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Last Updated: Tuesday, 8 July, 2003, 13:10 GMT 14:10 UK
Sars boosts Chinese online profits
Sohu.com
A Chinese internet firm has become one of the first Asian companies to thank the deadly Sars virus for creating higher profits.

Sohu.com, one of the country's leading online portals, said that revenue had more than doubled in the three months to end-June, as wary Chinese clients stayed at home and surfed the net.

Although now largely conquered, Sars created a wave a fear across Asia and beyond, killing 812 people worldwide and infecting at least 8,400.

During the quarter, Sohu made a profit of $7.5m (�4.5m), compared with a slight loss a year earlier.

Sohu's success comes in sharp contrast to a string of Asian firms, especially in tourism and other services businesses, which have blamed the disease for a slump in trade.

Back from the brink

Along with rivals Sina and NetEase, Sohu is enjoying a period of extraordinary success.

A year ago, the Chinese online sector was in the doldrums, battered by global hi-tech gloom and the sluggish development of the once-promising domestic market.

But a revival in investor sentiment - not apparently based on any fundamental upturn - has seen their shares power back to record highs this year.

Sohu shares have risen by 450% this year, and 25-fold from a year ago, and the market now values the firm at $1.2bn.

Keen to capitalise on its strong results, Sohu announced plans to raise $65m via a bond issue.


SEE ALSO:
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23 Apr 03  |  Business
The cost of China's web censors
23 Sep 02  |  Business
China's baby steps in e-commerce
24 Sep 02  |  Business
Behind China's internet Red Firewall
03 Sep 02  |  Technology


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