Beijing Olympics adds uncertainty to Baidu's Q3 performance

BEIJING, Jul 25, 2008 (Xinhua via COMTEX) -- BIDU | Quote | Chart | News | PowerRating -- The coming Beijing Olympic Games may add to the uncertainty of Baidu.com's (BIDU.NASDAQ) Q3 performance, but the Games will boost the search engine in the long run, according to Robin Li, CEO and chairman of Baidu.

Baidu's Q2 financial report showed that its Q2 revenue jumped 100 percent to 117 million US dollars, thanks to increase of active online marketing customers, but the company's Q3 guidance just targets a revenue growth rate ranging from 82 percent to 88 percent.

Jennifer Li, CFO of Baidu, said that there might be a decrease in business-related searches during the Beijing Olympics in August, although more users could turn to Baidu for more information about the games.

The search engine expected that some customers might shrink their paid search marketing during the Olympics season. Analysts from RBC Capital Markets estimated that the coming games would influence the expense plans of Baidu's advertisers due to temporary adjustment of business activities in and around Beijing. Citigroup analysts, however, showed a more optimistic view on Baidu, and said that Baidu's revenue guidance could reassure market concern on the Games' impact on Baidu.

Prompted by Baidu's Q2 performance, the company's share price on Thursday climbed 46.38 dollars, or 16.07 percent, to close at 335. 08 dollars.

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