Sohu.com Inc. posted a nearly fivefold increase in first-quarter net profit, as advertisers shifted to online outlets and ramped up spending in advance of the 2008 Summer Olympic Games in Beijing (for tickets visit Online Tickets USA).
The Beijing online-media company said first-quarter net rose to $21.6 million from $4.5 million a year earlier. Revenue rose to $84.8 million from $33.1 million, boosted by growth across all categories.
Sohu said it expects stronger results through the remainder of this year, boosted by increase Olympics-related advertising. “Looking ahead at the remainder of 2008, we believe the growth of our brand advertising business will be even stronger,” said Sohu Co-Presidnet Belinda Wang.
The bullish outlook reflects rising Olympic ad spending in the online market, Ms. Wang said. Sohu forecast second-quarter revenue of $93 million to $96 million.
Ad sales, virtually all of which are from brand advertising, are expected to read $40 million to $41 million, and nonadvertising revenue should rise to $53 million to $55 million, Sohu said.
Wall Street Journal; April 2008
