Phoenix New Media Restricted (FENG) Q1 2024 Earnings Name Transcript

Phoenix New Media Restricted (NYSE:FENG) Q1 2024 Earnings Convention Name Might 13, 2024 9:30 PM ET

Firm Contributors

Muzi Guo – Investor Relations Supervisor
Yusheng Solar – Chairman and Chief Govt Officer
Edward Lu – Chief Monetary Officer

Convention Name Contributors

Alice Tang – First Shanghai Securities Restricted

Operator

Good day and thanks for standing by. Welcome to Phoenix New Media First Quarter 2024 Earnings Name. At the moment, all contributors are in a listen-only mode. After the audio system’ presentation, there can be a question-and-answer session. [Operator Instructions] Please be suggested that at the moment’s convention is being recorded.

I’d now like at hand the decision over to, Muzi Guo from IR Division. Thanks. Please go forward.

Muzi Guo

Thanks, operator. Welcome to Phoenix New Media’s earnings convention name for the primary quarter of 2024. Becoming a member of me right here at the moment are our CEO, Mr. Yusheng Solar; and our CFO, Mr. Edward Lu.

Throughout this name, our administration group will start by offering an summary of our quarterly outcomes, adopted by a Q&A session. You will discover the monetary outcomes for the primary quarter of 2024 in addition to the webcast of this convention name on our web site at ir.ifeng.com. A replay of this name will even be made out there on the web site throughout the subsequent few hours.

Earlier than we proceed, I want to draw your consideration to our protected harbor statements, which might be present in our earnings press launch. This assertion is vital because it pertains to our forward-looking statements throughout the name. Moreover, please be aware that except in any other case specified, all figures talked about all through this convention name are in RMB.

Now I might wish to move the decision to Mr. Solar, our CEO, for his opening remarks. I’ll present the interpretation.

Yusheng Solar

[Foreign Language]

Muzi Guo

[Interpreted] And I’ll present the interpretation now. Hi there, everybody. I am happy to report on the corporate’s operational progress within the first quarter of 2024 and interact in discussions on subjects of curiosity. The primary quarter of 2024 began off effectively. Regardless of the continued macroeconomic uncertainties, the group overcame many challenges and achieved our efficiency targets.

On the content material entrance, we remained dedicated to our media values, constantly delivering high-quality content material to strengthen model worth and affect. We repeatedly optimized and iterated our content material and advert merchandise.

And in promoting gross sales, we’re centered on trade methods, aligning content material with the wants of trade shoppers. We intention to take care of this optimistic operational momentum and try to realize our annual operational aims.

Now I’ll invite Edward to supply a extra detailed abstract of our first quarter outcomes. Edward, please go forward.

Edward Lu

Within the first quarter of 2024, we made vital progress in extending our media affect thereby driving the profitable monetization of our contents. We proceed to guide in reporting main information occasions, reaching glorious viewers attain and engagement. In the course of the Taiwan management election, with out the [sole] mainland-based information app providing actual time protection, excelling in pace distribution, and the content material high quality, we collaborated with contributors from varied views and our complete articles had been broadly republished by main Mainland and Taiwanese media retailers.

In February, our journalists in worldwide affairs supplied stay protection from the Munich Safety Convention. Our in-depth article titled Munich unfolded within the vital publicity and the readership on our information app and the third-party social media platforms. It had acquired reward from consultants at famend establishments akin to Peking College, the Chinese language Academy of Social Sciences, and the Tsinghua College, in addition to recognition from different mainstream media retailers akin to [indiscernible] and CGTN. This additional solidified since media affect in worldwide affairs.

Along with onsite updates, we revealed the quick movies on third-party video platforms, garnering over 3 million views and tens of thousands and thousands of exposures by media studies.

Within the rising sector of tradition and the tourism, we continued in enhancing our content material product choices by collaboration with native authorities, capitalizing on our content material creation and occasion administration experience. The second finance and economics occasion, [Chengdu] Mountain Discussion board was organized in collaboration with regional tradition and the tourism bureaus and sponsored by native companies and companies.

The occasion posted distinguished company from academia, politics, and influential key opinion leaders’ sight towards the scenic backdrop of Snow Mountains. The discussion board featured [indiscernible] carnivals and elevated visitor experiences. It garnered vital media protection, serving as a major instance of efficient model advertising within the tradition and the tourism trade.

Our unique investigative collection, Eye of the Storm remained devoted to delivering high-quality in-depth reporting on trending matter, producing a number of articles that assist 100,000 levels benchmark on [indiscernible]. Past reaching vital visitors, Eye of the Storm earned a declare from its precept stance on contentious points upholding media ethics and values.

In January, a finance China accountable for producing Eye of the Storm was honored with the Good Information Award from the China Banking Affiliation, acknowledging iFeng Finance, optimistic affect of the monetary sector. Our presence on third-party platforms proceed to develop within the first quarter. Our vogue video platform accounts gained 400,000 new followers, surpassing 3 million in whole, reflecting our dedication to producing fascinating content material for a broader attain.

In the course of the March, explosion in Hebei, our [indiscernible] accounts stay streamed the iFeng, drawing over 1 million viewers. In whole, this stay stream and subsequent quick movies garnered 46 million cumulative views and attracted 18,000 new followers, re-enforcing our repute for being constantly on iFeng for breaking information and enhancing person engagement.

Our content material initiatives construct tangible enterprise outcomes in Q1 following the restructuring of our gross sales division final yr. Gross sales and content material methods had been higher attuned to trade wants, leading to progress throughout various sector. We noticed a transparent trade methods and enhanced market penetration whereas the restructuring posted professionalism and the effectivity in market improvement.

Moreover, yr was notable enchancment in content material assist and collaboration, Q1 web promoting income exceeded expectations marking our 10% year-on-year improve. Total, in Q1, we proceed to counterpoint our content material choices, bolster our media affect and strengthen content material monetization.

Trying ahead, challenges persist within the face of tighter content material budgets and the heightened competitors, value management all through venture execution is paramount to make sure profitability. Nonetheless, we’re assured in our capacity to reinforce operational and business effectivity and obtain our enterprise aims within the upcoming quarter.

This concludes our CEO Mr. Solar’s ready remarks. I’ll now stroll you thru our monetary efficiency for the primary quarter of 2024. All figures talked about can be in RMB.

Our whole revenues had been RMB153 million, representing a rise of 4.5%, RMB146.4 million in the identical interval of final yr. To elaborate, web promoting revenues had been RMB138.6 million, representing a rise of 9.8% from RMB126.2 million in the identical interval of final yr.

Paid providers income had been RMB14.4 million in comparison with RMB20.2 million in the identical interval of final yr. The lower was primarily because of the decline within the revenues from licensing of sure copyrighted content material, and in e-commerce revenues.

Value of revenues within the first quarter of 2024 decreased by 7.7% to RMB109 million from RMB118.1 million in the identical interval of final yr. And the gross margin within the first quarter of 2024 elevated to twenty-eight.8% from 19.3% because of strict value management measures applied.

Loss from operations was RMB36.5 million in comparison with loss from operations of RMB74.4 million in the identical interval of final yr. Internet loss attributable to ifeng was RMB26 million in comparison with web loss attributable to ifeng of RMB57.8 million in the identical interval of final yr.

Shifting on to our steadiness sheet. As of March 31, 2024, the corporate’s money and money equivalents, time period deposits, short-term investments and restricted money had been RMB1.03 billion or roughly US$143million.

Lastly, I might like to supply our enterprise outlook for the second quarter of 2024. We’re forecasting whole revenues to be between RMB150.2 million and RMB165.2 million. For web promoting revenues, we’re forecasting between RMB141.9 million and RMB151.9 million. For paid providers revenues, we’re forecasting between RMB8.3 million and RMB13.3 million. This forecast displays our present and the preliminary view, that are topic to vary and the substantial uncertainties.

This concludes the ready portion of our name. We are actually prepared for questions. Operator, please go forward.

Query-and-Reply Session

Operator

Thanks. [Operator Instructions] Our first query comes from Alice Tang from First Shanghai. Please go forward.

Alice Tang

Good morning. Thanks for taking my query. So the corporate achieved income progress within the first quarter. So might administration please focus on your views on the present promoting market within the first quarter in addition to the alternatives and challenges for firm income and expectations for the second quarter, please? Thanks.

Edward Lu

Hello, Alice. Thanks for the query. Really the promoting market confirmed promising traits within the first quarter of this yr. We imagine it aligns with the restoration of financial surroundings with a slight year-on-year improve. Nonetheless, in accordance with third-party trade information, the expansion was primarily concentrated in offline promoting akin to [indiscernible] stations.

Web promoting, alternatively, skilled a big double-digit decline in such a market surroundings. Reaching year-on-year progress was significantly difficult for us. Our Q1 outcomes confirmed that our organizational restructuring final yr was fairly efficient, which centered extra on assembly our shoppers’ trade calls for. Particularly, we noticed robust progress within the meals and beverage trade, particularly in alcoholic beverage, leisure, leisure, on-line providers and digital merchandise, industries additionally skilled progress, which is according to the general efficiency of the promoting market segmented by trade.

It additionally price mentioning that we made vital progress on the monetization of our third-party social media accounts. Via a secure fan base and current content material advertising, we attracted prime new vitality car firms that primarily give attention to web advertising. Moreover, we attend many new shoppers in shopper electronics, meals and beverage and cosmetics.

The promoting market in 2024 nonetheless holds progress potential. By the way in which, perceive that with macroeconomic change and elevated competitors, advertisers might handle promoting budgets extra cautiously. We have to precisely grasp advertisers’ wants and regulate our methods. Additionally, I believe we have to guarantee the corporate’s value effectivity, put earnings first above all else. Thanks, Alice.

Alice Tang

Thanks, Edward.

Operator

Thanks for the questions. There aren’t any extra questions from the road. I want to hand the decision again to Muzi Guo for closing remarks.

Muzi Guo

Thanks. That concludes our earnings convention name. Please be at liberty to contact us when you have any additional questions. Thanks for becoming a member of us at the moment on this convention name. Have a superb day.

Operator

That does conclude at the moment’s convention. You could now disconnect. Thanks for all of your participations.