Boston, MA 10/29/2013 (wallstreetpr) – The Chinese online game developer and web portal Sohu.com has had a good Q3 run as per revenues. Total revenues equaled $368 million that was a 9% QoQ increase. This can be broken up as Brand advertising revenues ($125 million), Sogou revenues ($57 million) and Online game revenues ($161 million). Sogou works in partnership with the company and has made Sohu.com as its controlling shareholder. Hence the revenue generated by Sogou has significantly contributed to the revenue.
Dr. Charles Zhang, Chairman and CEO of Sohu.com Inc., was happy to state that the Q3 results of the company was satisfying since it provides the company with the right momentum. He also added that the partnership with Tencent where Tencent had invested in Sogou was a very positive development as it was going to boost traffic for Sogou and secure a top place as a contender in PC and Mobile search.
Sogou helped post positive results
The company reported a GAAP net loss of $64.19 million this quarter as against last year’s net income of $25.88 million, which is an earnings loss per share of $1.69. The company has included the earnings of Sogou which is $82 million in its results as a proportionate share. This amount is the result of a special dividend paid by Sogou to the non-controlling preferred shareholders of Sogou on September 17, 2013 as reported by NASDAQ.
Before the deduction of the net income, the Non-GAAP net income of the company is $19.84 million with EPS of $0.51 which is $10 million less than Q3 12. Overall, the company posted a 29% YoY increase.
Share price takes a beating
Investors are really a cautious bit since the market was not so optimistic for Sohu.com after it had announced its Q3 results. The price fell down from $81.42 to $68.11 on Monday, October 28. But now is the time to invest in this stock as it could spiral upwards anytime.
