Sohu.com , the Chinese Internet portal operator, reported its third-quarter net profit increased a whopping 47% in the last year. The elevation was attributed to 2008 Beijing Olympics-related advertising, as well as an increase in online gaming.
Third-quarter net profit rose to $9.69 million, or 25 cents a share, from $6.6 million, or 17 cents a share, a year ago. Net profit excluding share-based compensation came in at $11.7 million, or 30 cents a share, beating the company's original forecast of 25 cents to 27 cents a share. Revenue for the period ended September 30 grew 46% to $51.5 million, from $35.4 million in the year-ago period.
The rocketing of revenue comes mainly from the company's exclusive rights to post advertisements with the official logo of the 2008 Beijing Olympic Games. Olympic-fueled advertising revenue rose 32% to $31.5 million from $23.9 million a year earlier.
Adding fuel to the Sohu.com fire, online gaming revenue rose more than 500% in the third quarter, coming in at $12.7 million from $2.2 million a year ago. The profit - which makes up approximately 20% of the company's total 3Q revenue - stems from Tian Long Ba Bu, Sohu.com's new role-playing game.
Things can only look up for SOHU, as the company has predicted total revenue for the fourth quarter to come in between $53.5 million and $55.5 million. To top it off, Sohu.com's CEO predicts an extended continuum of cash, stating that Olympics revenue should increase even further after the torch relay in March.
From late-June to mid-September, the Internet operator met support at the 30 level and resistance at 36. Since breaking through that barrier on September 12, SOHU has muscled nearly 63% higher. After the better-than-expected earnings news, the stock has gained more than 9% to hit a new all-time high of $58.86 during intraday trading.