Phoenix New Media Ltd. Q1 FY2025 earnings call

• Showcased strong momentum in Q1 2025 with authoritative reporting on global events, driving content innovation and unlocking new commercial opportunities.
• Content team excelled amidst global trade volatility, regional political turbulence, etc., frequently breaking stories first. Developed unique IPs like KCA Link and Why It Is column, boosting engagement and brand trust.
• Tech channels like Tesla's FSD China rollout and other content innovations translated to commercial success, converting creative excellence to business value.

In the first quarter of 2025, Phoenix New Media's total revenue was CNY 155.2 million, a 1.4% year-on-year increase from CNY 153 million. Net advertising revenues were CNY 120.5 million, down from CNY 138.6 million in the same period last year. Paid services revenues were CNY 34.7 million, a 141% year-on-year increase from CNY 14.4 million, driven by digital reading services via mini programs. Cost of revenues decreased by 15.1% to CNY 92.5 million from CNY 109 million. Total operating expenses were CNY 101.1 million, a 25.6% year-on-year increase. Loss from operations was CNY 38.4 million vs. CNY 36.5 million last year. Net loss attributable to ifeng was CNY 29.7 million vs. CNY 26 million last year. As of March 31, 2025, cash and cash equivalents, etc., totaled CNY 984.5 million.

• Forecasts Q2 2025 total revenues between CNY 182.1 million and CNY 197.1 million.
• Net advertising revenues projected between CNY 148.7 million and CNY 158.7 million.
• Paid service revenues projected between CNY 33.4 million and CNY 38.4 million.

• Advertising business faced challenges in Q1 2025 with existing clients spending more cautiously, reducing average revenue per client.
• Seasonal fluctuations in industries, e.g., alcohol advertising dropped sharply, though progress in other industries like finance, etc., was made.
• Some client projects required high investment and cost, needing focus on refining creative content resources and events to maintain pricing premium.

Q: Could you please share some insights on the trends and outlook for the company's advertising business in Q1 2025?

A: In Q1 2025, advertising business faced severe challenges but team responded actively. Existing clients' spending cautious, average revenue per client down. Attracted new clients whose revenue grew. Some industries had seasonal fluctuations, but expanded in other industries. Focused on refining creative content to increase pricing premium. Looking to Q2, advertisers still cautious but improving, focusing on brand value and media influence, and exploring overseas marketing partnerships in China.