Phoenix New Media Limited Q1 FY2026 earnings call

• Content & Editorial Capabilities

  • Leveraged major domestic and international events to boost brand influence, user reach, and long-term engagement, demonstrating solid execution and mature content competitiveness.
  • Delivered fast, accurate, multi-format coverage of the US-Israel-Iran conflict, with on-the-ground reporting from Tehran and an exclusive early interview with stranded Chinese seafarers in the Strait of Hormuz, proving the firm's international news system is now industry-leading in maturity and responsiveness.
  • Covered China's Two Sessions with a mix of structured delegate interviews and targeted issue-based content, producing multiple policy-focused short videos that reached trending lists, balancing authoritative reporting with popular appeal.
  • Sports coverage performed strongly: total exposure for the Milan Winter Olympics exceeded 250 million, and Abu Dhabi Masters coverage integrated across TV, PC, mobile, and third-party platforms drew over 1.2 million live viewers and 15 million total reads.
  • Original long-form human-centered content remained a core competitive advantage: one episode of the firm's journey series reached over 80 million views and was followed up by major national media, with impact that is difficult for competitors to replicate.

• Product & Technology

  • Mobile app user engagement increased significantly, driven by major news events. The firm improved content structure and distribution to meet user demand for faster, clearer news, adding new sections like "On the Scene" and "World Affairs" to improve discoverability and user retention.
  • Continued integration of technology and content operations to improve overall operating efficiency, with a long-term focus on building a stable, scalable content system that can deliver reliable output during major news cycles, create strong original content, and adapt to new technologies.

• Commercialization

  • Solid progress was achieved via in-depth coverage of major international exhibitions including CES, MWC, and EWE, driving substantial growth in tech sector clients and tech advertising revenue. This validated the "international exhibitions + premium content + monetization" business model for the tech vertical, with actionable experience to expand to other verticals.

The firm recorded total Q1 2026 revenue of 108.8 million RMB, a 21.6% year-on-year increase. There are two core operating segments: 1) Net advertising: Revenue of 125.3 million RMB, representing a 4% year-on-year increase, accounting for approximately 66.4% of total Q1 revenue. 2) Paid services: Revenue of 63.5 million RMB, representing an 83% year-on-year increase, primarily driven by digital reading services offered through third-party applications, accounting for approximately 33.6% of total Q1 revenue. Cost of revenues decreased 5.1% year-on-year to 87.8 million RMB, while total operating expenses increased 29.5% year-on-year to 130.9 million RMB, driven by higher sales and marketing spend for digital reading services. Operating loss narrowed to 29.9 million RMB from 38.4 million RMB year-on-year, and net loss attributable to shareholders narrowed to 16.8 million RMB from 29.7 million RMB year-on-year.

• Management provided preliminary Q2 2026 revenue guidance forecasting total revenue in the range of 195.7 million RMB to 210.7 million RMB
• Net advertising revenue is projected to reach between 141.8 million RMB and 151.8 million RMB
• Paid service revenue is projected to reach between 53.9 million RMB and 58.9 million RMB
• All guidance is labeled as preliminary, subject to change due to substantial inherent uncertainties, and no prior guidance revision was noted in the call

• Near to medium-term macroeconomic headwinds and advertising budget pressure from certain industry categories are expected to continue
• No additional operational failures, material risks, or unplanned disruptions to business were discussed during the call

Q: With Q1 2026 year-on-year revenue growth achieved, can management share highlights, challenges, and the near to medium-term outlook for advertising revenue? / A: Q1 saw advertising budget adjustment pressure in some categories, but this pressure was offset by solid year-on-year growth from high-potential sectors including liquor, internet services, automotive, home appliances, finance, and retail. Emerging AI application advertising showed particularly strong momentum, and deeper involvement in international sports and exhibitions drove solid results, highlighting progress in international marketing capabilities. / A: Management notes brand marketing is shifting from chasing traffic to building deeper emotional user connections and long-term brand value, which aligns with the firm's core strength in content marketing. Macro headwinds and budget pressure will likely persist in the near to medium term, but the firm will optimize its client mix, focus on more resilient, high-growth sectors, and advance internationalization to strengthen competitiveness, with expectations of steady progress through 2026.