Sohu Q1 profit nearly quintuples on online game

Sohu.com Inc, China's third-biggest Web portal, posted a better-than-expected increase of 383% in net profit for the first quarter this year, thanks to the Beijing 2008 Olympics sponsorship and booming online games.

Net profit rocketed to US$21.6 million, or US$0.55 apiece, compared with US$4.5 million, or US$0.12 apiece, a year earlier, said the Beijing-based company in a statement on Monday, based on the American accounting standards.

Turnover soared 156% year-to-year to US$84.8 million in the same period, of which earnings from non-advertisement businesses contributed US$34.8 million, up 570% over the first quarter of 2007.

Sohu benefited from its Olympics sponsorship, which spurred companies to buy more advertising space on its Web site. And the pandemic "Tian Long Ba Bu" online role-playing game, introduced last May, also gave a boost to its earnings.

Sohu expected a turnover of US$93 million to US$96 million in the second quarter of the year. Its shares closed at US$70.81, up 14.51% in Nasdaq on Monday.