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(Sharecast News) - Baidu reported another drop in its financial performance in the second quarter on Tuesday, as rapid growth in artificial intelligence businesses failed to offset continued weakness across its legacy operations.
Total revenues fell 4% year-on-year to CNY31.33bn, while net income attributable to Baidu dropped 68% to CNY2.3bn, from CNY7.3bn a year earlier.
Revenues were more or less in line with analysts' estimates but the bottom line consensus forecast was closer to CNY2.8bn.
Legacy business revenue slumped 23% to CNY10.4bn, only partly offset by the continued expansion in businesses built around AI.
Revenue from Baidu Core's AI-powered businesses rose 25% to CNY12.5bn and accounted for half of Baidu General Business revenue.
AI Cloud Infrastructure revenue jumped 50% to CNY7.3bn, including a 283% surge in GPU Cloud revenue, while AI Applications revenue edged 3% higher to CNY2.5bn. AI-native marketing services were broadly flat at CNY2.6bn.
Baidu said the growth in GPU Cloud reflected "mounting demand for public cloud-based AI computing".
Baidu shares finished 0.8% higher at HK$101.10 on Tuesday Hong Kong.
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