The Chinese internet giant Baidu is clearly suffering from the corona crisis. The group’s advertising revenue is under pressure because large companies in sectors such as tourism and financial services are reducing their expenditure in this area because of economic uncertainty.
Baidu saw sales decline in the last second quarter to just over 26 billion yuan, more than 3.2 billion euros. Baidu’s online advertising branch put an 8% drop in revenues on the books. IQIYI, a streaming service similar to Netflix, did have a strong growth, which still compensated somewhat against the advertising crimp.
For the current third quarter, Baidu has been cautiously voted. The company warned that it has little visibility of advertising developments due to the corona uncertainty. Baidu foresees a turnover of yuan 226.3 billion to yuan 28.7 billion for the reporting period.