Chinese search engine Baidu Inc. might be reaping the benefits of Google’s China capitulation as Baidu announced its unaudited financial results for the first quarter ended March 31, 2010, and showed a 59.6% revenue increase year-over-year.

Total revenues in the first quarter of 2010 were CNY1.294 billion, a 59.6% increase from the corresponding period in 2009. Operating profit in the first quarter of 2010 was CNY530.8 million, a 167.4% increase from the corresponding period in 2009. Net income in the first quarter of 2010 was CNY480.5 million , a 165.3% increase from the corresponding period in 2009.

Traffic acquisition costs as a component of cost of revenues were CNY171.3 million, representing 13.2% of total revenues, as compared to 15.3% in the corresponding period in 2009 and 16.0% in the fourth quarter of 2009.

As of March 31, 2010, Baidu had cash, cash equivalents and short-term investments of CNY4.909 billion. Net operating cash inflow and capital expenditures for the first quarter of 2010 were CNY426.2 million and CNY105.3 million, respectively.