NEW YORK, NY -- (Marketwire) -- 03/07/11 -- According to the China Internet Network Information Center, China has the world's biggest population of internet users with more than 500 million. Based on the rise of the nation's middle class, analysts believe that China's internet market still has room to grow. In fact a recent study from the consultancy, McKinsey&Co estimated that 6 million people go online for the first time in the country every month, and predicted the Chinese internet population will grow to 750 million in 2015. The Bedford Report examines the outlook for companies in China's Internet Sector and provides research reports on Sina Corporation (NASDAQ: SINA) and Sohu.com, Inc. (NASDAQ: SOHU). Access to the full company reports can be found at:
For the most part, the boom in internet users, has led to a surge in profits for several marquee Chinese websites.
Sohu.com's fourth-quarter earnings of $1.07 a share, topping the consensus estimate of 99 cents a share. Revenue soared more than 25 percent to $173.2 million. The company said it expects to earn $1.03-$1.08 a share in the first quarter on sale of $164.5-$169.5 million. The company attributed online gaming and brand advertising for the revenue growth.
Overall, the online gaming industry in China has expanding at a compound annual rate of 50 percent to approximately $5 billion in 2010, according to third-party researcher iResearch.
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Last week, China's largest internet portal, Sina, posted a fourth-quarter net loss of $100 million, or $1.51 a share. Mobile-related revenue dropped 26 percent to about $21 million. Online advertising revenue soared 30 percent to $82.5 million in the quarter as user traffic increased on interest in Sina's Weibo -- a product similar to Twitter.
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