Sohu 4Q loss steeper than expected

Sohu.com, the Chinese internet company, saw its fourth quarter profit decline 43% to US$32.2 million, US$4 million short of the projected figure. The loss is attributed to the company’s decision to spinoff Changyou.com, its online games unit, into a separate entity. Gaming is considered one of China’s strongest growth sectors and Changyou previously contributed 94% of Sohu’s revenue in this segment. The company, which still holds a 71% stake in Changyou, is attempting to make up for its smaller share of the gaming business by cultivating stronger online advertising sales and video revenues.