- IQiyi’s revenue cost in the third quarter was approximately $937.2 million, compared with the same period in 2019.
- Baidu achieved revenue of $4.3 billion, and the net profit attributable to Baidu reached $2 billion.
- Shell’s performance in the third quarter grew strongly.
IQiyi released its 2020 third quarter performance report on Monday. The financial report shows that in the third quarter of 2020, iQiyi’s revenue reached approximately $1.1 billion. Regarding the financial health that the market has been paying attention to, IQiyi performed well in cost control this quarter.
IQiyi’s revenue cost in the third quarter was approximately $937.2 million, compared with the same period in 2019, a decline of 22%. Affected by this, iQiyi’s operating loss in the third quarter was $178.2 million, which was significantly narrower than the $227 million operating loss in the same period in 2019.
At present, iQiyi has significantly narrowed its net loss rate year-on-year for two consecutive quarters.
Baidu Releases Q3 Financial Report
On Tuesday, Baidu released its unaudited third-quarter financial report, as of September 30. The financial report shows that in the third quarter of 2020, Baidu achieved revenue of $4.3 billion, and the net profit attributable to Baidu reached $2 billion. Both revenue and profit exceeded Wall Street expectations.
From the perspective of specific business segments, Baidu’s core rebounded significantly, achieving revenue of $3 billion, which is the main force driving Baidu’s revenue growth. Among them, Baidu’s core online advertising revenue was $2.8 billion.
Thanks to the increase in revenue from smart cloud services, Baidu’s core non-online advertising revenue was $440 million, a year-on-year increase of 14%. Robin Li, Co-founder and CEO of Baidu said:
“Our revenue growth turned positive in the third quarter with many advertising verticals turning around, putting Baidu in a good position to further benefit from a recovery in the Chinese economy. The vibrant mobile ecosystem that Baidu has built in the last few years sets a strong foundation for us to grow our non-advertising business.”
He added, “our new AI businesses saw healthy growth in the third quarter, particularly from cloud, where we are differentiating with AI solutions.”
Herman Yu, CFO of Baidu stated:
“Our team executed in the third quarter with top line growth, resilient profitability and strong cash flow, a testament to the durability of Baidu’s business, despite China experiencing a second wave of COVID-19 in July. Our focus on differentiating Baidu with open-platform, in-app search and new AI businesses has enabled Baidu Core’s adjusted EBITDA margin to reach 46% in the third quarter.”
Yu added, “we also executed on our capital allocation strategy by selling down equity investments and continuing to execute on our share repurchase plan.”
Shell’s First Financial Report
Shell released its unaudited third-quarter financial report. The financial report shows that Shell’s performance in the third quarter grew strongly, with total platform transaction volume (GTV) reaching $152 billion, a year-on-year increase of 87.2%.
Shell’s report shows strong growth and promotes digitalization of residential services to improve efficiency
Operating income in the third quarter reached RMB 20.5 billion (approximately US$3 billion), an increase of 70.9% year-on-year. The adjusted net profit in the third quarter was $283 million, a year-on-year increase of 210.6%. Revenue and profit were higher than previous market expectations.
Shell’s cumulative GTV, revenue and adjusted net profit for the first three quarters of 2020 have fully exceeded the full year of 2019.