Baidu reported its first loss. The report shows that the three sectors of advertising revenue, medical health, online games and financial technology, have declined, which has dragged down revenue.
The decline of online game sector is consistent with the industry trend of stagnant growth of game revenue in Tencent’s earnings report. Last year, overseas market research institutes predicted that the global game industry would decline for the first time in 25 years.
The decline of financial technology in Baidu’s advertising revenue is not inconsistent with the 44% increase of financial technology in Tencent’s financial report. Tencent has split the financial technology sector separately this year. However, although the data have increased greatly, the growth rate of Baidu’s advertising revenue is in decline, but also lower than the market expectations, reflecting the rising concentration of the industry; the financial technology that buys advertising space in Baidu is mainly small and medium-sized enterprises. According to FT data, the domestic financial technology sector in the first quarter of the venture capital investment than in the last quarter reduced by half, coupled with the P2P thunderstorm has not stopped, the severity of Baidu’s business can be imagined.
The only incomprehensible thing is the decline of Baidu’s advertising revenue in the medical health sector. According to Ali’s financial report, GMV in Ali’s health sector grew by more than 140% year-on-year over the past year. "It has become another powerful engine for the next revenue and profit growth of the group." Tencent’s investment in the medical health sector is also very hot this year. Why Baidu’s traditional dominant business? Are there any downturns?
If the health sector itself does not shrink, where is the advertising cake going? WeChat? Micro-blog?
Baidu s first financial loss, the report shows advertising revenue in the ___________.
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