SOHU'S Q1 NET PROFIT DOUBLES ON ROBUST ONLINE GAME BUSINESS

Sohu.com, China's leading Internet media company, announced Monday that its net profit surged to US$44.60 million in the first quarter, from US$21.60 million during the same period last year.

The profit hike is largely attributed to Changyou.com Limited, the online games unit of Sohu, whose net profit in the first three months increased 120 per cent year on year to US$33.50 million. It was also 15 per cent up from the fourth quarter 2008 figure.

Zhang Chaoyang, Sohu chief executive, said the online game business was more resilient amid the economic downturn, which helped offset the negative impact the crisis had on portal business.

However, Sohu's net profit was down 21.2 per cent from US$56.6 million in the fourth quarter last year.

Total revenue rose 36 per cent year on year to US$115.7 million. But it slid 5 per cent compared with the fourth quarter last year, dragged down by a 13 per cent month-on-month decline in revenue of online advertising in the first quarter.

Sohu forecasts 121 million to US$125 million in revenue and 31 million to US$33 million in net profit during the second quarter.

Changyou began trading on Nasdaq on April 2, with an initial public offering at US$128 million. Now, Sohu takes a 68.5 per cent stake in the company.

(XIC)

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