Sohu: profits down 15% while revenue rises to $137m

China's second biggest internet portal Sohu.com has reported a 15% drop in profits in third quarter, despite sales rocketing to a record high, Bloomberg reported. The company's net income fell to US34.4 million from US$40.3 million, while sales rose 13% to US$136.6 million. Profits dropped on a lower share of earnings from Sohu's online games unit, Changyou.com, which was seperately listed in a US$138 million initial public offering in April. Revenue from online games rose by a record 26% due to the popularity of its Tian Long Ba Bu multiplayer game, as well as a new game, Blade Hero 2. Chairman Charles Zhang said he expected Sohu's online game business to continue to grow, with fourth quarter sales up to US$138.5 million.