China’s Baidu revenue falls for fifth straight quarter in Q2
New Delhi, Aug 20 (IANS) Chinese technology company Baidu reported a fifth consecutive quarterly decline in revenue as weakness in its online marketing business continued to weigh on performance despite strong growth in artificial intelligence-related operations, according to a report.
According to an analysis of Japan Today, the search engine company posted second-quarter revenue of 31.3 billion yuan ($4.6 billion), down 4 per cent from a year earlier, according to its unaudited financial results.
Meanwhile, operating income fell to 3 billion yuan in the three months ended June 30 from 3.3 billion yuan a year earlier, it said.
Baidu has invested heavily in artificial intelligence in recent years, recruiting leading researchers and launching its Ernie chatbot, one of the country’s earliest generative AI products.
Revenue from Baidu’s AI business — which includes AI applications and infrastructure services — rose 25 per cent year-on-year to 12.5 billion yuan during the quarter.
By contrast, revenue from online marketing services, historically the company’s main source of cash flow, declined 19% from a year earlier to 13.1 billion yuan.
“While our online marketing business remains under pressure, the growing momentum in our core AI-powered Business reaffirms Baidu’s transition from an internet-centric company to an AI-first company,” Chief Executive Robin Li said in a statement.
“That AI momentum strengthens our confidence in our long-term growth potential,” Li added.
Baidu’s advertising business has come under pressure amid sluggish consumer spending in China, as companies cut marketing budgets in response to a slowing economy.
Signs of weak consumption persisted in recent economic data. China’s retail sales growth slowed in July, according to official figures released this week.
Additionally, data from the National Bureau of Statistics showed retail sales up 0.6 per cent in July from a year earlier, below the 1.5 per cent growth forecast and slower than the 1 per cent increase recorded in June, according to the report.
–IANS
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