Online Video Business
Alicia Yap – Barclays Capital: My question is related to your online video business. So, can management share with us the overall demand for the online videos and also the outlook for the rest of this year? And are we continuing to see the budgets shifting from offline to online? And also, can you provide us the update on the latest competitive landscape and how are we performing relative to the peers? Thanks.
Carol Yu – Co-President and CFO: Hi Alicia, this is Carol. Let me take your question one by one. Our video business is doing very well. We feel that while some of our competitors have not announced their earnings, the video sales have been outperforming our peers, at least that’s what we believe. And the competitor’s landscape remains very, very competitive. But our premier content like what Charles has said in terms of Voice of China, American drama series as well as our Japanese animation series are all very sticky and have been attracting users to our platform.
Alicia Yap – Barclays Capital: Then can you just roughly on the outlook – the overall outlook for the rest of this year, the growth rate?
Carol Yu – Co-President and CFO: We saw a growth of – north of 70% for Q1 and we expect that to at least continue for the rest of the year.
Dick Wei – JPMorgan: Just want to – wonder if you could mention and give some guidance or shed some light in terms of the margins for the Company on both, on the Sogou side and then for the rest of the year, that will be great.
Carol Yu – Co-President and CFO: We expect the margin will remain stabilized at the Q2 level for the entire Group for the rest of the year.
Dick Wei – JPMorgan: Just wanted to make sure, is some of the investment on the Sohu side, is that mainly related to the video related investment?
Carol Yu – Co-President and CFO: Sorry, say that again.
Dick Wei – JPMorgan: Most of major investment for Sohu side, is that mainly from the video investment, any other new areas of investment?
Carol Yu – Co-President and CFO: On two of our very important strategies, video being one of them and the other is the overall mobile strategy. As you probably know that the mobile right now, we haven’t been massively monetizing it, and neither do our competitors. But we have been investing heavily on the mobile side.
Dick Wei – JPMorgan: Just wondering if you can share how much revenue is from video last quarter.
Carol Yu – Co-President and CFO: From video?
Dick Wei – JPMorgan: Right.
Carol Yu – Co-President and CFO: We are not disclosing that.
A Closer Look: Sohu.com Earnings Cheat Sheet>>