Last year revenue growth 20% portal game dual engine support performance

This reporter Liu Qingxhen Sohu recently released the 2009 annual financial report, the total income of 515.2 million U.S. dollars, annual growth rate of 20%, of which the operation of a subsidiary of the game business income of 267.6 million U.S. dollars, more than the parent company Sohu operating brand advertising and wireless business revenue combined.　　Sohu is looking for ways to increase online advertising revenue in order to create a trend to keep pace with income. Last year's income growth 20% benefited from the game business 93% gross profit margin, Sohu 2009 overall gross margin reached 76%, in this index Sohu ahead of the old rival Sina.　　The net profit of Sohu 2009 is 139.3 million U.S. dollars, excluding the uncontrolled interest arising from the company's excursion and dismantling. The strong performance of the game has contributed to Sohu's earnings, but has also become an object of concern for analysts, fearing that relying too much on the gaming business will lead Sohu to become an entertainment company with a personal pay business. As compared to the game business income of 33% annual growth rate, Sohu 2009 in the brand advertising performance in general, the annual growth rate of only 5%.　　At the same time, the company operates the game "Tianlong Eight" has been approaching the maturity stage, after the game into the aging period after Sohu, if it has not been able to find alternatives, the growth potential of the swim is not clear. However, Sohu said this was because of the 2008 Olympic marketing when the impact of revenue surge. Sohu thinks "the annual growth rate of 5% is already very good".　　According to Sina has released the first three quarterly earnings, its online advertising revenue compared to 2008 decline.　　As for the continued growth of the game business, Sohu said, the current tour from overseas agent income has increased to 7.8 million U.S. dollars, while in the independent research and development of new products, "PO Plan" cooperation and other products to develop a positive trend, so the "growth potential" concerns are not necessary. Most institutions optimistic about Sohu's prospects after the release of Sohu, most of the institutions said optimistic about the investment prospects for Sohu, Credit Suisse analyst Cheung said: "The most important for Sohu is the future release of new games."　　Last year, Sohu's key new game, "The Deer Tripod" was postponed, but Sohu said the game's development is progressing well. CLSA said: "A variety of games have been pushed to postpone the release." We expect the new games to be released as early as the second quarter. Zacks, the investment company, was disappointed with Sohu's first-quarter expectations, delayed by the games and weak advertising spending, which Sohu expects to deduct from the non-US accounting standards for the first quarter of fiscal year 2010, with a net profit of between 31 million and 33 million dollars, based on non-U.S. GAAP.　　Or earnings per share between 78 cents-83 cents, far below the average earnings per share of analysts surveyed by the Zacks poll. Iirgroup, the UK market analysis agency, wrote in Monday that Sohu's fourth-quarter results report showed a robust growth trend as a result of the online gaming sector and maintained the Sohu stock rating in"Buy" level. The agency believes that although Sohu's fourth quarter of last year's brand advertising revenue slightly flat, but the upcoming football World Cup, the Asian Games and Expo will bring new opportunities for Sohu, and its fourth quarter last year revenue also reached the previous target. Iirgroup also believes that, in view of China's network services market competition is more intense, and Sohu has been insisting on increasing spending to apply to marketing and promotional activities, these measures may drag on Sohu's operating performance, while the Sohu online games sector revenue growth rate has declined,　　And in the case of China's economic recovery, Sohu only gave a relatively modest performance expectations, but at this stage, the agency still maintains the "buy" rating of Sohu shares unchanged. Two-pronged promotion of investment value Sohu's board chairman and CEO Charles Zhang said at the press conference: "I am pleased to announce that the fourth quarter of 2009 Sohu Group financial performance is stable, so that the 2009 performance record." During the year, our large multiplayer online role-playing game affiliate, the tour, was successfully launched independently. Effective development strategies and high quality products have helped us to overcome the obstacles of slow economic growth in the 2009 and have earned US market share in many important business areas. "" Through the two major complementary core business Sohu-portal and online gaming business continued investment, we continue to maintain the performance of Sohu long-term sustainable growth. We believe that the continued investment in online video content and technology will bring us a double harvest of revenue growth for 2010 of subscribers and advertisers. Our tireless efforts in combating Internet video piracy have begun to bear fruit. Sohu has therefore become a leading media company in many domestic and foreign partners of the target choice. Our online gaming business is also sustaining strong growth. The ongoing healthy development of the three games has brought a steady stream of revenue, and the upcoming five high expectations new games in 2010 will bring us stronger growth over the next few quarters.　　Our second independent research and development of the game, but also is one of the highest expectations of online games-"Deer Ding kee" is progressing smoothly. Speaking of brand advertising, Sohu's co-president and chief marketing officer, Wang, said: "In the fourth quarter of last year, our brand advertising revenue was relatively stable, rising 2% from a year earlier." We expect 2010, advertisers will increase their marketing activities during the World Cup, Asian Games and Expo. This provides a new opportunity for Sohu's perfect media platform. With the cost advantages relative to other media, with the help of the online advertising industry, Sohu's online media platform will become the new advertising choice for advertisers. ”