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Sohu Lifts Q4 Outlook On Strong Performance In Online Game Business

Chinese online media and gaming business Sohu.com Limited (SOHU) announced Friday that it is lifting fourth-quarter outlook.

The revision in outlook is based on better than expected performance of the online game business, a tax benefit of $19 million expected to be recognized for some of Changyou's subsidiaries, and an impairment charge of approximately $23 million for an investment unrelated to the Company's core businesses.

For the fourth quarter of 2019, Sohu now estimates attributable net loss, including the expected impairment charge, between $15 million and $25 million or $0.40 to $0.65 per ADS. The previous outlook was attributable net loss between $17 million and $27 million or $0.45 to $0.70 per ADS.

Excluding the impairment charge, adjusted attributable net income would be between nil and $10 million or nil to $0.25 per ADS. The previous outlook was loss between $12 million and $22 million or $0.30 to $0.55 per ADS.

Excluding the profit generated by Sogou and Changyou, and further excluding the expected impairment charge, adjusted net loss would be between $45 million and $50 million.

The company now projects total revenues between $465 million and $500 million, compared to earlier estimate of $435 million to $470 million.

Online game revenues are now projected to be between $125 million and $135 million, up from previous estimate of $95 million to $105 million.

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