China's Sohu.com Q2 revenue rises on growth in online gaming
China's Sohu.com Q2 revenue rises on growth in online gaming
Overview
China online media and game firm's Q2 revenue rose 7% yr/yr, net income turned positive
Company's net income benefited from reversal of $13 mln tax expense
Share repurchase program extended, $124 mln of ADSs repurchased to date
Outlook
Sohu.com sees Q3 marketing services revenue between $14 mln and $15 mln
Company expects Q3 online game revenue between $105 mln and $115 mln
Sohu.com forecasts Q3 net loss attributable to company between $13 mln and $23 mln
Result Drivers
ONLINE GAME PERFORMANCE - Year-over-year online game revenue growth was mainly driven by the PC game TLBB: Return, launched in Q3 2025
MARKETING SERVICES INITIATIVES - Co attributed sequential growth in marketing services revenue to refined products, diverse events and content, and efforts to address advertiser needs
DECLINE IN OLDER MOBILE GAMES - Quarter-over-quarter declines in mobile game users and revenue were mainly due to the natural decline of some older games
Company press release: ID:nPn8cbyQQa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $135.54 mln |
|
Q2 EPS |
| $0.04 |
|
Q2 Net Income from continuing operations |
| $235,000 |
|
Q2 Operating Expenses |
| $124.88 mln |
|
Q2 Operating Income |
| -$18.30 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for Sohu.com Ltd is $19.00, about 38.6% above its August 7 closing price of $13.71
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)