2017.02.2400:42:00UTC+00Baidu’s Sales Gets Boost from Business Push

Baidu Inc.'s quarterly results beat projections, lifted by its push into new businesses including news aggregation as it looks to conquer government limitations on online advertising.

Fourth quarter revenue clocked in at 18.21 billion yuan or $2.62 billion, above the estimates for 18.17 billion yuan, according to the internet giant. Net income for the period was 4.61 billion yuan, almost double of the 2.52 billion yuan average projections. Shares of the company increased by more than 1% in extended trading.

Baidu's new president, Qi Lu is setting the groundwork to restructure the company and make a push into new products utilizing AI as Beijing tightens its control over advertising, particularly from the medical industry. While the firm continues to be the undisputed search engine of the country, rivals are beginning to gain footing in the market.

Aside from rising competition, the company also has to devise a strategy to speed up annual revenue growth, which has decelerated to its slowest pace. Revenue is seen to be at 16.48 billion yuan to 17.03 billion yuan during the first quarter of the current year, down 10% from the year-prior period.