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Sina Technology News in Beijing, August 1st morning news, Baidu (Nasdaq:BIDU) today issued the second quarter of fiscal 2018 as of June 30th, unaudited financial report. The report showed that Baidu's total revenue in the second quarter was 26 billion yuan (about $3 billion 930 million), up 32% from a year earlier, and the net profit attributable to Baidu was 6 billion 400 million yuan (about $967 million), up 45% from the same period.
After the announcement, Baidu chairman and CEO Robin Li and CFO Yu Zhengjun attended a teleconference on the financial report, interpreted the main points of the report and answered analysts'questions.
The following is the main content of this conference call Q & a session.
Liang Weiliang (Eddie Leung), an analyst at Merrill Lynch (Eddie Leung): management can give a detailed description of the latest developments in the Baidu news flow, such as the amount of users and commercialization, and what's the difference compared to the competitors. The second question is about the third quarter performance expectations. We notice that the P2P platform has been scandalous recently. Will these social events affect Baidu's third quarter revenue?
Robin Li: as I said about the progress of the news information flow, I have just said that this business has developed very quickly. Both DAU and per user are growing rapidly. The recommendation relevance of news content, or news streaming content, is also improving, and our user experience is now the best. Compared with most other super App, I think we are constantly gaining market share. However, our news stream is designed to enrich people's lives, not just let them pass the time.
So, we want users to know valuable content or information every time they visit Baidu mobile applications, and that's why we think the news flow is part of our core values and an integral part of the search for information flow super App, and we do expect this trend to continue. Go on. We think the Baidu news stream has covered the most audience, with the help of Baidu's good products in the country, and the active users of Baidu's search products for more than 600 million months, we still have a lot of room to grow in the news flow products.
As for the P2P advertising business, we have always been strengthening the control of this business, to P2P advertisers set a high threshold for entry. So far, we haven't seen any significant impact on Baidu's revenue, and we may not feel much impact in the future.
Alicia Yap, an analyst at Citibank: My question is about the environment in which news flows operate and the censorship of advertising content. As you may also see, government departments are tightening up regulation and paying closer attention to the content formats and the content of the built-in advertisements. Will this change in regulatory environment be temporary? Will industry regulation become normal after some time? What is the impact of the government's strengthening of industry regulation on Baidu's products? The second question, this quarter Baidu SG& A (sales costs, comprehensive costs and administrative costs) slightly increased. Is this one of the one-time cost of a business, or is it mainly related to the growth of sales promotion cost?
Robin Li: we always have very high audit standards for the content of news and information flow. We do not want users to see illegal or inappropriate content or information. We just want to enrich people's lives and want users to know valuable information or content. In the past few quarters, we have not seen any negative effects, because we have always adhered to higher standards.
Yu Zhengjun: SG& A grew in the second quarter compared with the same period last year, mainly due to promotional activities and channel costs. (Van Shaw)
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