Earnings call transcript Q1 2023

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Operator

Good day, and thank you for standing by. Welcome to Phoenix New Media First Quarter 2023 Earnings Call. [Operator Instructions].

I'd now like to hand the conference over to Muzi Guo from IR Department. Please go ahead.

Muzi Guo

operator. you, Thank New Phoenix Quarter Earnings XXXX Welcome Media's Call. Conference to First webcast results website conference financial quarterly of at and our The on the this available call ir.ifeng.com. are in be replay on A call hours. will the the of website a few available

unless which to as harbor Before to stated, this conference earnings statement otherwise today include in remind we refer well. Please release, remarks opportunity forward-looking our our take statements. RMB. mentioned would applies that to figures get call during I are will call started, Also to like this you our all press safe the in

Joining are Executive of Officer; Chairman the Financial us Chief Edward the Mr. on Chief Lu, call Mr. Yusheng and the Officer. today Board and Sun,

his brought Mr. call. company, in have Sun leading became wealth CEO a and the to him our expertise is time us. He we first the at to has end experience This of and participating excited our are March. of

turn further him now Without over his afterwards. him translating I offer I to to ado, will for be will the call greetings.

Yusheng Sun

and pleasure Dear my is Sun. exceptional name Yusheng to with as My I'll everyone. is this team. greetings New work join It CEO. Phoenix to shareholders, Media investors

honored to the We direction will the first Media challenges. breakthroughs and its is participating underlying This future. Phoenix I the here. the a numerous Currently, new conference clarify to the industry of our facing need do New company and be in causes, time and call, am my development. my best take are to I investor analyze to identify level in

prudence. and unique while on on sustain media continue maximizing into creating this, we emphasis fiscal platform focus must a and expanding Chinese profitability. and to world-class achieve evolve online to is curating exercising streams content, goal To Our content revenue high-quality dissemination influence our with a

forward, our and order talent objectives. must and such we operations, team in As areas fostering development in to innovate explore acquisition realize as and we enthusiasm move management, creativity

support company, the achieving Phoenix success of a forward everyone Thank Media collective has future. the I I in promising together. New ongoing that to am With efforts and your look confident for further you

take the XX the And today, I over and current the Mr. will thank to years future also States thank senior management company like contributed Liu, for and to as the CEO took over personal in year stage from ago public endeavor. also of develop times. the his at his past to to led all contribution Shuang end those resigned you. the company we in who He he company CEO the Thank and him for the reasons best March. And and the the as opportunity company for him wish to here,

to remarks This of go concludes who then prepared we will Mr. behalf ahead. will CFO, remarks, open Mr. the the through read Lu, call on our I first now and call turn Sun's Edward, the go greetings. please prepared over for questions. results. Sun Mr. financial will Edward the the After

Edward Lu

X to XXx Interviewed market with [indiscernible] list Sessions Thank our you, in and Weibo. the column, XXXX, role first government's during the and exposure on received attention demonstrate media XX hot ranking news, hot continue our curation events quarter Dialogues we Muzi. In on of and search reporting delegates extensive Delegate. the topic leading of video and

work responsibilities across widely Our report the highlighted Internet. press was the reposted journey, and achievement, easy-to-share posters theme, and new popular long the new proposals new premier, government conference,

of aging X are during population for this many the to areas year's and Topic also are importantly, rate the Sessions, hotly concern discussed of gender with More rest low countries. X equality, education how the birth cope as such Sessions world. to China for with platform communicate and

the implication of In these the into With devolved we our World, broader Dialogue issues. signature series,

Norwegian the interviewed ambassador China, For we example, to .

Norwegian final relations exploring , X triggering the media domestic social hot and platforms. discussions jointly topics, and social During on overseas extensive sessions,

hot proposals personal reform column key income have of during in-depth retirement on age should tax, the working topics raising commentaries sessions, barred proposed wider for original service. our and multi-angled of the and provided Additionally, the and the discussed pension in threshold from the children X in increase civil be and the including criminals

systematic The between published platforms. law. top a topic of the the the the justice professional by commentary nearly became in analysis struck and opinion column, all on our message theme acceptance, balance article the on public quickly The last function offering criminal of search

accounts continued nearly by read value by to as was about millions platforms the that mainstream of complete week, of media leading discussions brand. tens the message a people a XX for of and reposted It content across multiple underscoring

coverage not reputation generated has but event boosted breaking also for news influence, media content. our revenue only through and sponsored Our

Our format, coverage helping by sponsored advertisers the posters target. sessions of in our opinion and interviews, videos, quarter first animations X revenue advertising various all was pieces, the meet us

topics, also characteristics the held influence our in as [indiscernible] academic distinguished we industry ifeng in China hot The verticals. In Asia Finance forum the and economics for area. and by addition and our reinforced expanded to finance attracted news guests

Macau ifeng. We with Weibo, hosted search the influence media views on and hot billion also significant nearly and X topics highlighting appearing XX on of high-profile Changbaishan relevant X forums in

survey and an and mainstream brought automotive vertical, industry authority attendees In Chinese released the ceremony the Auto's global with ifeng solidifying firm, automakers. the expertise automobile We XX jointly in together XXX presented Deloitte, industry. ifeng XXXX further consumer report, consulting covering Global awards Auto

media discussions XX and live topic, this across the exceeded the few losing outlets. views our with for broadcasters The serving vehicles really hashtag event the various promotion million market, heated

our build sports and [indiscernible] product [indiscernible] people to spirit while Heroes monetization. children lives welfare the We in book in mini documentaries, our champions support Olympic initiatives, public join and such the captures and diversify to area. offerings of and bringing continue premium to content close ordinary pipeline as invited rural in live broadcasting supplies to video

financial culture Hometown variety high [indiscernible] topics advertisers, provided catering customer explores in needs. our culture centered to diversified of to around content marketing [indiscernible] solutions a This and format. [indiscernible] rural live brand communication and revitalization broadcasting produced products while cover

according and and preferences customized capture our subscription push a patterns For to interests we subscriptions. ifeng notification to app, of feature added the user better

This DAU resulted quarter-over-quarter of coming app's the notifications. in in XX% from push opening rate increase with a XX%

video resulting recommendation, in increase in time resulted per played recommendation and optimization reaching increase in a new optimized sale the X% time a per quarter-over-quarter, of user in spent content a played For a average increase immersive click-through years. logic, increase videos, average recent XX% video XX% and This rates in quarter-over-quarter. in we combined immersive a person in high

to on revenue diversification. Moving

our partner industry newly line reading business other to books. with Our online continued signed to players lease

opening X the played works million XX top just surpassed days audio book book, the along with the of in in list, self-made other XXX the new [indiscernible]. Our made to

our through events business, we the of clients. cities, our product internal revenue payments, target and for estate and actively collection demonstrating In promoted QX the promotion to property while our We and rebound. the real in a brands our market met value seen industry major the

report In of confidence. the we in the the focusing quality good improvement news, China with consumer with real on contributing housing terms content, cooperation the action of differences properties quality, and delivery to launched on of completion

in on in Furthermore, we January category our holiday demand of March, GMV February, and In to highlighting e-commerce target seasonal QX. exceeded gifts the finding focused . business and shifted the and

the For are user the on that of of monetize profile broadcasting tailored our third-party to major users to the we our live e-commerce, brands further accounts have platforms base. with value overseas collaborated and

influence In the to we quarter. summary, the media of first content our our strengthening during offering, user continue enrich our and experience enhance app

more efficiency. This and will monetization Mr. our we operational objectives to adaptable robust, financial organization. our CEO, achieve will into efficient remarks. drive a continue This Sun's forward, develop prepared and Going to us help concludes and

for now financial will be XXXX. mentioned in RMB. through I quarter of figures will first All walk you performance our the

million Our to in total XXX.X XXX.X the last same CNY as of revenues million were CNY year. period compared

compared to net in last of advertising same industries due To in decrease XXX.X advertisers to the in year. CNY of reduction the XXX.X last advertising and revenues period spending CNY mainly certain million mainly million were was elaborate, sales. The The were the million increase to same intensified to revenues million year. Paid revenues XX was increase industry-wide XX.X competition. in CNY the copyright IP due certain services period in CNY from of the compared the

narrowing XX.X result strict to loss control was XX.X% of was cost measures Net CNY operations million million, attributable narrowing a by CNY XX.X% by from Loss year-over-year ifeng as implemented. XX.X year-over-year.

Moving on our to sheet. balance

cash approximately the As cash term short-term and company's investments XX, restricted XXX.X USD cash and or XXXX, March equivalents, billion of deposits, RMB X.XX million. or

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

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

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

which million. service CNY are paid This For we the and view, the are substantial and CNY uncertainties. and to between forecast XX.X the change million forecasting XX.X reflects subject our current revenues, preliminary

call. our of portion prepared the concludes This

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

Operator

Instructions]. [Operator

the first from of Our Xueru Zhang from question line comes XXResearch.

Xueru Zhang

I insight provide appreciate hearing a the the into decline coming contributing revenues? in Could in outlook factors QX Additionally, to would kindly business for ad you the quarters. your net

Edward Lu

Thank the bit you year-over-year and expectations. their of declined with to market also According overall the Actually, recovery market advertising little reports, a in your research question. was overall February, market cautious spending. advertising below QX XXXX, are for January and the advertisers

list. beverage cosmetics to product comes industries, the advertising also in and may beverage ranking come driving the the industries especially force top of back The industry, including FMCG it bathroom food, alcoholic When and market. remains the

some and advertising the Also, These or contracts. campaigns brand of the milestone are signing more decline with we major their quarter, by the industries we more new on in energy focused progress and especially completing on expanding branding. first growing are brands achieved we X they more in traditional overseas those placing on emphasis weight placing are are who market as by general AI domestic carmakers, vehicles, the

growth pressures recent advertising many. in years priority declining sales been Brand have and the been for a short-term as has

long-term to through returns in laying are is value. using back the focused high-quality and a branding media However, actually normal, brand on content what future. the high-quality we increased. importance Customers building more foundation building at brand values convene to as the for [indiscernible] are of channels the creativity market has and

the other centered numerous Golden and laying IP our to Chinese around our finance, for In quarter, service Diplomacy also attracted season revitalization, customized X themes rural the such as fields. we our and Currently, brand the story public enterprises of marketing content in sponsorship are telling of first Sessions, create product for clients. the projects innovative we coverage and welfare

more serve integrating to in organizing marketing to clients are We goals. my their leveraging helping our achieve also That's and Xueru. your them questions, events large-scale resources answer capabilities

Operator

from Shanghai. Our comes Alice the from of question First next line Tang

Alice Tang

this can company's control? down further? Are Was cost improved plans other see income due to has any cut the operating to costs we So year-over-year. that mainly there

Edward Lu

the in is have G&A this selling, costs, significant of and expenses quarter this good we in question. very seen operating to a first done optimization expenses, including improve decreasing R&D reduction. operational already efficiency, cost a by have XX.X%. debt year, lot the This was In with Actually, reflected of year order past which

But this to be cuts. much honest, room significant at is not for stage, cost further there

to investment focus structure on adjustments cost on and We expenses our will our of fine-tuning as return continue and needed. the make

goal profitability in for achieving strive crucial main more to breaking is the long you, for is returning this Alice. and Our also year Thank revenue even to which run.

Operator

am I turn like no team now the to would remarks. I management further conference to showing for questions. closing the back

Muzi Guo

Thank you.

Q&A good questions. end and We have Thank a free conference call. contact further you call. our you of any today have now for Have on again come to Please joining feel to us us the if our day. the session

Operator

does conference for today. Thank you for Thank participating. conclude you. our That

disconnect. now may You

Phoenix New Media Limited (FENG) 15 May 232023 Q1 Earnings call transcript