Baidu Inc. suffered a loss in the first quarter as losses in the fair value of investments offset an increase in revenue.
The Chinese search engine giant posted a net loss of 885 million yuan ($ 132.2 million) on Thursday, compared to a net profit of CNY 25.65 billion a year earlier. It recorded a fair value loss of CNY 3 billion for long-term investments, below a fair value gain of CNY 23.6 billion for long-term investments a year earlier, mainly including an investment gain in Kuaishou Technology.
Operating profit for the first three months amounted to CNY 2.6 billion, 7% less than the previous year.
Revenue for the period increased 1% to CNY 28.4 billion, although the online marketing revenue of its core businesses fell 4%. Meanwhile, offline marketing revenue rose 35 percent, driven by the cloud and other artificial intelligence-driven companies, he said.
Baidu CEO Robin Li said the company’s business has been affected by the resurgence of Covid-19 in China since mid-March. “While the virus-related challenges continue to put pressure on our short-term business operations, we are confident that our new AI companies will drive Baidu’s long-term growth,” he added.
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