Sohu brand advertising business growth may slow down

NetEase Technology News July 28, Sohu (Nasdaq: SOHU) today announced the unaudited financial results for the second quarter of 2014 as of June 30, Data show that Sohu sales of 400 million US dollars in the second quarter, up 18%, growth of 10%; net loss attributable to the company was 45 million US dollars, net profit in 2013 was 22 million US dollars, down from the previous year, but the previous quarter The net loss of 79 million US dollars has improved.

After the earnings release, Zhang Zhaoyang, Chairman and CEO of Sohu's Board of Directors, co-president and CFO Yu Chukai, Changyou President Chen Dewen, COO Hong Xiaogun, Sogou CEO Wang Xiaochuan, Sohu's vice president and Sohu video COO Deng Ye held a conference call to interpret the key points and Answer analyst questions.

Bank of America - Merrill Lynch Liang Weiliang: Q3 performance outlook mentioned brand advertising business growth may slow, may I ask what is the specific reason? What impact does the World Cup have on content costs in the second quarter and the third quarter?

Yu Choyuan: The slowdown is due to the fact that we received the second-quarter license of "China Good Voice" in the third quarter of last year, which attracted a lot of advertising funds. This year's growth rate is hard to match (note: this year we did not get any authorization). In terms of video ad revenue, the third quarter's growth rate will be reduced from 85% in the second quarter to 40%.

In the World Cup-related expenses, the second and third quarters of the relatively average, there is no big difference between the two quarters.