Baidu Says China's New Ad Restrictions Will Hurt Revenue Growth
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China’s Baidu warned that restrictions on online advertising will hurt revenue growth for the next two to three quarters, delivering the latest dose of bad news about China’s largest internet search service.
The company forecast lower-than-expected sales of $2.7 billion to nearly $2.8 billion this quarter, hit by government limits on the amount of ads it can show users. The bottom of that range translates to a decline of 1.9%, which would be the first drop at the search giant founded by Robin Li since at least 2007.
“The implementation of new regulations and the stricter standards that we proactively imposed to make our platform more robust will likely suppress revenue for the next two to three quarters,” Li said. “This period of uncertainty will pass.”
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