Sohu says Q4 profit falls 32% on higher costs
CHINESE Web portal Sohu.com Inc said today its fourth-quarter earnings fell 32 percent to US$6.1 million, weighed down by higher costs.
Revenue rose 16 percent to US$34.4 million, but missed Wall Street’s expectation for US$35.5 million, The Associated Press reported.
The company said the bulk of its sales came from online advertising. Ad revenue grew 23 percent year-over-year.
But results were hurt in part by a sharp rise in advertising costs. Brand advertising costs rose 66 percent to US$7.1 million, while search-ad costs increased by 56 percent to US$1.7 million over the previous year.
For the full fiscal year, Sohu.com said profit fell 13 percent to US$25.9 million. Revenue rose 28 percent to US$134.2 million.
Advertising revenue rose 35 percent year-over-year to US$91.8 million, helped by heightened activity related to the World Cup over the summer, Sohu.com said.