Baidu beats estimates

Baidu (9888) saw its interim net profit drop slightly by 2.4 percent year-on-year to 9.42 billion yuan (HK$10.72 billion) for the first half of 2022, but the second quarter profit beat expectations.

It was helped by the search leader's efforts to expand into new businesses and shield itself from an economic downturn.

Sales rose 4.3 percent to 29.6 billion yuan in the April-June period, just above the average analysts' forecast. But net income came to 3.6 billion yuan, surpassing the 2.2 billion yuan expected.

Baidu's Netflix-like video service iQiyi reported revenue a shade weaker than estimates. But it also unveiled improving margins and a deal to place US$500 million (HK$3.9 billion) of convertible notes with Hong Kong private equity firm PAG.

Baidu's shares climbed about 2.5 percent in pre-market trading in New York.