Sohu beats Q3 profit expectations on search ad sales

Web portal Sohu’s (SOHU.NASDAQ) third-quarter results beat analyst expectations, as did results from its online games subsidiary Changyou (CYOU.NASDAQ), the Wall Street Journal reported. Sohu’s third-quarter net profit rose 9.6% to US$41 million, up from US$37.4 million a year earlier and above analysts’ consensus estimate of US$34.8 million. Changyou said third-quarter income rose 20% to US$45.3 million, up from US$37.8 million a year earlier, also beating estimates but by a smaller margin. Changyou revenues increased 25%. Sohu also raised fourth-quarter revenue forecasts to between US$163 million and US$168 million, also ahead of analyst predictions. It attributed its strong performance in part to a 22% increase in brand advertising revenue. Sohu also closed a deal to sell preferred shares in its online search unit, Sogou, to a group of investors including the Alibaba Group, which also owns e-commerce site Taobao and listed unit Alibaba.com (1688.HK).