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Phoenix New Media Restricted (NYSE:FENG) Q3 2023 Earnings Convention Name November 14, 2023 8:30 PM ET
Firm Individuals
Muzi Guo – Investor Relations Supervisor
Yusheng Solar – Chief Government Officer
Edward Lu – Chief Monetary Officer
Convention Name Individuals
Alice Tang – First Shanghai Securities
Operator
Good day and thanks for standing by. Welcome to Phoenix New Media Third Quarter 2023 Earnings Name. Right now, all contributors are in a listen-only mode. After the audio system’ presentation, there might be a question-and-answer session. [Operator Instructions] Please be suggested that as we speak’s convention is being recorded.
I might now like at hand the convention over to Muzi Guo from Investor Relations Division. Please go forward.
Muzi Guo
Thanks, operator. Welcome to Phoenix New Media’s earnings convention name for the third quarter of 2023. Becoming a member of me right here as we speak are our CEO, Mr. Yusheng Solar; and our CFO, Mr. Edward Lu.
Throughout this name, our administration workforce will start by offering an summary of our quarterly outcomes, adopted by a Q&A session. You’ll find the monetary outcomes for the third quarter of 2023 in addition to the webcast of this convention name on our web site at ir.ifeng.com. A replay of this name can even be made obtainable on the web site inside the subsequent few hours.
Earlier than we proceed, I want to draw your consideration to our protected harbor assertion, which might be present in our earnings press launch. This assertion is vital because it pertains to our forward-looking statements through the name. Moreover, please be aware that until in any other case specified, all figures talked about all through this convention name are in RMB.
Now I’ll cross the decision over to Mr. Solar, our CEO, for his opening remarks. I’ll present the interpretation.
Yusheng Solar
[Foreign Language]
Hi there, everybody. Within the second half of the yr, we discover ourselves navigating a macro setting stuffed with uncertainties. This difficult backdrop has created headwinds in our promoting enterprise. Nonetheless, in these making an attempt occasions, it is crucial that we stay devoted to our core values and competencies, and on the similar time, we should proactively adapt our decision-making course of and innovation methods to rapidly reply to the ever-evolving market.
We have to make clear our core competency, which is information. We’ll proceed to leverage our benefit in information protection and create an irreplaceable content material high quality that units us aside from others, thus higher supporting our content material advertising and marketing efforts.
Subsequent, Edward will present a extra detailed rundown of our operation within the third quarter. Edward, please go forward.
Edward Lu
Thanks, Muzi. Throughout the third quarter, we have been dedicated in upholding the standard of our content material as a mainstream media outlet. Within the present turbulent world panorama and the macro setting, trustworthiness has emerged as an important requirement for our customers.
Because the outbreak of the Israel-Palestine battle, we have now compiled over 100 information flash and articles, establishing ourselves because the go-to supply for monitoring the event of the disaster. Our content material has been broadly shared by customers, leading to a considerable enhance in visitors. That is pushed by scorching matters, accounted for 30% of the whole new visits. In our reside broadcast, we offered on-site reporting underneath the title Stay from the Israel-Palestine Battle Zone at Gaza Border.
Our Phoenix journalist, [indiscernible] ventured to Sderot, town closest to the Israel-Palestine battle zone on the Gaza border, situated lower than one kilometer away. The report centered on the native individuals, town’s state of affairs and the bottom actuality, providing worthwhile insights for the viewers to understand the actual state of affairs on the bottom.
On the sports activities entrance. We intently adopted the Asian Video games, attaining excessive publicity and a spotlight on varied social platforms. Our sports activities and video channels launched practically 100 brief movies, accumulating a complete view rely of 37 million. For information and data, generally, our Phoenix Information accounts on Douyin has gained 3.31 million new followers within the third quarter, surpassing a complete of 10 million followers. We proceed to maximise the dissemination of our content material and unlock our enterprise potential on social media platforms.
Within the post-pandemic period, people are experiencing heightened anxiousness and fatigue. Customers are more and more looking for content material that gives constructive power, notably in a concise and high-quality type. That is the place we are available in, intently attuned to customers’ emotional wants, offering them with constructive emotional sustenance. Accordingly, our authentic content material is targeted on particular person experiences and the articulation of particular person demand. We additionally proceed to display our social duty in motion.
In October, the 2023 Endlessly Happiness Charity Gala, collectively organized by Phoenix and the Kids’s Basis Canada, was efficiently held in Vancouver, Canada. Native abroad Chinese language, political and enterprise leaders, philanthropists, celebrities and media companions collect for the occasion. This marks the fifth time the Endlessly Happiness Charity Gala went overseas. The occasion was attended by the Consul Normal of China in Vancouver, YANG Shu, Kids’s Basis Founder and Chairman, [indiscernible] and different dignitaries. The occasion reached over RMB2.7 million, which might be totally used for its orphan and the deprived youngsters.
On the promoting entrance, we confronted some challenges within the third quarter in a market the place visitors has peaked and the expansion has slowed down. The important thing to future progress lies in our potential to exactly goal and affect particular potential audiences. As a mainstream media outlet, we have now earned recognition from advertisers for our credibility and affect.
On one hand, we excel at creating high-quality content material that resonate with our model’s worth and identification. However, we’re adept at crafting immersive model experiences by offline occasions, providing interactive platforms for model client connections.
Nonetheless, we additionally want to have interaction in self-reflection and foster innovation from inside. We urgently must make clear our progress technique. It entails understanding which industries we are going to goal, figuring out key new clients and understanding their distinctive advertising and marketing wants. As soon as we have now established our objectives, it is essential to make sure that our firm’s assets align with these targets.
As we plan for the upcoming yr, we’re intently analyzing and making ready for organizational restructuring. With a purpose to speed up the innovation and the upgrading of our content material advertising and marketing merchandise to adapt extra swiftly to market adjustments.
By leveraging our in depth media affect and the worldwide attain, we’re exploring new alternatives in areas equivalent to the worldwide market, tradition tourism advertising and marketing and social media platforms. We’ll make changes based mostly on complete data-driven and rational plans to put a strong basis for future operations.
In abstract, confronting the present market setting and the formidable challenges it presents, we’re conscious about the urgency to vary. Along with enhancing content material and product high quality, enhancing media affect and model worth, we’re additionally adjusting the corporate’s organizational construction and the motivation mechanisms to speed up innovation and the improve of content material advertising and marketing merchandise. Our objective is to reply extra promptly to market calls for, attain our monetary targets on the earliest alternative.
I’ll now stroll you thru our monetary efficiency for the third quarter of 2023. Our figures talked about might be in RMB. Our whole revenues have been RMB153.6 million as in comparison with RMB194.8 million in the identical interval of final yr.
To elaborate, web promoting revenues have been RMB134.3 million in comparison with RMB172.4 million in the identical interval of final yr. The lower was primarily as a result of discount in promoting spending of advertisers in sure industries and intensified industry-wide competitors.
Paid providers revenues have been RMB19.3 million in comparison with RMB22.4 million in the identical interval of final yr. The lower was primarily as a result of decline in e-commerce revenues. Loss from operations was RMB38.5 million in comparison with loss from operations of RMB36.5 million in the identical interval of final yr.
Web loss attributable to ifeng was RMB21.5 million in comparison with web earnings attributable to ifeng of RMB24.3 million in the identical interval of final yr.
Transferring on to our stability sheet. As of September 30, 2023, the corporate’s money and money equivalents, time period deposits, short-term investments and the restricted money have been RMB1.03 billion or roughly US$141.8 million.
Lastly, I might like to offer our enterprise outlook for the fourth quarter of 2023. We’re forecasting whole revenues to be between RMB179.8 million and RMB199.8 million. For web promoting revenues, we’re forecasting between RMB169 million and RMB184 million.
For paid service revenues, we’re forecasting between RMB10.8 million and RMB15.8 million. This forecast displays our present and the preliminary view, that are topic to vary and substantial uncertainties.
This concludes the ready portion of our name. We’re now prepared for questions. Operator, please go forward.
Query-and-Reply Session
Operator
Thanks. [Operator Instructions] Query comes from the road of Alice Tang from First Shanghai. Please ask your query, Alice.
Alice Tang
Good morning, administration. Thanks for taking my query. My query is that our firm had beforehand introduced a inventory buyback plan. May you please present us with some perception and updates on the buyback transaction? Thanks.
Edward Lu
Thanks for the query. Really, we have now confidence within the firm’s fundamentals and future efficiency, which is why the Board of Administrators authorised the buyback plan. At present, the corporate has a really robust money place, offering sufficient assist for the corporate’s future progress for our appreciable sturdy interval.
By means of this buyback we intention to return some money to our shareholders from now till the top of February subsequent yr. We’ll execute the plan in compliance with the U.S. securities regulation and different related laws. And the buyback transactions might be performed within the open market at market costs. We count on to start out the buyback transaction shortly after the Q3 earnings launch. Thanks, Alice.
Alice Tang
Thanks. That is very useful.
Operator
Thanks. And that is all we have now for question-and-answer session. I’d now like to show the convention again to Muzi Guo for any further closing feedback.
Muzi Guo
Thanks. We’ve now come to the top of our Q&A session and our convention name. Please be happy to contact us if in case you have any additional questions. Thanks for becoming a member of us as we speak on this name. Have a very good day.
Operator
Thanks. This concludes as we speak’s convention name. Thanks for taking part. You could now disconnect.
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