Despite being eclipsed by much younger peers in recent years, Sohu.com, one of China’s oldest internet companies, is showing that it is still very much alive and kicking.
In the final quarter of last year, Beijing-based Sohu racked up $253 million in revenues, up 34% year-on-year, about 77% of which came from its online games business that generated revenue of $196 million, representing a year-on-year increase of 49%, according to its latest earnings report released on Thursday. Its brand advertising revenue remained flat from the same period of 2019 at $42 million.
While logging robust top-line growth, Sohu returned to profitability during the fourth quarter, when its net income reached $47 million, compared with a net loss of $29 million in the same period of 2019, according to the financial report.
CEO Charles Zhang attributed the U-turn to Sohu’s persistent efforts to “innovate products and technology, improve monetization efficiency and strictly control our budgets.”
For the first quarter of 2021, Sohu said it expects its online games revenue to reach between $137 million and $147 million, representing a quarter-on-quarter decrease of 25% to 30%.
Contact reporter Ding Yi (email@example.com)