Baidu, the Chinese internet giant, has surpassed the third-quarter revenue estimates, according to the data by LSEG. The revenue for the quarter that ended on September 30 was 34.45 billion yuan ($4.72 billion), slightly ahead of the analysts’ estimate of 34.33 billion yuan.
The company’s advertising business has played a major role in this success, as advertisers are increasing their spending on online services due to the recovery of the Chinese economy. The International Monetary Fund (IMF) has made an upward revision to its earlier forecast of 5% growth to 5.4% growth for China’s economy this year.
This is good news for Baidu, as it is expected to benefit from the increased spending on online advertising. The U.S.-listed shares of Baidu were marginally up in premarket trading, indicating a positive sentiment among investors. ($1 = 7.21 Chinese yuan renminbi)