Chinese search engine Baidu announces 60% rise in income

China's biggest search engine has reported a 60 per cent rise in quarterly net income compared to the same time last year. Baidu announced a quarterly net income of 3.01 billion yuan (£229 million) due to a 50 per cent surge in online advertising.

Baidu currently has nearly 80 per cent of the Chinese search market, after Google exited China in the wake of a censorship row in 2012.

The firm said it would now focus on making money from its mobile strategy as more users are shifting from personal computers to mobile devices such as smartphones and tablets.

Chief executive Robin Li said the firm's mobile search traffic was growing at triple digit rates.

"We are working hard to improve the monetisation system for mobile and to educate our customers to take full advantage of mobile," Li told analysts on a conference call after the earnings announcement.

"But we expect it would take some time to close the gap," he added.

Baidu also faces increased competition from firms like Qihoo 360 Technology, a security company, which launched a competing search engine in August this year.

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