SHANGHAI, Oct 31, 2007 -- CHINESE portal Sohu.com posted a 47-percent jump in third quarter earnings yesterday on record advertising revenue and sales of a new online game.

The Beijing-based Website had a net income of US$9.69 million, or 25 US cents per fully diluted share, from US$6.6 million, or 17 US cents, a year earlier. Sales expanded 46 percent from a year ago to US$51.5 million, exceeding its previous guidance by US$4.5 million, it said in a statement.

"We have exceeded all of our guidance for each of our revenue categories as well as earnings because of our focus on technology and our long-term vision, such as our investment in our first in-house developed online game Tian Long Ba Bu and our Beijing 2008 Olympics sponsorship," said Charles Zhang, chairman and chief executive officer of Sohu.

Online ad revenue in the quarter rose 32 percent to US$31.5 million, helped by a record high brand advertising sales. The Website, the only official Web partner of next year's Beijing Olympic Games, also took advantage of its sponsorship as Olympic partners have to advertise on Sohu as long as they want to use the Olympic logo in their ads, citing a rule that its rivals still dispute with.

It has increased its ad rate by an average of 37 percent in the second and third quarters this year, against a usual annual rise of 15 percent, on strong demand for online ads, according to Morgan Stanley.

Sohu's game revenue soared 473 percent year on year to US$12.7 million as its self-developed online role-playing game, Tian Long Ba Bu which was launched in May, contributed US$10.9 million.

It expects fourth quarter revenue at between US$53.5 million and US$55.5 million.