Nov. 3, 2009 (Lintette Ng) Third quarter earnings for Sohu.com (NASDAQ:SOHU) showed signs of improvement after two consecutive quarters of negative net income growth. Based on third quarter results released on October 26, 2009, net income was $37.4 million which represented an increase by 12.9% from the previous quarter, but down 7% from third quarter last year. Nevertheless, it was a positive change after profitability declined from $56.6 million at the end of 2008 to $33.5 million in mid 2009.
The increased in profitability was attributable to rising revenues in its online game sector. Revenues from online games were $68.7 million, which was a 3% increase from last quarter, and a 25.8% increase from third quarter 2008. Massively multi-player online games (MMORPG) unit of Sohu.com (NASDAQ:SOHU), Changyou.com (NASDAQ: CYOU), reported a 9.5% increase in third quarter net income due to an increased popularity of their in-house developed Tian Long Ba Bu (TLBB). TLBB is one of the 3 online games offered by Changyou, alongside licensed Blade Online and Blade Hero 2. However, Changyou.com (NASDAQ:CYOU) currently still relies heavily on TLBB for profits, which is a significant business risk to both Changyou.com and Sohu.com (NASDAQ:SOHU).