Internet news platform Sohu posted a profit of $79 million in 2021, up 54.9% year-on-year

The web portal and video-sharing website derived much of its 2021 revenue from online games (SOHU: Nasdaq), one of China’s largest internet service providers, released its non-GAAP results for the fourth quarter of 2021 on Feb. 22. The company raked in $193 million during the this period and achieved a turnover of 836 million dollars. for the whole year.

Sohu, a major online media, video-sharing and gaming platform, posted non-GAAP earnings of 1 cent per share, beating Zacks’ consensus estimate by a margin of 101.6%.

Despite a 23.8% year-on-year (YOY) decline in revenue in the fourth quarter, Sohu’s 2021 revenue increased 11.4% year-on-year.

The company’s financial report says that of the $139 million, some $34 million came from advertising, down 20% year-on-year and flat quarter-on-quarter.

An additional $144 million was attributable to online gaming, down 27% year-on-year and 14% quarter-on-quarter, primarily due to lower revenue from Little Raccoon: Heroa mobile game.

For the full year, brand advertising contributed $135 million and online gaming $638 million; Non-GAAP net income from continuing operations attributable to Sohu was $79 million, up 54.9% year-on-year.

Amid the continued challenges of a changing macroeconomic environment and the uncertainties brought by the COVID-19 pandemic, Sohu said the company has been proactive in “refining our technology, developing product innovations, improving operational efficiency and exploring differentiated monetization opportunities”.

Dr. Charles Zhang, Chairman and CEO of Sohu, attributed the company’s profits to “better user experience through improved products and social interaction features.”

“We have applied advanced live streaming technologies to large and unique content marketing events,” Zhang said. “Based on the competitive advantages of the Sohu product matrix, these livestreaming events have helped us generate a high volume of premium content and broad social distribution.”

Sohu’s domestic competitors in internet information services include NetEase, Sina and Tencent.