Phoenix New Media Limited Q2 FY2025 earnings call

• Focused on enhancing content depth and impact while exploring diversified collaboration and monetization opportunities.
• Strengthened global Chinese language media leadership with high-quality original content and innovative business initiatives, e.g., Tang Bohu column's 7 deep dive articles on Israel-Iran conflict, military channels' live broadcasts on U.S. strikes on Iranian nuclear facilities.
• Phoenix News video accounts surpassed 5 million followers with annual views over 2 billion and projected revenue growth near 50%; tech channels video account grew to over 3 million followers with commercial revenue tripling y-o-y.
• Hosted 2025 China Enterprise Global Expansion Summit, featuring former UN Secretary General Ban Ki-Moon, and signed strategic agreement with CIIE at AIM Global Summit.

Total revenues for the second quarter of 2025 were RMB 187.1 million, representing an 11.2% increase year-on-year from RMB 168.3 million. Net advertising revenues were RMB 153.3 million, compared to RMB 154.7 million in the same period of the previous year. Paid services revenues were RMB 33.8 million, a 148.5% increase year-on-year from RMB 13.6 million, driven by digital reading services via mini programs. Cost of revenues decreased by 7.6% to RMB 95.1 million from RMB 102.9 million in the same period last year. Total operating expenses were RMB 99.2 million, a 33.5% increase year-on-year from RMB 74.3 million. Net loss attributable to iFeng was RMB 10.4 million compared to RMB 5.5 million in the same period last year.

• Forecasts total revenues for Q3 2025 to be between RMB 203.4 million and RMB 218.4 million.
• Projects net advertising revenues for Q3 to be between RMB 168.4 million and RMB 178.4 million.
• Expects paid services revenues for Q3 to be between RMB 35 million and RMB 40 million. This forecast is subject to change and substantial uncertainties.

Q: Regarding recent industry reports showing the overall advertising market remained relatively flat for the first half of the year, how would that affect the company and what's the outlook on the core business segment?

A: Yes, the overall ad market wasn't strong in the first half. In Q2, many advertising clients were cautious. Different client sectors had varying performances; entertainment, tourism, and retail did well, while auto, alcohol, and real estate slowed. The company kept ad business relatively stable by understanding client needs, leveraging strength as a trusted mainstream outlet, and citing examples like the Global Expansion Summit which received positive feedback.