaccination recommended
(2004-02-05)
+Solana: EU ready to lift China arms embargo
(2004-02-05)
+Nation tops TV, cell phone, monitor production
(2004-02-05)
+Absence ... still makes China hot
(2004-02-05)
+Hu: Developing world in key role
(2004-02-04)
+China confident of curbing bird flu: official
(2004-02-05)
+Absence ... still makes China hot
(2004-02-05)
+Department store faces music in copyright case
(2004-02-04)
+Official: Bird flu basically under control in China
(2004-02-05)
+Possible punishment for gay pimps
(2004-02-05)
   
  Go to Another Section  
     
 
 
     
  Article Tools  
     
   
     
 
        .contact us |.about us
  Copyright By chinadaily.com.cn. All rights reserved  
主站蜘蛛池模板: 久久久综合视频| 精品一区二区三区免费视频| 国产精品日韩欧美一区二区三区| 一二三四日本高清社区5| 日本尤物精品视频在线看| 亚洲伊人色欲综合网| 波多野结衣一二区| 免费观看的黄色网址| 老师的胸好大好软| 国产伦精品一区二区三区免.费| 最新精品亚洲成a人在线观看| 天堂网www天堂在线资源| 一边摸一边叫床一边爽| 日本h在线精品免费观看| 久人人爽人人爽人人片AV| 欧美在线色视频| 亚洲欧美日韩中文字幕一区二区三区| 皇上往下边塞玉器见客| 午夜阳光电影在线观看| 老师好紧开裆蕾丝内裤h男男 | 久久精品国产亚洲av电影网| 欧美亚洲校园第一页| 亚洲成a人片在线观看中文动漫| 波多野结衣被躁| 伊人热热久久原色播放www| 米奇777四色精品人人爽| 十六以下岁女子毛片免费| 美国bbbbbbbbb免费毛片| 嘿嘿嘿视频免费网站在线观看| 色精品一区二区三区| 国产亚洲精品精品国产亚洲综合| 香蕉久久精品国产| 国产成人www| 国产极品粉嫩交性大片| 国产男女免费完整视频| 中文字幕日韩精品麻豆系列| 国产精品成人va在线观看| 182福利tv| 国产精品区一区二区三在线播放| 2020国产精品自拍| 国产精品无码久久久久|