Phoenix New Media Limited Q3 FY2025 earnings call

• Focused on quality content and brand impact, with reports on major social and cultural moments performing well across platforms.
• Strong coverage of major events: 5-hour live broadcast on Phoenix military channel during the September 3 military parade drew over 32 million views; live stream reporting on Typhoon Huajiasha with sharp storytelling; international column Phoenix Insights provided balanced analysis of the U.S.-Russia Summit.
• Successful offline events: Hosted Shanxi Culture and Tourism Development Promotion Event and Phoenix Bay Area Finance Forum 2025, generating significant online impressions.
• Key IP programs performed well: Mini documentary journey with human-centered storytelling and live stream commerce model; RizTalk maintained premium standards; Key Talk Alliance expanded international footprint.
• User engagement growth: Followers grew steadily across platforms, with Phoenix video accounts gaining nearly 0.5 million new followers; presence on RedNote expanding reach among younger audiences.
• Product optimization: Optimized APP experience around reading, interaction, and HarmonyOS ecosystem; strategic cooperation with HarmonyOS bore fruit, with Phoenix news app showcased at Huawei's launch and co-developed AI news feature and Phoenix TV highlights app.

Total revenues for the third quarter were RMB 200.9 million, a 22.3% year-on-year increase from RMB 164.3 million. Net advertising revenues were RMB 159.3 million, up 7.3% year-on-year from RMB 148.4 million. Paid services revenues were RMB 41.6 million, a 161.6% year-on-year increase from RMB 15.9 million, driven by digital reading services via mini programs. Cost of revenues increased 3.1% to RMB 105.2 million. Total operating expenses were RMB 109 million, a 23.6% year-on-year increase. Loss from operations was RMB 13.3 million, better than the same period last year's RMB 25.9 million. Net loss attributable to iFeng was RMB 4.9 million, improved from RMB 18.5 million last year. As of September 30, 2025, cash and cash equivalents, term deposits, short-term investments, and restricted cash totaled RMB 1 billion.

• Forecasted total revenues for Q4 2025 between RMB 205.9 million and RMB 220.9 million.
• Projected net advertising revenues for Q4 between RMB 171.4 million and RMB 181.4 million.
• Projected paid services revenues for Q4 between RMB 34.5 million and RMB 39.5 million. This forecast is subject to change and substantial uncertainties.

Q: The company's advertising business managed to grow in the third quarter despite market pressure. Could you please share how this was achieved? And what's your outlook for the ad market in Q4?

A: Thank you, Alice. It's a good question. Actually, achieving growth in advertising revenue under current conditions was not easy. Many clients are still very cautious with their budgets and their marketing is changing faster than before. This brought more challenges for us. Actually, we focus on 2 main areas. First, each client industry sales unit now works more closely with related content teams, sharing insights and taking joint responsibilities for business results. This helped us respond to clients faster and more precisely. Second, we followed the marketing trends and used our media influence to connect with more key clients. For example, in Q3, we organized the Shanxi Culture and Tourism promotion event, which involved the provincial government and multiple partners, strengthening our ability to serve public sector clients. Another highlight is our [ Star Anchor ] program. It started last year and has tripled its revenue this year. The program helps brand fans and train new generation hosts, meeting the rising demand for strong content creator. These efforts show how we are securing our position in the market. In the fourth quarter, competition will remain intense and cost control will stay critical, but we will keep focusing on innovation, improving our service capabilities and doing our best to maintain steady performance.