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Baidu marks slowing profit growth

Chinese internet-search company Baidu (BIDU.NASDAQ) said earnings increased 8.5% to US$328.9 million in the first quarter, down from double-digit growth the previous year as its expenses grew, The Wall Street Journal reported. Total revenue rose 40% to US$967 million. The company’s sales, general and administrative costs rose 77% and research and development costs rose 83%, sparking concerns about whether Baidu can make money off of increasingly popular mobile devices. Baidu has benefited since Google (GOOG.NASDAQ) moved its business out of the mainland in 2010 after a censorship row with Chinese officials. However, the company faces competition from Qihoo Technology (QIHU.NASDAQ), which launched a search engine in August. 

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