Sohu.com Inc. (NASDAQ:SOHU) reported net income above Wall Street’s expectations for the third quarter. Net income for the internet information provider rose to $46.8 million ($1.17 per share) vs. $41 million ($1.01 per share) in the same quarter a year earlier. This marks a rise of 14.2% from the year earlier quarter. Revenue rose 41.9% to $232.9 million from the year earlier quarter. SOHU reported adjusted net income of $1.26 per share. By that measure, the company beat the mean estimate of $1.18 per share. It beat the average revenue estimate of $228.1 million.
Dr. Charles Zhang, chairman and chief executive officer of Sohu.com commented, “I am pleased to report strong third quarter results with year-over-year revenue growth of 42%, driven by solid performance of our online advertising and online gaming businesses. For online advertising, two of the fastest growing areas, Sogou and Sohu video continued to deliver exciting news. Sogou’s quarterly revenue grew 244% year-over-year, comfortably exceeding our prior guidance. Sohu video, for the first time, in September, both the number of visitors and total number of video viewed rose to the second place in China, according to Comscore.” Dr. Zhang added, “For online game, our online gaming subsidiary Changyou once again exceeded its top-line and bottom-line financial goals, while making planned investments in marketing and promotion of Duke of Mount Deer. Our flagship game Tian Long Ba Bu, or TLBB, continued to expand player numbers with the release of new expansion pack. Duke of Mount Deer, or DMD, appeals to hard-core game players with its new technologies and advanced cross-server game play.”
Competitors to Watch: Baidu.com, Inc. (NASDAQ:BIDU), SINA Corporation (NASDAQ:SINA), Google Inc. (NASDAQ:GOOG), NetEase.com, Inc. (NASDAQ:NTES), Yahoo! Inc. (NASDAQ:YHOO), Ku6 Media Co., Ltd. (NASDAQ:KUTV), Shanda Interactive Entertainment Ltd ADR (NASDAQ:SNDA), Youku.com Inc (NYSE:YOKU), and Rediff.com India Ltd. (NASDAQ:REDF).
Changyou.com Limited (NASDAQ:CYOU) reported higher profit for the third quarter as revenue showed growth. Net income for the multimedia and graphics software company rose to $52.8 million (99 cents per share) vs. $45.3 million (85 cents per share) in the same quarter a year earlier. This marks a rise of 16.6% from the year earlier quarter. Revenue rose 39% to $119 million from the year earlier quarter. CYOU reported adjusted net income of $1.01 per share. By that measure, the company beat the mean estimate of 98 cents per share. Analysts were expecting revenue of $117.5 million.
Mr. Tao Wang, Changyou’s Chief Executive Officer, commented, “Our blockbuster Tian Long Ba Bu, or TLBB, continues to expand player numbers with the release of each new expansion pack that adds sought-after new game play that is requested by our players. After the release of the major expansion pack TLBB3 on October 20th, the number of users and the number of active paying accounts increased. Meanwhile, our new self-developed 3D MMO game, Duke of Mount Deer, or DMD, which launched on July 22nd, appeals to hard-core game players with its new technologies and advanced cross-server game play. We believe these results once again demonstrate our ability to understand and fulfill gamers’ needs and showcase our content development and game operation strengths. We anticipate bringing a greater variety of games to market in the following quarter and next year to further advance our leading position in the online game industry.”
Competitors to Watch: The9 Limited (NASDAQ:NCTY), Shanda Games Limited (NASDAQ:GAME), Giant Interactive Group Inc (NYSE:GA), Perfect World Co., Ltd. (NASDAQ:PWRD), Shanda Interactive Entertainment Ltd ADR (NASDAQ:SNDA), NetEase.com, Inc. (NASDAQ:NTES), Webzen Inc. (WZENY), Gravity Co., LTD. (NASDAQ:GRVY), and Sohu.com Inc. (NASDAQ:SOHU).