Q3 2022 Sohu.com Ltd Earnings Call
The conference will begin shortly to raise your hand during Q&A you can dial star one one.
[music].
Yes.
Okay.
Ladies and gentlemen, thank you for standing by and good evening. Thank you for Chinese So who's third quarter 2022 earnings conference call. At this time, all participants are in a listen only mode.
After managements prepared remarks, there will be a question and answer session. Today's conference call is being recorded if you have any objections you may disconnect at this time I will now.
To turn the conference over to your host for today's conference call <unk> Investor Relations Director of Sohu. Please go ahead.
Thanks, operator, thank you for joining us to discuss <unk> for the quarter, probably turn into results.
Call, our chairman and Chief Executive Officer, Dr. Charles Zhang CFO generally invest credit no fitness gyms don't also they've got a childhood <unk> Chen and CFO Youre being long before management begins their prepared remarks, I would like to remind you of the company's safe Harbor statement in connection with today's conference call.
Except for the historical information contained herein.
The matters discussed on this call may contain forward looking statements. These statements are based on current plans estimates and projections and therefore, you should not place undue reliance on them.
Forward looking statements involve inherent risks and uncertainties.
Most of you that are new.
Member of important factors could cause actual results to differ materially from those containing unethical working statements.
For more information about potential risks and uncertainties. Please refer to the company's filings with the Securities and Exchange Commission.
Including the most recent annual report on form 20-F.
Oh, no no call over to Dr. Charles Zhang Charles Please proceed.
Thank you everyone for joining our call.
The third quarter of 2020.
Yes.
<unk>.
Got it.
The macroeconomic environment.
<unk>, we maintained our focus on refining our product improving operating efficiency and enhancing monetization capability.
Thanks to strict budget control and solid performance of our online game business, our bottom line performance over the quarter well above expectations.
For Sohu media portal, we enhanced the user experience through continuous improvements in products and technology for.
For Sohu video, we continued to execute our twin engine strategy developing science and knowledge base.
Broadcasting with our advanced live broadcasting technology, and compelling content and events.
Leveraging the differentiated.
Our differentiated advantages of the physical product matrix, we continue to explore ways to improve monetization for both Sohu media portal and video.
Then games performed well during the quarter with revenues exceeding our prior guidance.
I will go into details about.
This business is in a moment, but first a quick one.
Review of our financial performance.
So the third quarter of 2020.
Total revenue of $185 million down 14% year over year and <unk>.
5% quarter over quarter brand advertising revenue.
We're at $26 million down, 24% year over year, and 3% up 3% quarter over quarter.
<unk> revenues were 49 $149 million down 11%.
Year over year, and 5% in the quarter over quarter.
GAAP net loss attributable to Sohu Dot Com limited.
$2 million.
Compared with a net income of $10 million in the third quarter of 2021, and net income of $9 million and.
In the second quarter of 2022.
non-GAAP net loss attributable to Sohu Dot Com limited.
$17 million compared.
Compared with a net income of $70 million.
In the third quarter of 121, and net income of $10 million.
In the second quarter of <unk>.
Now I'll go through some of our key businesses.
First media portal.
Mobile video.
So media portal.
We consistently.
<unk> product refinement and uptime optimizing of our algorithms.
We're continuously enhancing user experience and have kept users tightly engaged by facilitating large amounts of reliable.
Real time news and premium content.
We're also working actively to integrate new features in our products.
Okay.
Working within this strategy you were able to further consolidate and strengthen our position as a mainstream.
Media platform.
First over video we continue to execute our twin engine strategy, leveraging our advanced live broadcasting technology and premium content.
We actively promoting lead generation and social distribution of our high quality content.
We strengthened our reputation as a credible leading science and knowledge based live broadcasting platform.
During the quarter with the launch of a series of unique and international science related in nature related Broadcasting for example, myself Charles drones, Charles Physics class et cetera, we have.
Not only draw wide attention for millions of our audiences, but also attracted.
We have leading professional broadcasters in a variety of scientific field internal platform.
Our long form.
Comment.
In long form content, besides producing original dramas and reality shows.
Also acquired coffee practice TD program Covenant.
<unk> environment.
Yes.
Yeah.
Despite the.
Ongoing net negative impact of COVID-19, and the uncertainties.
Imposed on the market.
We continue to explore new monetization opportunities to capture advertising budgets.
We extended application scenarios of advanced live broadcasting from Harvey.
And the integrated into various high quality content marketing activities.
During the quarter, we successfully hosted.
And of the Steri skies.
Not counting at 47 degrees north.
The 14th Sohu News marathon.
This unique content marketing activities continued to make breakthroughs and spreading widely across social media platforms.
Demonstrating the value.
Through these such events, we were able to meet the demands of white brand advertisers and the tracking their advertising budgets.
Yes.
Next turning to online game business during the third quarter of 2022 on a gigabit revenues performed well.
<unk> declined four PC game, we roll out a new group TVE player versus environment standard for a regular <unk>, which was well received by players.
With <unk> <unk> vintage.
We introduced new weekly goes to keep the game fresh for players.
With mobile games, we introduced some summer themed events for legacy <unk> mobile and adjusted the relative skill.
The plan.
Next quarter.
To keep players engaged we will roll out new content <unk> BTC legend legacy <unk> mobile and other games.
Against the backdrop of.
Ever changing environment, with we will stick to our top games strategy by promoting the development of professional talent as well as innovation in content and technology rolling out more high quality mobile games.
In terms of game pipeline, while maintaining our core competitiveness.
Rpgs Rpgs.
So invest in games of multiple types, including car RPG sports and Idaho game.
Now I will turn the call to Joanna our CFO , who will walk you through our financial results.
Thank you Charles.
Now I'll walk you through the key financials of our video segment.
Third quarter of 2022.
All the numbers on a non-GAAP basis.
You may find a reconciliation of non-GAAP to GAAP measures.
Our IR website.
For Sohu media portal quarterly revenues were $50 million.
11% year over year, and 6% quarter over quarter.
Quarterly operating loss of $38 million.
Compared with an operating loss of $37 million in the same quarter last year.
For Sohu video.
Quarterly revenues were $16 million down.
Down, 29%, a year over year and up 4% quarter over quarter.
The quarterly operating loss was $31 million.
Compared with an operating loss of $10 million in the same quarter last year.
So Charles online game business in the west of <unk> III.
Quarterly revenue of $150 million.
11% year over year, and 6% quarter over quarter.
The quarterly operating profit was $58 million.
Compared with operating profit of $79 million.
In the same quarter last year.
For the fourth quarter of 2022.
We expect.
Brand advertising revenue to be between $25 million and.
$28 million.
This implies annual decrease of 17% to 26%.
On a sequential decrease of 3%.
The sequential increase of 9%.
Unlike in revenues to be between $180 million.
$128 million.
This implies annual decrease of 11% to 18%.
And the sequential decrease of 14% to 21%.
non-GAAP net loss attributable to Sohu dot com limited to be between $10 million and $20 million.
And the GAAP net loss attributable to Sohu dot Com and limited.
To be between $30 million and $23 million.
This forecast reflects our current and preliminary view.
Which is subject to substantial uncertainties.
This concludes our prepared remarks.
Operator, we would now like to open the call to questions.
Thank you very much.
At this time, if you'd like to ask question. Please press star one one on your telephone and wait for a name to be announced.
One moment for the first question.
First question is from the line Thomas Chong of Jefferies. Please proceed.
Hi, good evening.
My question.
Given that we have seen the macro headwinds and also the outbreak of pandemic.
To get some color from Charles.
Okay.
How we should think about the advertising trend.
Of course at this point in categories like auto FMC G.
Poverty, because thats true and also how we should think about the advertising outlook in <unk>.
<unk> <unk> <unk> and then my second question is about <unk>.
Given that.
We have been seen.
All released in October and so far in mobile, but how should we think about dealing with the global trend in China, and how should we think about our new games in the pipeline for next year. Thank you.
Okay.
<unk>.
So the general advertising market is kind of lumpy.
The trend is.
At least for Q3.
Or is this kind of stuff.
One word about among them I think auto is doing fine.
It's been relatively better.
Real estate is really bad.
The.
Internet services I think Q3 is not as good as ours alone.
A low season because of the Q3 Q1 Q2 you have to.
The festivals.
100 <unk> right.
So Q.
The low season and FMC.
Doing better.
Yes.
Relatively.
Rank ranking.
Sectors.
Your next question is about game right.
Okay, Joseph Emmanuel group.
Okay.
In some accounting issue high yield deterioration.
Finance Fisher.
China, which enhances quickly.
Well my ALG shambles that maybe youll see about half that's when we cannot.
Yes.
I think.
Yes.
We have a couple of <unk>.
<unk> that are waiting for the license approval, but we have no further.
With that so they are just waiting.
Hi, I'm <unk> <unk>.
<unk>.
What kind of coordination is kind of a high yield and retention Joseph.
Currently in our game pipeline, we have more than 10 games and half of them are.
It for global markets.
The rest of them are for the domestic market.
Yes.
Okay.
Thank you.
Amid this advertising downward trend.
We actually.
Did a little bit better bye.
As I just said.
Our unique marketing activity and our marketing.
Marketing activities unique event, you went through the marketing activities that.
We were able to draw some advertisers.
Okay.
Got it thank you.
Okay.
Given the questions. Our next question.
It comes from July of Eddie Leung of Bank of <unk>. Please proceed.
Hey, Kevin.
Can I have a follow up on the near term advertising trend could you describe what you'll have seen in September October and early November .
The reason we ask is are we.
We all know there has been more lockdowns.
The reason our 12 months. So just wondering how you have seen how you see the trend evolving into pause on a couple of months. So Thats. My first question and then secondly.
Use of cash.
Continue to see fairly strong cash balance so wondering if we should expect any more.
Share buyback program or even the dividend. Thank you.
Yes, I think the law.
Lockdown did.
It did.
Have a negative impact over.
Our advertising.
Income because companies.
We rely mostly on brand advertising, so a company, especially in large corporations.
They were previously.
Previously.
Scheduled events marketing events and those kind of things.
Now able to be held so.
That's why.
That's the impact there.
They are spending on our platform.
But we are doing not too bad actually.
Because we have some kind of online events like I just mentioned that they are.
Yes.
Physics class or other signs of science and nature based.
Knowledge space.
Streaming broadcasting events that does not need people to meet.
Meet in person so.
So thats.
We just get back a little bit some of them they are out of line.
And that use of cash.
Our use of cash.
Yes.
Because of the.
Economic uncertainties microeconomic macroeconomic uncertainties.
We hold backhaul after we've completed.
As we reported we completed.
100 million buyback already right. So a further buyback would hold back because.
Great to see.
Yeah.
The economic uncertainties.
Sure.
Got.
Got that.
Thank you very much and also where we have a lot of things to do we have a lot of things.
Improving our products developing our user base.
So.
From a long term future we do have.
Place to spend our money.
Okay.
Okay.
Thank you very much.
Questions.
As a reminder to ask question. Please press star one.
Next we have the question from Alicia Yap from Citi. Please proceed.
Hi, Thank you.
Good evening management, Thanks for taking my question.
I do have a couple of questions firstly on the fourth quarter.
<unk> revenue guidance.
It seems quite a bit sequentially.
Hey.
Can management elaborate a little bit the reasons of the soft gaming guidelines I thought if I heard it correctly Charles that Judy mentioned, there will be some.
S pension Pat update for the <unk> and all that so just wondering.
Cough, the discrepancy on the game's content update versus the guidance.
Secondly, also related to the gaming just in general if management can share your view.
<unk> gaming industry monetization being affected by the latest macro weakness so.
Have you seen or do you think the Covid lockdown order soft macro.
Yes.
What if any impact that the gaming revenue agenda gamers time spent on gaming.
Hello, Daniel.
To answer your last question yes.
Yes.
Conflicting.
Factors one is that people will have more time spending stay home and more time for plaguing.
The macroeconomic situation people have less money. So people are not willing to spend as much as before.
So that's why it's the.
Again the monetization.
Sure.
The overall effect is actually negative now.
Got it.
Hello, Amy within Asia for sure.
Jonathan you were challenging element Alicia <unk> quarter was.
So as usual Roger on the China to actually gain from them.
This is <unk>. So yeah Hanmi has answered also youll tenancy there.
You'll see that catch up.
Nick.
Hi.
And I think <unk> seen a liquidity event arena.
Sure.
That was primarily due to the natural decline of our some of our older games of hotel DB franchise as well as the sales decline.
And part of Q2, the negative impact of.
Exchange rate.
I see thank thank you Ken I have one follow up on the.
<unk> advertising.
So if management can comment regarding the guidance that you provide for <unk> X.
Smell.
Your thoughts into 2023 are you more confidence or less confidence about the recovery pace up at sentiment into next year.
Okay.
Well, we are confident because our.
Platform, our user base is growing and also our.
Broadcasting and also our unique.
Marketing events activities very unique other company does not have these kinds of things.
We are confident.
Really depend on the overall economic situation.
And also.
The future.
The <unk> 19.
Policy right. So it all depends.
If the economy is doing well we are very confident that we'll be we'll do well, we'll do better than the overall average.
But it really depends.
Kelly Coffey policy.
Where the lockdown.
Yeah.
Just lastly on the share buyback I think you mentioned given because of the macro weakness. So you wanted to be a little bit cautious on spending the money right, but let's say noncore we cover.
Your gaming business doing well.
Advertising also recover.
Share price steel around the Slabaugh then you would consider a more aggressive buyback is that what you mean.
Okay.
Not exclude that possibility.
Yeah.
Okay Alright, Thank you Charles Thank you management.
Right.
Thank you for the question that concludes today's conference call. Thank you for your participation you may now disconnect.
Yes.
The conference will begin shortly.
As Johan during Q&A, you can dial star one one.
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Ladies and gentlemen, thank you for standing by and good evening. Thank you for joining so who is <unk> third quarter 2022 earnings conference call. At this time all participants are in a listen only mode. After management's prepared remarks, there will be a question and answer session. This conference call is being recorded if you have any objections you may disconnect at this time.
I would now like to turn the conference over to your host for today's conference call <unk> Investor Relations Director of Sohu. Please go ahead.
Thanks, operator, thank you for joining us to discuss <unk> third quarter, let me turn into results.
Call, our chairman and Chief Executive Officer, Dr. Charles Zhang CFO , John Haley and Vice President of Finance Gemstone also based off triangle, <unk>, Chen and CFO Youre been wrong before management begins their prepared remarks, I would like to remind you of the company's safe Harbor statement.
With todays conference call, except for the historical information contained herein.
The matters discussed on this call may contain forward looking statements.
Statements are based on current plans estimates and projections and therefore, you should not place undue reliance on them.
Forward looking statements involve inherent risks and uncertainties.
Causing you that a number of important factors could cause actual results differ materially from those content unemployed key statements.
For more information about potential risks and uncertainties. Please refer to the company's filings with the Securities and Exchange Commission.
<unk> the most recent annual report on form 20-F.
With that I will now turn the call over to Dr. Charles Zhang Charles Please proceed.
Thank you everyone for joining our call.
The third quarter of 2020.
Our ethane from Columbine.
Uncertainty in the macroeconomic environment.
Despite these we maintain our focus on refining our products, improving operating efficiency and enhancing monetization capabilities.
Thanks to strict budget control and the solid performance of our online game business, our bottom line performance over the quarter well above expectations.
For Sohu media portal, we enhanced the user experience through continuous improvements in products and technology.
For Sohu video, we continued to execute our twin engine strategy developing science and knowledge based.
Broadcasting with our advanced live broadcasting technology, and compelling content and the events.
Leveraging the differentiated.
Differentiated advantages of the physical product matrix, we continue to explore ways to improve monetization for both Sohu media portal and video.
And games performed well during the quarter with revenues exceeding our prior buyback.
I will go into details about each of these businesses in a moment, but first a quick overview of our financial performance.
So the third quarter of 2020.
Total revenue of $185 million down, 14% year over year, and 5% quarter over quarter brand advertising revenue.
We're at $26 million down, 24% year over year, and 3% up 3% quarter over quarter online game revenues were 49 $149 million down 11%.
Year over year, and 5% in the quarter over quarter.
GAAP net loss attributable to Sohu Dot Com limited.
<unk> 2 million.
Compared with a net income of comment in the third quarter of 2021, and net income of $9 million in the second quarter of 2022.
non-GAAP net loss attributable to Sohu Dot Com limited was.
$17 million.
Compared with a net income of $70 million.
In the third quarter of 171, and net income of $10 million.
In the second quarter of 'twenty two.
<unk>.
Now I'll go through some of our key businesses.
First the media portal and Sohu video.
Sohu media portal.
We consistently.
<unk> product and refinement and uptime optimizing of our algorithms.
We're continuously enhancing user experience and have kept users tightly engaged by facilitating large amounts of reliable.
Real time news and premium content.
We're also working actively to integrate new features in our products, we enrich users.
Yes.
Working within this strategy, we were able to further consolidate and strengthen our position as a mainstream.
Media platform.
For Sohu video, we continue to execute our twin engine strategy, leveraging our advanced live broadcasting technology and premium content.
We actively promoting the generation and the social distribution of our high quality content.
We strengthened our reputation as a credible leading science and knowledge based live broadcasting platform.
During the quarter with the launch of a series of unique professional appliance related in nature related broadcasting for example, myself Charles drones, Charles Physics class et cetera, we have not only draw wide attention for millions of our audiences, but also attracted.
We have leading professional broadcasters in a variety of scientific field into our platform.
Our long form.
Content.
In long form content, besides producing original dramas and reality shows.
Also acquired coffee packaging television program covenants.
On environment.
Yes.
Despite.
Ongoing net negative impact of COVID-19, and the.
Uncertainties in it.
Imposed on the market.
We continue to explore new monetization opportunities to capture advertising budgets.
We extended application scenarios of advanced live broadcasting.
And integrated into various high.
High quality content marketing activities during.
During the quarter, we successfully hosted top end of the Steri Sky's, even when we have a few months campaign at a 47 degrees north.
And as a 14th Sohu News marathon.
These unique content marketing activities continued to make breakthroughs in spreading widely across social media platforms.
And demonstrating the value also through these such events, we were able to meet the demand of what Rand advertisers and attracted their advertising budgets.
Sure.
Next turning to online game business during the third quarter of 2022 on a gambit revenues performed well.
And our pipeline for PC games, we rollout a new group TVE player versus environment standard for a regular <unk>, which was well received by players.
<unk> <unk> vintage.
We introduced new weekly goals to keep the game fresh for players.
With mobile games, we introduced some summer themed events for legacy <unk> mobile and adjusted the relative scale of <unk>.
Ken.
Next quarter.
To keep players engaged we will roll out new content <unk> legend legacy <unk> mobile and other games.
Yeah.
Against the backdrop of an ever changing environment with we will stick to our top games strategy.
<unk> the development of professional talent as well as innovation in content and technology rolling out more high quality mobile games.
In terms of game pipeline, while maintaining our core competitiveness.
Rpgs Rpgs.
So invest in games up multiple types, including Rpgs and sports and idle games.
Now I'll turn the call to Joanna our CFO , who will walk you through our financial results.
Thank you Charles.
We will now walk you through the key financials of our video segment.
Third quarter of 2022.
All the numbers on a non-GAAP basis.
You may find a reconciliation of non-GAAP to GAAP measures.
IR website.
Social media portal.
Quarterly revenues were $50 million down.
11% year over year, and 6% quarter over quarter.
Quarterly operating loss of $38 million.
Compared with an operating loss of $37 million in the same quarter last year.
So video quarter.
Quarterly revenues were $16 million down.
<unk>, 29%, a year over year and up 4% quarter over quarter.
The quarterly operating loss was $31 million.
Compared with an operating loss of $10 million in the same quarter last year.
So China online game business and the rest of the <unk> III.
Quarterly revenue of $150 million.
11% year over year, and 6% quarter over quarter.
The quarterly operating profit was $58 million.
Compared with operating profit of $79 million.
In the same quarter last year.
For the fourth quarter of 2022.
We expect.
Brand advertising revenues to be between $25 million.
And the $28 million.
This implies annual decrease of 17% to 26%.
The sequential decrease of 3% to a sequential.
The sequential increase of 9%.
Unlike game revenues to be between $180 million.
$128 million.
This implies annual decrease of 11% to 18%.
The sequential decrease of 14% to 21%.
non-GAAP net loss attributable to Sohu dot com limited to be between $10 million and $20 million.
And the GAAP net loss attributable to Sohu Dot com limited to be.
To be between $30 million and $23 million.
This forecast reflects our current and preliminary view.
Which is subject to substantial uncertainty.
This concludes our prepared remarks.
Later, we will now like to open the call to questions.
Thank you Vanessa.
At this time, if you'd like to ask question. Please press star one one on your telephone and wait for a name to be announced.
One moment for the first question.
First question is from the line was Thomas Chong of Jefferies. Please proceed.
Hi, good evening.
My question.
And that we have seen the macro headwinds and also the outbreak of pandemic.
To get some color from Charles.
Okay.
We should think about the advertising trend.
Cost discipline categories like auto FMC AG.
Poverty, because thats true and also how we should think about the advertising outlook.
Trying to get <unk>.
And then my second question is about <unk>.
Given that.
We have been seeing.
All released in October and so far in November how should we think about the teaming with global trend in China and Hong Yao.
Think about our new games in the pipeline for next year. Thank you.
Okay.
So the general advertising market is kind of.
Okay.
The trend is.
At least for Q3.
Or is this kind of stuff.
One word about some of them I think auto is doing fine.
Although it's been relatively better.
Real estate is really bad.
The.
Internet services I think Q3 is not as good as the.
Low season, because of the Q3, Q1, Q2, where you have flu.
The first dose.
Thanks.
Right.
So Q.
So is the low season, and FMC <unk> seems to be doing better.
Yes.
Relatively.
Rank ranking.
Sectors.
Your next question is about game right.
Okay, Joseph Emmanuel robot.
You can go out.
And simultaneously how I answer this.
Sure.
Finance future hotel loans in China, which enhances quickly.
Well, thank you Shannon.
Shannon, let's say, maybe a shipper.
Yes.
I think.
Sure.
We have a couple of projects that are waiting for the license approval, but we have no further about that so they are just waiting.
Time will tell us how useful very analogous to <unk>.
So we don't really.
We have a coordination on the high yield bond and retention Joseph.
Currently in our game pipeline, we have more than 10 games and half of them are fixed.
Fit for global market and the rest of them are for the domestic market.
Yes.
Thank you.
Morning.
Amid this advertising downward trend.
Sure.
Actually.
Did a little better by as I've just said.
Our unique marketing activity on our marketing.
Marketing activities, we make event you went through the marketing activities that.
We were able to draw some advertisers.
Okay.
Got it thank you.
Okay.
Okay.
Questions.
Our next questions.
Comes from July of Eddie Leung of Bank of <unk>. Please proceed.
Hey, Kevin.
Can I have a follow up on the lease term advertising trend could you describe what you'll have seen it.
In September October .
In early November .
The reason we ask is are.
We all know there has been more lockdowns.
In the reason.
So just wondering how you're how you see the trend evolving into pause on a couple of months. So Thats. My first question and then secondly.
On use of cash.
Continue to see fairly strong cash balance so wondering if we should expect any more.
Share buyback program or even the dividend. Thank you.
Okay.
Yes, I think the lockdown.
It did.
Have a negative impact over.
Our advertising.
Income because companies.
We rely mostly on brand advertising, so a company, especially in large corporations.
They were previously.
Previously.
Scheduled events marketing events and those kind of things.
Able to be held so.
That's why.
That's the impact there.
Spending on our platform.
But we are doing not too bad actually.
So we have some kind of online events like I just mentioned that they are.
Yes.
Physics class or other signs of science and nature based.
Knowledge space.
Streaming broadcasting.
That does not need people to meet.
Meet in person so.
So thats.
We just.
Get back a little bit some of.
The <unk> hundred dollars.
And that use of cash.
Our use of cash.
Yes.
Of.
The economic uncertainties macro and microeconomic uncertainties, we we hold backhaul after we've completed.
As we reported we completed a 100.
<unk> million dollars buyback already right. So a further buyback will hold back because.
Great to see.
Yes.
Thank you.
The economic uncertainties.
Okay.
Got it.
Thank you very much and also we have a lot of things to do we have a lot of things.
Improving our products developing our user base.
So.
For our long term future we do have.
Place to spend our money.
Understood.
Thank you very much.
Questions.
So to ask question. Please press star one.
Next we have a question from Alicia Yap from Citi. Please proceed.
Hi, Thank you.
Good evening.
Thanks for taking my question.
I do have couple of questions firstly on the fourth quarter.
Gaming revenue guidance.
It seems quite a bit sequentially.
Can management elaborate a little bit the reasons of the soft gaming guidelines I thought if I heard it correctly Charles that Judy mentioned, there will be some.
S pension pot update for the <unk> and all that so just wondering.
Cough, the discrepancy on the game's content update that guidance.
Secondly, also related to the gaming just in general if management can share your view.
<unk> gaming industry monetization being affected by the latest macro weakness. So have you seen or do you think the COVID-19 lockdown or desktop macro.
<unk> negatively impact that the gaming revenues and the gamers time spent on gaming.
So that will go on yes.
Your last question yes.
Yes.
Conflicting.
Factors one is that people will have more time spending stay home and multimedia plaguing, but.
The macroeconomic situation people have less money. So people are not willing to spend as much as before.
So that's why.
Again the monetization.
Sure.
The overall effect is actually negative now.
Go ahead.
Yes, Hello, Amy within Asia for sure.
Jonathan Youre chunkier elements, so easily at least without damage.
Finishing up on the China plant to virtually Ganesh.
This is <unk> so yeah.
Hanmi had yesterday.
So youll see there.
Gotcha.
Hi.
Thank you gale, bringing liquidity into arena.
That was primarily due to the natural decline of our some out hurricanes.
<unk> franchise as well as the sales decline.
Part of Q2.
Negative impact of <unk>.
Exchange rate.
I see thank you Ken I have one follow up on.
Brand advertising.
So if management can comment regarding the guidance that you provide for <unk> X.
Well ask your thoughts into 2023 are you more confidence or less confidence about the recovery pace of that sentiment into next year.
Okay.
Well, we are confident because our.
Platform, our user base is growing and also our.
Broadcasting and also our unique marketing events activities very unique no. Other company does not have this kind of things.
So we are confident Bob but it really depend on the.
Overall economic situations.
<unk>.
And also.
In the future.
<unk> 19.
Policy right.
So it all depends.
<unk>.
If the economy is doing well we are very confident that we will do well, we'll do better than the overall average.
Average.
But it really depends.
Kelly Coffey policy.
Okay.
Just lastly on the share buyback I think you mentioned given because of the macro weakness. So you wanted to be a little bit cautious on spending the money right, but let's say noncore we cover.
Your gaming business is doing well.
Advertising also recover.
We're probably still around this LIBOR then you would consider a more aggressive buyback is that what you mean.
We will not exclude that possibility.
Okay Alright, Thank you Charles Thank you management alright.
Yeah.
Thank you for the questions that concludes today's conference call. Thank you for your participation you may now disconnect.