Online games increase Sohu’s 2Q net income by ten percent- A marvelous choice indeed

Sohu.com Inc, a Chinese Web Portal announced on Monday that its second quarter net profit increased by ten percent with the increase in online games and advertising revenue. CEO Charles Zhang pointed out in a statement that the company was focusing to implement advertising in online video andprograms which play the content on devices like Apple Inc.’s iPad. Chief Operating Officer Belinda Wang reported that the World Expo as well as the World Cup helped increase online advertising in the quarter. For the April-June period, Sohu mentioned its net income rose to $33.5 million, or 82 cents per share, from $30.2 million, or 73 cents per share, in the same three months previous year. Revenue rose thirteen percent to $146.1 million from $129.5 million in the last year quarter. The online advertising of Sohu as well as Changyou online games groups saw an increase in the revenue in the quarter, thereby helping offset a decline in its much smaller wireless business. Similarly Shares of Sohu increased by $1.25, or 2.8 percent, to $46.29 in afternoon trading. The maximum number of internet users is in China with 420 million people online as of 30^th June, as per the government-sanctioned China Internet Network Information Center.

We expect overall earnings of 93 cents per share on revenue of $154.9 million, on an average.