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Baidu Reduces Revenue Forecast on Advertising Restrictions

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Baidu Cuts 2Q Revenue Forecast on Ad Restrictions

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Baidu Inc., China’s biggest internet search engine, cut its revenue forecast for the second quarter, saying regulatory restrictions reduced advertising from drug companies and other health-care groups. Shares declined as much as 8.9 percent in extended trading after the announcement.

Sales are projected at 18.1 billion yuan ($2.81 billion) to 18.2 billion yuan compared with its previous forecast of 20.1 billion to 20.6 billion yuan. New regulations on online marketing by health-care companies have caused a reduction or delay in ads from a significant portion of medical customers, Baidu said in a statement Monday.