Sohu.com has reported total revenues of $129.5m for the first quarter of 2010, up 12% compared to the same period last year. Revenues decreased 5% sequentially.
The company posted a gross margin of 75% in the first quarter of 2010, compared to 75% in the fourth quarter of 2009 and 76% in the first quarter of 2009.
For the quarter ended March 31, 2010, the company posted a net income of $41.3m, before deducting the share of net income pertaining to the non-controlling interest in Changyou, down 3% quarter-over-quarter and 7% year-over-year. After deducting the share of net income pertaining to the non-controlling interest in Changyou, net income attributable to Sohu was $27.9m, or $0.73 per share.
Brand advertising revenues were up by 1% to $39.5m, while online game revenues reached $72.1m, an increase of 17% year-over-year and 2% quarter-over-quarter. Wireless revenues for the first quarter of 2010 were $13.3m, representing a decrease of 15% sequentially and 1% year-over-year.
Charles Zhang, chairman and CEO of Sohu, said: “We are pleased to report another quarter of solid financial results built on the accomplishments of an exceptional year which saw us deliver record results along with an enormously successful listing of our MMORPG subsidiary Changyou. Effective business strategies and high-quality products have allowed Sohu to overcome the sluggish economy of 2009 and gain market share in many of our key business segments.”
Sohu anticipates total revenues to be in the range of $139m and $144m for the second quarter of 2010, with advertising revenues of $54m to $56m. Brand advertising revenues are expected to be between $51m and $53m and online game revenues are expected to be between $74m and $77m.
