12:00PM New York - China’s biggest internet service provider Baidu.com reported full-year profit rose by 108.4% to Rmb 574.2 million as revenue per online marketing customer increased 39.7 to Rmb 8.100.

Quarterly Earnings Review

Baidu.com reported revenues in the full year ended December 31st increased 108.2% year-on-year to Rmb 571million as the number of online marketing customers rose 8.4% to over 155,000. There was also an increase in user traffic and market share.

In the quarter ended December 31st, net income increased 79% from a year ago to Rmb 219.8 million. Basic earnings per share jumped to Rmb 6.32.

For the quarter, operating profit jumped 73.3% from a year earlier to Rmb 176.3 million.

Adjusted EBITDA in the period advanced 87% from a year ago to Rmb 247 million.

Annual Earnings Review

Baidu.com reported full-year revenues increased 108.2% year-on-year to Rmb 1.741 billion as online marketing revenues grew 110.1% to Rmb 1.74 billion.

In the full year ended December 31st, net income rose 108.4% from a year earlier to Rmb 629 million. Basic earnings per share rose to Rmb 18.57.

For the year, operating profit jumped 108.1% year-on-year to Rmb 547.2 million.

Adjusted EBITDA for the year rose 101.2% over the year to Rmb 768 million.

Revenue

In the fourth quarter ended December 31st, online marketing revenue grew 111.2% to Rmb 569.6 million led by increases of active online marketing customers and revenue per customer.

Active online marketing customers increased to 155,000.

Furthermore, revenue per online marketing customer increased 5.7% from the previous quarter and 4.8% from last year to R 3.700.

Traffic Acquisition Costs

TAC was 12% of total revenues compared with 8.7% last year.

For the year, TAC grew to 11.7% of the total revenue to Rmb 204.7 million compared to 9% growth in 2006.

Bandwidth Costs

Costs in this segment in the fourth quarter represented 63% of total revenue from 4.7% in 2006. Depreciation costs as a component cost of revenues was Rmb 46.7 million, which is 8.2% of total revenues.

Selling, General and Administrative Costs