Chinese internet portal Sohu.com Inc posted a 37 percent increase in second-quarter net profit, helped by strong performance in its online games and brand advertising units and forecast third-quarter revenue above market estimates.

For the second quarter, Sohu's GAAP net income was $42.7 million, or $1.10 per share, compared with $31.3 million, or 82 cents a share in the year-ago period.

Sohu reported a non-GAAP net income of $47.4 million, or $1.21 per share, compared with $37.5 million, or 96 cents per share a year ago.

Total revenue for the company, which competes with Sina Corp , NetEase.com and Tencent Holdings <0700.HK>, rose 36 percent to $198.7 million.

Analysts, on average, were expecting second quarter earnings of $1.06 a share, excluding items, on revenue of $190.8 million, according to Thomson Reuters I/B/E/S.

Second quarter revenue in our online brand advertising business hit a new high as we saw strong advertising demand from the Internet sector, including e-commerce companies, Belinda Wang, chief operating officer, said in a statement.

Online game revenues for the second quarter were $101.5 million, up 31 percent from the year-ago quarter.

Sohu said it expected third-quarter total revenue to be between $225 million and $230 million, above market estimates of $207.9 million.

(Reporting by Sakthi Prasad in Bangalore; Editing by Will Waterman)