Biz / Tech

Pandemic in the background of JOYY, Baidu Q2 earnings

Ding Yining
Livestreaming group JOYY beat revenue expectations thanks to overseas growth, while Baidu's results turned toward recovery.
Ding Yining
Pandemic in the background of JOYY, Baidu Q2 earnings

The COVID-19 pandemic is having different impacts on the second-quarter financial results of top Chinese digital businesses.

Livestreaming group JOYY posted higher-than-expected revenue after its overseas platform reported strong usage.

Profit surged 38.3 percent to 493 million yuan (US$70.4 million) and revenue increased 36.3 percent to 5.84 billion yuan. 

Over 90 percent of its 457 million mobile users come from overseas markets.

Livestreaming revenues from its overseas subsidiary Bigo contributed more than half of total livestreaming revenue for the first time, soaring nearly 150 percent from the prior year to 3.06 billion yuan.

"Despite the outbreak of COVID-19 and resulting macroeconomic and geopolitical uncertainty, we believe that the global landscape for livestreaming and short-form videos remains promising," Chairman and Chief Executive Officer of JOYY Li Xueling said in a statement. 

It expects third-quarter revenue to see annual gains between 26.7 percent and 29.9 percent, to a range between 5.85 billion yuan and 6 billion yuan. 

The group intends to continue cultivating its global livestreaming and short-form video ecosystem. 

Search giant Baidu, meanwhile, posted a smaller-than-forecast drop in revenue after its online advertising business bounced back from the pandemic. Revenue declined just 1 percent to 26.03 billion yuan in the quarter through June, while profit rose 48 percent to 3.6 billion yuan. 

Advertising sales showed quarterly improvement but were still down 8 percent year on year to 17.7 billion yuan, improving from the 19 percent decline in the first quarter. 

"Baidu’s business is steadily rebounding with COVID-19 becoming more manageable in China, and we plan to continue heavy investments in technology to maximize Baidu’s future growth potential," Chief Executive Robin Li said in a statement.  

Citing uncertainty about the pandemic's impact, Baidu expects revenue change in the third quarter to range from a 3 percent gain to a 7 percent decline. 

Revenue from its online video affiliate iQiyi edged up 4 percent to 7.4 billion yuan, and membership revenue advanced 19 percent. Online advertising revenue fell 28 percent.

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