Despite revenue gains Baidu's Q3 profit falls 27% due to heavy spending

Mainland Internet search giant Baidu saw profit fall 27% in the third quarter to RMB2.84 billion (US$447.3 million) despite revenue having jumped 36% to RMB18.38 billion, The Wall Street Journal reported. Total operating costs at Baidu surged 65% to RMB15.78 billion for the period, as the company has been spending heavily to win market share in the online-to-offline market in which online customers are linked with services like group buying or food delivery. Many of the players in said sector are backed by venture capital or by Baidu’s chief rivals, Tencent Holdings and Alibaba Group Holding. Despite the fall in profit, Baidu’s American depositary shares rose 6.5% to US$180 in recent after-hours trading.