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Baidu's profits flat on marketing costs

China's largest search engineBaidu Incsaid Thursday that its net profits slid 0.4 percent year-on-yearin the fourth quarter of lastyear to 2.78 billion yuan ($460 million).


The slight drop was mainly due to climbing marketing costsespecially for its mobile products.

The company's expenditures in salesgeneral business and administration surged 135.1 percent year-on-yearto 1.86 billion yuan in the finalquarteraccording to an unaudited business statement.

Its revenue surged 50.3 percent from a year earlier to 9.52 billion yuan in the final quarterindicating healthy growth.

Li Yanhongthe company's chief executivesaid the company has made remarkable progress in the mobile business and established aleading position in the mobile marketincluding in searchmobile application distribution and location-based services.

In the fourth quartermobile business accounted for more than 20 percent of Baidu's revenueLi said.

In 2013, the company's total profits edged up 0.6 percent to 10.52 billion yuanand its total revenues soared 43.2 percent to 31.94 billionyuan.



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