Feb. 8, 2010 (China Knowledge) - Sohu.com Inc<SOHU>, one of China's largest web portals, announced that its U.S. GAAP net profit reached US$42.40 million in the fourth quarter of last year, whereas it reaped US$59 million in the corresponding period in 2008, sources reported.

Earnings per share declined to US$0.76 and total operating revenue dropped 1% year on year, hitting US$135.8 million.

Sohu's 25% year-on-year decline in net profit was principally due to the dilution of its shareholding in Changyou.com Ltd<CYOU>, the firm's gaming unit, which was listed on the Nasdaq Stock Exchange in April last year.

Sohu realized US$50.3 million in non-GAAP net profit in the period from October to December. Earnings per share declined 4% quarter on quarter, reaching US$0.92.

For the whole year of 2009, the company booked US$176.4 million in GAAP net profit, up 11% year on year.

Sohu estimated that it will reap between US$123 million and US$128 million in operating revenue in the first quarter of this year. Advertising revenue will amount to between US$40 million and US$42 million and online gaming revenue will contribute between US$70 million and US$73 million.