China's Baidu.com, Inc. (ADR)(NASDAQ:BIDU) plans to fast forward its growth through acquisitions, its boss Robin Li said on Wednesday at an analyst's call after the search engine reported quarterly earnings.
He said that he preferred inorganic growth to building up the company, as a faster way to offer a wide range of services to users.
Acquisitions would give it ready-made products saving it time and giving it a competitive advantage, he said.
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Baidu's second-quarter net income rose to 2.77 billion Yuan ($434 million), or 7.86 Yuan per American Depositary Receipt, compared with 1.63 billion Yuan, or 4.67 Yuan, a year earlier. That beat the 2.5 billion-Yuan that analysts had estimated. Revenue rose 60 percent to 5.46 billion yuan.
Its ADRs rose 9.5 percent in extended trading, the stock having earlier fallen 3 percent on the Nasdaq.
Baidu is targeting mobile users and is looking to get in more revenues from display advertisements.
Baidu had more than 350,000 customers for its online advertising services at the end of the second quarter, 9.7 percent more than three months earlier, Chief Financial Officer Jennifer Li said on the analyst call.