Mixed feelings, this is Sohu second quarter results of the most true portrayal

Sohu's second-quarter earnings released yesterday showed that the total revenue was 256 million U.S. dollars, an increase of 29% per cent year-on-year, up 13% from the previous quarter. Net profit was $11 million, down 74.2% from a year earlier of 42.7 million.

Sohu is pleased that the advertising business continues to grow, especially based on Sogou search and other business income of 29 million U.S. dollars, compared with the same period 2011 growth of 111%, compared to the previous quarter growth of 33%. The game business also maintained a higher than average market speed growth. In the second quarter of 2012, China's online gaming enterprise revenue market reached 14 billion yuan, an increase of 21.4% per cent year-on-year, according to the data from Eric. Sohu's second-quarter online gaming revenue was 137 million U.S. dollars, a 35% increase from the same period in 2011, the top four.

The original advantage of the business portal business is due to the micro-blog and video strategy of the unknown encountered setbacks.

In the second half of 2010, Zhang said, "Sohu will elevate the status of Weibo to the highest level, I personally come to grasp, the development of micro-Bo will not cap the investment." He once said that Sohu Weibo will catch up with Sina Weibo within a year. But the high pressure of Sina Weibo and Tencent Weibo has forced him to admit: "We have done our best in the past two years, but we have lost in the fierce micro-broad war." "In revenue, Sohu's brand advertising revenue for the second quarter of 2012 was $69 million trillion, up just 2% from the same period in 2011," the report said.

And the video of the single set of procurement costs has been restored to the level of 2011 years ago, from last year's 1 million yuan/set down to 500,000 yuan/set. But for Sohu is clearly still a burden, coupled with high bandwidth costs. The huge investment in video eventually led to Sohu's net profit fell 74.2% year-on-year.

Flowers do not open heart, inadvertently inserted Willow shady.

Zhang and Sohu in the past two years the most strength of the new project Weibo and video have encountered extremely fierce market competition, in order to grab a place to invest heavily. But one has officially admitted defeat, and the other is not afraid to say the future is magnanimous.

The existing Sogou and swim more worry, have achieved more than expected growth. Sogou's income base is still not high, accounting for only one-tenth of the group's revenue. Over the past two years by eating Google out of the Chinese market after the share has been saturated, the future to be from the leader of Baidu Bowl to share a cup of soup, continue to maintain more than 100% of the year-on-year growth rate is too difficult.

The swim is Sohu Group's revenue profit main force, only is in the net swims the market nearly two years to have said good-bye to the explosive type high growth, in "Tianlong eight" after has not had the new main product to connect the stick. However, the capital has a good news, its page tour department Seventh Avenue is preparing for the IPO, which also boosted the swim and Sohu share prices rose in Monday.