Baidu's Q4 revenues jump 29%, profit up 1%; plans IPO for iQiyi

Chinese search provider Baidu reported total revenues of CNY 23.6 billion (approximately USD 3.62 billion) for the fourth quarter of 2017, a 29 percent increase year-on-year and just ahead of its guidance. Mobile revenue represented 76 percent of total revenues, compared to 65 percent for the fourth quarter of 2016. Net income amounted to CNY 4.2 billion, representing 1 percent growth year-on-year, and adjusted EBITDA increased 78 percent year-on-year to CNY 6.9 billion. 

Baidu ended December 2017 with cash, cash equivalents and short-term investments of CNY 100.5 billion (USD 15.44 billion). Net operating cash inflow reached CNY 10 billion and capital expenditures were CNY 1.2 billion in Q4. 

For the first quarter of 2018, Baidu expects net revenues of CNY 19.86-20.97 billion (USD 3.22 billion), representing 25-32 percent growth year-on-year. Excluding disposed businesses, such as mobile games and Baidu Deliveries, the guidance represents a 29-36 percent increase year-on-year.

Baidu said it will continue to exit non-core businesses in 2018, in order to increase investment in its mobile and AI platforms. The AI-enabled businesses Apollo for autonomous vehicles and the voice assistant DuerOS are focused on expanding partner and developer programmes.

The company also announced plans to seek a separate stock market listing for its online video subsidiary iQiyi. A draft registration statement already has been filed with the US Securities and Exchange Commission. The proposed number of American depositary shares to be offered in the IPO has not yet been determined. Baidu expects to remain iQiyi's controlling shareholder after the IPO.