Earnings call transcript Q2 2023

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Operator

Good day, and thank you for standing by. Welcome to the Phoenix New Media Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Relations conference Department. like Guo to now Investor from would hand over the Muzi I

Muzi Guo

XXXX. Thank Media's for of earnings operator. conference you, Welcome call the to second Phoenix New quarter

Mr. Joining Yusheng Edward me are here our Lu. Sun; our CFO, today and Mr. CEO,

call, will begin our of an by Q&A a team followed results, quarterly by management session. this providing overview During our

replay this the You of the at well as as quarter of can XXXX website also will find the call hours. website our webcast this financial conference of be results ir.ifeng.com. on on for A next the second available call the made few within

as Before harbor pertains statements forward-looking to this statement, we draw to our call. like be during safe can important our in found to This it proceed, which release. would earnings our your I press attention is statement

please in Additionally, call conference all that specified, otherwise note throughout figures this mentioned unless RMB. are

translation. his CEO, I Now, will Mr. Sun, I our the call to will opening remarks. pass for the provide

Yusheng Sun

[Foreign Language]

[Interpreted] everyone. Hello,

past widely quarter, profits. Thanks During Shangri-La resulted and Internet. and been team awareness, War team news the events, towards our effectively the content Russian-Ukraine in reach Phoenix our working This like has the impactful and major content to shared news maximizing New across Dialogue. Media covered timely relentlessly

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seamlessly of synergy of marketing become reporting has sales resources, amplifying stronger. and collaboration. TV Phoenix integrate Phoenix integrated collaboration The Media New the and also We've events to major the effect managed between

social from strengthen in major will we secure and politics, in speed our and to news continue our content we and will in focusing affairs breaking competitive legal to differentiation in of technology, and matters, breadth. while ahead, advantage trends, finance also continue on to dissemination. position aiming excelling refine events, current Apart Looking coverage and deepen our

will social unlock Even maximize platforms, into delve business we of content and we prospects. channels. more utilizing importantly, social further By and media intend our to additional the various embrace dissemination media

more Next, will our please quarter. of a ahead. provide the detailed operation rundown Edward Edward, in go second

Edward Lu

to Chinese speech. During second to to China-U.S. first our XXXX, ourselves influence the on-site dinner, first Defense our question and several being and China's the the U.S. dedicating events. frontline of in engaged the the delivered present Notably, our publish the major at quarter Shangri-La Defense we Defense the the commitment maintained Secretary Secretary's dialogue table ground-breaking by the at in We and news about on-site, strengthen reports. Singapore, reporter to Secretaries to exclusives break sole were media Dialogue response to media U.S.

Our related such a and Weixin, achieved acclaim like of Weibo million outlets [indiscernible], and Shimbun remarkable media viral video platforms from and others. XX other content esteemed total on Asahi views, Douyin, Bloomberg, earning as going

the of rebellion, of the broadcasts, Russia-Ukraine live coverage understand the conflict. unfolding. exclusive In the its we late a This of organized became series providing to moment event during live Wagner a comprehensive coverage the defining help in June, audience broadcast

on XXX,XXX all platforms [indiscernible] On new across a top first the we day viewers nearly (ph) of the broadcast, [XX of followers. the reached list, live X million] trending and with surge

video audience real-time for clips We coverage. broader short through also updates provided

platforms. Phoenix as on insightful social the Reference such and media columns, analysis garnering original Our of sharing extensive offered event, comments [indiscernible]

journalistic resulting winner, Poland's commentator times the series, Dialogue the President, Phoenix's World, by United China received domestic Friedman, we with its with a American between on abroad, step. influencers challenging figures. Phoenix continued widespread global sharing and professional interview conversations various signature with conversations the highly in World the three-time political during the towards Dialogue an that stage. content States, Media media marking and praised interview featured himself the to prominent pursuit, famous high-quality Pulitzer perfectly for Phoenix's step author for exclusive an with rational hold platforms, and our In New and align we with In important May,

disseminating promoting the culture the in commercially and development we culture our world-class a and Conference With in and QX, Cities role In to to supported create [rooted] Macau, on tenets July, and In in and continued of resources global expanded we dispensable Branding world-class Chinese base. forum destination brands. brands we the tourism enrich a early unique culture focused our tourism in (ph) our future. and TV content perspective, aiming shaping client industries play supporting World held the international XXXX

network them our provided international markets, leveraging our of to those including overseas worldwide, content our highlights, KOLs and in we industries, clients marketing improvements and marketing global along expanded to and the consumer Additionally, with beverages, services home especially and and we execution. food with resources venturing goods appliances, compelling journalists into contracted

this the For for instance, the of integrating attract through Middle more content global observation topics and hot production local U.K., our capabilities, Africa, Japan, to stories. tailored clients, we continue the our in and This news. [indiscernible], clients France brand a Global Phoenix production our branding showcased East, with content team, other and and regions

content. also into We incorporate our AIGC

revolutionize AI five views. AI XXX,XXX Vanguard, popular AI utilize creation, video topic video show The launched and and generation, image audio traditional selection, total an success produced original episodes Our to of for tools program employs achieving that and production, a script vertical with generation. technology

industry. analysis, the predictions. news Vanguard first programs trend of one for audiences the while of unique our briefs, covers and the diverse is it AI has AI to overall productivity. Focusing to catering fully leverage content increasing We needs to generation expert in cutting-edge content, on content, to index generate from that AI highly-personalized the AI observations industry believe everything potential

increase content. the features, articles, optimized responded in making and to positively logged-in easier section app, it users a shareable essence grasp and evidenced average enhancement, comment news rate from the X% interactive XX% this generation flagship we in increase click-through to AI-generated interaction. in AI-powered in Apart of thus On iPhone of in enhancements, content app, our proportion enabling cards common the from of further flash the of social quickly with users progress facilitating made a for news our Users the direct X% quarter-over-quarter, content. summaries feature news drive flash and of we card AI-powered daily sharing dissemination the

separate recommendation rates and in in for Furthermore, a for Phoenix click-through content, TV's XX% resulting we content. TV increase channel a increase introduced and high-quality a two-fold in video algorithm exposure

topics more creating hot to Additionally, content. for opportunities we image, improved and the distribution algorithm exposure hot focused for

per in on With increased quarter-over-quarter. content optimizations our algorithms the increased and average overall recommendation by the these and editing, time X% joint spent click-through the app by user rate XX%,

flagship In original quarter, exclusive second our content delivering during through all and reports to and conclusion, social continued bolster we our the events platforms. and major across influence media covering app by

expanding base. our also We monetization strengthened resources capabilities our by marketing client our and upgrading

As growing commercial be we as thereby a on resources business our both forward, media value aligning value. in characterized brand units, strategic to solidifying by leading and the industry, media, will focus move force our position

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

revenues. in of to RMBXXX.X Paid in RMBXXX.X RMBXXX.X million the compared revenues To were were compared to e-commerce the year. period Our total million to of RMBXXX.X to same the of the same million was and RMBXX.X increased due The services in content period last customers million year. to same last RMBXX.X last certain elaborate, revenues compared decrease revenues in period decline reduction million advertising million of the mainly year. the net in spending

from RMBXX.X Loss million, narrowing expenses. operations operating of a decreased profit by XX.X% result gross year-over-year and increased was as

XX.X% million, Net narrowing loss was attributable ifeng to RMBXX.X by year-over-year.

balance sheet. our to on Moving

company's short-term XX, investments the XXXX, equivalents, restricted cash of US$XXX and cash were deposits, approximately RMBX.XX June million. billion and As cash or term

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

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

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

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

call. the This of concludes portion prepared our

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

Operator

Instructions] [Operator our Xueru -- And XXResearch. apologize, first Xueru question from Zhang with you. Thank is I

Xueru Zhang

you ad you. Thank share review perspectives half for outlook brief and morning, your for taking question. half? my a management the year offer Thank the during the anticipated of the first kindly second Good on the of business the management. ad Can in market

Edward Lu

Chinese Thank the Xueru. you facing cautious our their quarter, Actually, for my morning, the economic slow showed looked trend. marketing the In opinion, market moderate in better Good still a to things advertisers advertising the with first second being are due budgets. and Overall, it's challenges, question. revenue quarter. But decreased in the recovery recovery. ad

identified areas said Having growth. we have possible that, of

promotions. new pushing are brands pandemic, the after product and instance, development For

new break products local for increasing We lot sectors. and automobile, such Also, responded market. to demand, in have improvement bigger growth that the through beverage, barriers marketing alcoholic industries, a services brands electronics of actively many want piece get to of and home launched a growth as

on We have and been to year our using audiences. global advertisers which a reach choose over to for provide content's this brand appeal working global

share in also industries. client are certain We expanding our

tier World of place Conference luxury such fragmented tourism attract content new tons today's and attention, different market, emphasis media. have core local and us example, user as great For to events clients helped are our Cities like hotel they marketing, advertisers with top on et bureaus, Branding chains, the the back of and In cetera. tourism-related channels cultural content

plan resources we the the So, time, our our and the about same is enhancing all content our media are and capabilities. strength game area. uniqueness boosting At in marketing

our second ad you. stable quite year. think of revenue the in I the will Thank be half

Operator

comes next It our question, from First for Alice moment One Shanghai. the of with please. line Tang

Alice Tang

Good for question. taking my morning. you Thank

a company services in in the revenue QX. experienced paid So, noticeable decline

diversified So, please, future operation Thank for in and light could plans focus the on the the the future? management you. of shed the the team, business

Edward Lu

Alice. Hello,

revenue To of resources this, steady primary strategically a ensuring maintaining to into revenue direct limited our our is the diversification, most diving our need parts stream. business. critical profitability Before we focus towards on and actually, achieve

So of our profit centers media core and business. is operations key part the our our

of reason down paid revenue, weren't such making some but much services revenue the as revenue as diversification, QX our they the business for profit we'd private e-commerce why generated Regarding label our in as sales. because is hoped, our went main brand parts our

this of putting part are this approach not profit ventures we year. of It's with kind our continuing So, first. to

advertising setting the For our core we business, for higher bar revenue. are

market-focused. is strategy Our

marketing clients goals. setting our and clear their pinpointing We needs are and

our returns. directing are projects that toward limited We better promise resources

plans both we impress are costs increasing departments impact. we an fostering productivity check. to that In addition, all of that, top on contents keeping make teamwork And and in craft across are and powerful advertisers and about

the operations. Thank These are backbone of company's you, Alice. factors our healthy

Alice Tang

you. Thank

Operator

turn comments. and final Guo with you. the that, for call back we our Thank And Q&A, I finish to Muzi will

Muzi Guo

you. Thank

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

Operator

And with for all that, thank participating. you

now may disconnect. You

Phoenix New Media Limited (FENG) 15 Aug 232023 Q2 Earnings call transcript