Sohu reported an income of $852 million in 2011, 39 percent higher than the same period a year earlier, according to data from the fourth quarter and full year earnings report released by Sohu.

Sohu also earned a new high of $246 million in the fourth quarter of 2011, up 42 percent from the same period of 2010. It is the first to announce the 2011 earning results among the four Chinese Internet portals: Sina, Sohu, NetEase, and Tencent.

The net profits of Sohu amounted to $228 million in 2011, a growth of 15 percent year on year before the non-controlling rights were deducted, in accordance with the US Generally Accepted Accounting Principle (GAAP).

By Dec 31, 2011, Sohu had maintained its debt-free financial situation with an amount of $733 million in cash and cash equivalents. Sohu is expected to earn $219 million to $225 million in the first quarter of 2012. Its earnings from brand advertising went from approximately $63 million to $60 million, a decrease of 19 percent and 23 percent compared with those in the fourth quarter of 2011. Sogou business is predicted to have about $21 million of earnings in the first quarter, down 9 percent.

Yu Chuyuan, co-president and Chief Finance Officer of Sohu said Sohu's increase in the investment in online video and other fields will put create pressure on the company's short-term financial performance.

Edited by Chen Zhilin and Rakhee M