sohu today announced as of March 31, 2014 unaudited financial report in the first quarter of 2014. Data show that total revenue for the quarter revenue of $365 million, compared with the same period in 2013 increased by 19%, compared with the previous quarter fell by 5%; For sohu company gaap net loss of $79 million in the United States, compared to the same post. This is mainly due to higher travel costs.
? Brand advertising revenues of $111 million, compared with the same period in 2013 increased by 38%, compared with the previous quarter fell by 10%.
? Sogou revenue was $70 million, compared with the same period in 2013 increased by 78%, with the previous quarter.
? Online gaming revenue was $163 million, down 2% compared with the same period in 2013, down 5% compared with the previous quarter.
sohu CEO Charles zhang results data and mobile business bureau, online video and other hunting cloud network and other media interview, the following points for abstract:
loss reasons for
on the surface and considering the reasons in the first quarter, brand advertising and the sogou business achieved greater increases in income, but the game business slightly decline in the overall flat, and in technology research and development and marketing of larger put into effect the overall profits (changyou itself is listed first quarterly loss in five years, amount to us $19.5 million).
zhang summed up losses of the three major reasons: one is the video business still do not make money, costs relatively large bandwidth and content; 2 it is to swim in the promotion strategy, the marketing cost is higher; 3 it is mobile products such as news client monetization degree is still small, still in the stage of rob users.
travel costs? Changyou results revealed that in the first quarter of operating costs $171.5 million, rose 31%, up 273% from a year earlier. Product development costs $69.6 million, in the first quarter rose 61%, year-on-year growth of 246%, mainly due to the growth of the company salary welfare costs in the first quarter, and the company issued employee incentive plan announced earlier under internal dividend stocks, additional compensation fee). In terms of sales and marketing costs, in the first quarter was $80.5 million, rose 16%, up 520% from a year earlier.
the above mentioned sohu brand advertising in the first quarter rose 38% year-on-year, it includes the portal, online video, focus, and 17173 pieces.
Charles zhang said that in the first quarter, growth in online video, focus of implements and among them, online video rose 78% year-on-year, but he did not disclose the specific revenues.
in addition, sogou sohu as the high quality assets into the orbit of scale profit. Sogou revenue of $70 million in the first quarter, up 78% from a year earlier. Due to the search business into sogou and with tencent mobile search entry recommended products, sogou mobile search traffic increased by 24%. Wireless search revenue to search revenue ratio from 10% to 10% in the last quarter.
mobile products monetization
zhang in an interview with hunting cloud network, according to the current sohu on mobile products still less revenue, is still in a “flow first, for the user” phase.
he said that the current revenue mainly comes from online video, mobile end ratio is relatively low, of course. In addition, in the mobile client portal products such as news, hand sounet has achieved a small amount of income, in form of advertising.
for the next mobile product commercialization, zhang said the company has been working on more appropriate forms of advertising, such as precision advertising, is currently in development.
about the part of the show be banned
since yesterday “the big bang theory” and “good” and so on a number of TV drama from the shelves, involving video sites including sohu video, youku, tencent video and so on.
zhang confirmed about this, say is offline for policy reasons. “But I believe that this play offline is a
more independent events, also do not represent the whole TV drama in China’s overall policy tightening completely, or change. So for the fate of the TV drama in China I was very confident.”
about ali in youku
in zhang during the interview, youku tudou announce accept alibaba group and yunfeng $1.22 billion capital injection, accounting for a total of 18.5%. This is the love in the merger after PPS, suning acquisition PPTV, video industry is a big deal.
Charles zhang said, “we don’t believe that this strategy is combined to make it work, we still have confidence, welcome all kinds of competition, various joined the camp of what, we still play routinely determined, shall not be affected. We have the confidence to sohu video to maintain the first three, and beyond.”
sohu video playing regularly? Charles zhang said, “through the refinement operation and the power of the sohu media platform, the user scale of sohu group as a whole, leading to sohu video access to high speed growth.”
at the same time, he also revealed a key information. “Current status is our two other competitors by a major purchase, but we have no through acquisitions will continue to maintain high-speed growth, this is our creed.”
this means that the sohu video next still would not consider investment in mergers and acquisitions. So, tencent video thoroughly “alone” (marriage and youku has failed).