FENG - Earnings call transcript Q2 2022 | Phoenix New Media Limited

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Operator

Thank you all for standing by, and welcome to the Phoenix New Media Second Quarter 2022 Earnings Call. [Operator Instructions]. And I'd now like to hand the conference over to your speaker, Muzi Guo from Investor Relations. Thank you, please go ahead.

Muzi Guo

Thank you, operator, and hello, everyone. Media's XXXX New Conference Phoenix to Second Earnings Quarter Call. Welcome CEO, here today joined Mr. by I'm our Shuang Liu; CFO, and our Mr. Edward Lu. conduct On today's the Q&A then of a provide session. a call, management quarterly will results first review and

results financial on hours. call a available at will XXXX quarter available website second and of the call our of this replay A few on webcast ir.ifeng.com. be are conference the in The website

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Shuang Liu

Hello, our to continued everyone, for quarter you second the Muzi. business. call In pressure XXXX, thank the COVID joining of on our and you, nationwide today. exert resurgence Thank

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to share would revenue in progress like diversification. our I Lastly,

to premium reading, we of our continue from For our online collection literature. IP monetize

audio of our of entered into release. [Foreign book with produced our Meanwhile, audio a progress significant with top since we audio sales as books Cloud music. copyright with list. self-produced Our Language] book Himalaya reached agreement X views in Himalaya Monetization new million made jointly also the a X NetEase books rank X months its

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influence XB efforts. growing, C thanks both Our to and were these

the to sales for In the not meet operational eliminated expectations efficiencies. team improve profitability did city team and that structure optimized certain divisions addition,

for As digital e-commerce, Phoenix quarter. Artworks, [Foreign we launched our the collectible during Language], platform,

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while the provide bridging headwinds we can diversify to our focusing call revenue our and we enrich quarterly emerging prudently such, cautiously and of our new we business to In CFO, streams. upgrade in Edward in solutions. evaluated sale strengthening will events, our to content influence our As I future, manage through into offerings look our our the they to business that, operations brand despite With to believe summary, marketing and business now development addition remain Lu growth continuing new initiatives coverage time, will at complement committed signature turn we macro the the and product. digital At a invested areas. on In events future to our same our while that, the financials. closer collectibles,

Edward Lu

walk through second everyone. quarter our financial Shuang, will XXXX. I and Thank of the performance you now you, hello, for

XX.X certain RMB customers. to compared compared period RMB RMB driven XX.X year. of RMB to year. XXXX million million operations primarily same XX.X XX.X content year. Net was to the the Our from spending increase compared XX.X the total to regions of COVID-XX the mainly impact was attributable period to of decrease industry-wide XXX.X certain in million year. last last RMB same Paid million certain The outbreak revenues advertising last period in the revenues loss To the sales XXX.X was in due period China Loss last advertisers XXX competition second period were to industries, services and compared in the the revenues in reduction of second million RMB XXX.X was million elaborate, in quarter. compared were the in RMB same in negative iFeng of in by advertising to of million the RMB same net RMB of were RMB The in million the in increase million X.X of million the same the year. intensified to last as in quarter

cash the term sheet, XXX.X Moving our or to on company's RMB USD and million. investments and XXXX, as cash June balance equivalents, billion deposits, cash of X.XX were restricted approximately short-term XX,

Finally, I'd third business outlook XXXX. to like for of provide quarter the our

to revenues million be XXX.X XXX.X RMB between total forecasting RMB are We and million.

revenues, we between forecasting RMB For XXX.X million RMB and are net advertising million. XXX.X

This team For expenses, paid In experienced the our preliminary impact service advertising outbreak revenues, uncertainties. change summary, and COVID current XX.X XXXX. forecast of of million view our continued managed are between business the optimized proactively our and operating RMB XX.X due streamlined during which structure substantial to operations efficiency. improve reflects and our to the RMB In and to our quarter subject pressure second we million. are we response, forecasting

Despite portion sustain continue adversities margin call. us Going to investigating us to prepared revenue initiatives mix. prepare endeavors future. of setbacks, stream the through short-term forward, in our the we better will a believe achieve improve we our new these concludes will This recovery business to and our the

We are ahead. for Operator, questions. ready please now go

Operator

Instructions]. [Operator

from first from comes Xueru XX question Research. Our Zhang

Xueru Zhang

about I business. have question the one app

market. first of tough the was So year app the half for this

for half, does you some recovery we head the on trend? the Also, I second into the management share outlook any half? could observe growth color As second wonder

Shuang Liu

during we Thank quarter, were no exception. yes. you. macro the is companies and Actually, the Many from last headwinds suffered answer the

Our for and remotely teams to from in time. work Shanghai home Beijing had some

our did so clients. major of many And

year-over-year With so even much to slowing growth more. from demand about affected January that were total XX% economy the uncertainties, softens. May, and industries Certain advertiser spending down by the marketing over decreased shows

January to of branding COVID impact, sales the auto in help growth. businesses example, however, From marketing spending again the their For economy May. recovers June, to to XX% our as marketing around from from started and gradually major dropped once industry, by invest client their one industries,

up. intense. for this competition we that, very given is the pick So our hope rest we that the revenue will said admit Having have the to of advertising year, trend continues,

demand budget, ever their As comprehensive advertisers tighten for growing. solutions is their marketing

to differentiation. and our quickly that respond to fund have own We

through nearly year, platforms First, breaking advantages. Actually did our by the are not core the our brand but user the content, our our and half image and increase first only increased . base on app, XX%, our media we reaching engagement influence also news coverage third-party in in iFeng of user original

While convey also time, utilizing same reach we we introducing brand help international our advertisers collectibles and background base. digital and customer fulfill such to perspective. exposure, to their escalate we the brand tools and advertisers' a can as characters marketing broader need help At for them are marketing, creative stories virtual their creative

We series conduct their activities. of and branding to more international products helping created have expand a exposure advertisers overseas

Xueru. the well service, in of these all hoping growth our efforts, Our see year. to in Thank by recovery received With advertising joint was example, advertisers. revenue are Global second you, Observer we for half the our

Operator

Our next question Shanghai. from from Alice comes Tang First

Alice Tang

question was side. measures. cost implementing So that cost mentioned my company earlier the regarding control was It is the

this company's the disclose cost you will be strategy? long-term future? So could a the in trend And please continuing

Shuang Liu

mentioned years. the our Alice, thank you for goal profitability to is to in as our X to call, Actually, X on last return your question. next

be resource the priority. in such, our And near future. efficiency to will our As continue optimizing and our is increasing allocation this focus top

higher During the quarter, in margin. drive project, level, to we on execution continue demanding project closely we areas cost gross second structure a the all efficiency each reviewed day-to-day of

be resources, If limited not new the quickly projects. being I to off clear overall performance they pay set In so growth have cost your to of especially even too with initiatives, a or or not, conduct had Alice, down and previous have our should we level, which pilot whether thorough as cautious and expectations, frequent on the reviews. answered business measurements we lines, labor optimization, met With they we scaled be analysis terms respond results in on question. following better marketing, on higher Also hope did bandwidth, quarter. I drive with and closed. cost to we have

Alice Tang

Yes. That's very helpful.

Operator

That was final Thank you. our question.

for management closing back to hand comments. will I So

Muzi Guo

Thank you.

Q&A our and We end the our session now come conference to of have call.

Your time appreciated. much is very

this questions, contact joining you any today Thank us day. on feel for a to you If good and please have have further call, free us.

Operator

does conference joining. call. so much. conclude for all you This Thank Thank today's you

now may You disconnect.

Phoenix New Media Limited (FENG) 16 Aug 222022 Q2 Earnings call transcript