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Aug. 1 (NBD) -- Chinese search engine giant Baidu Inc (NASDAQ:BIDU) released earnings for the second quarter of 2018 on Wednesday. 

The company reported a revenue of 26 billion yuan (3.8 billion U.S. dollars), up 32 percent year on year. The net income attributable to Baidu stood at 6.4 billion yuan (937.1 million U.S. dollars), representing a year-over-year increase of 45 percent. 

Baidu's revenue arising from mobile terminals contributed 77 percent to the total net revenue, compared to 72 percent for the same period of last year. Revenue from information flow and artificial intelligence (AI) business posted growth of over 150 percent and accounted for about 20 percent of the company's total.

It is noted that the company registered higher content costs in that quarter, which was led by iQIYI's increased content costs as well as rising investment in Baijiahao, Baidu feed's content network.

Based on the strategy to consolidate Baidu's mobile foundation and lead in AI, the company spinned off its financial business and DU Ad Platform business in April and May this year, respectively. DU Ad Platform is the company's international mobile ad platform for mobile developers. 

Herman Yu, CFO of Baidu, said in the report that Baidu will continue to increase investments in AI-powered businesses with strong synergies and divest non-core businesses.

In June 28, the technology giant partnered with China Unicom to found a joint lab with a focus on 5G and AI. The two sides are expected to explore innovative products and business models in the fields including 5G, Internet of vehicles and AI.

Email: zhanglingxiao@nbd.com.cn