Q3 2023 Phoenix New Media Ltd Earnings Call
[music].
Conference call for the third quarter of 'twenty to 'twenty three joining me here today are CEO, Mr. Johnson, and our CFO Mr hour loop.
During this call our management team will begin by providing an overview of our quarterly results followed by a Q&A session.
You can find the financial results for the third quarter of 2023 as well as the webcast of this conference call on our website at IR day, iPhone Dot com.
A replay of this call will also be made available on the website within the next few hours.
Before we proceed I would like to draw your attention to our safe Harbor statement, which can be found in our earnings press release.
This statement is important as it as it pertains to our forward looking statements during the call.
Additionally, please note that unless otherwise specified all figures mentioned throughout this conference call are you RMB.
Now I will pass the call over to Mr. <unk>, our CEO for some opening remarks I will provide a translation.
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Hi, Susan.
Hello, everyone in the second half of the year, we find ourselves navigating a macro environment so with uncertainties.
This challenging backdrop backdrop has created headwinds in our advertising business.
However in this trying time, it's imperative that we remain faithful to our core values and competencies.
At the same time, we must proactively adapt our decision, making process and innovation strategies to quickly respond to the ever evolving market.
We need to clarify our core competency, which is news.
We will continue to leverage our advantage in news coverage and creating irreplaceable content quality that sets us apart from others.
Supporting our content marketing efforts.
Next I will provide a more detailed rundown of our operation in the third quarter.
Please go ahead.
Thank you.
During the third quarter, we were committed as a whole.
Adding the quality of our content as a mainstream media outlets.
The current turbulent global landscape and the macro environment trustworthiness.
First as a central requirement for our users.
Since the outbreak of the Israel Palestinian conflict, we have compared over 100, new splash and articles establishing ourselves as the go to source for tracking the development of the crisis.
Our content has been widely shared by users, resulting in a substantial boost in traffic.
This is driven by hot topics accounted for 30% of the total new.
Visit.
Even our large World Cup, we provided onsite reporting under the title slide from the Israel Palestinian conflict June got a builder.
Are things generally.
Tier.
So the road.
The city closest to the Israel Palestinian conflict zone at <unk>.
Got a border.
Located lifestyle, one kilometer away.
The report centered on the local people to cities situation and grown that reality.
<unk> valuable insights for the audience to grasp the real situation on the ground.
On the sports front from we closely follow the Asian games.
Giving high exposure and attention on our reverse social platforms.
Our swap and the video channels released nearly 100 short video.
Accumulating a total view count of 37 minutes.
For news and information in general are fixed new account on Dorian Heskett 331 million new followers in the third quarter.
So <unk> a total of 10 million followers.
We continue to maximize the dissemination of our content and unlock our business potential on social media platforms.
In the post pandemic era <unk>.
The videos are experiencing heightened anxiety and fatigue user.
Users are increasingly seeking content provides positive energy.
Particularly in a concise and the high quality for leases, where we come in closely attuned to users emotional needs providing them with positive emotional says tennis.
Accordingly, our original content and focus on individual experiences and the articulation of individual demand.
We also continue to demonstrate our social responsibility in action.
In October the 2023 forever happiness Cherokee Gala jointly organized by <unk> and the German Foundation, Canada was successfully held in Vancouver, Canada.
Local overseas Chinese political in the business either.
Your line is zero.
Celebrities and media partners gathered for the event.
This marks the fifth time, so forever, having these Cherokee golar one abroad.
The event was attended by the console general of China in Vancouver, Young Soo shareholder Foundation, founder and chairman to tone and other.
Dignitaries.
The U S with over $2 seven minute changes, which will be fully used for <unk>.
Often and.
Vantage.
Yes.
On the advertising front, we faced some challenges in the third quarter.
Market, where traffic has picked up and the growth has slowed down.
The key to future growth lies in our ability to precisely target and the influence specifics potential audiences.
As a mainstream media outlets. We are we have earned recognition from advertisers for our credibility and influence.
Go ahead, we can sell at creating a high quality content.
That resonate with our brand values and identity.
And the other half.
We are adept at crafting immersive brand experiences zero offline U S offering interactive platforms for brand consumer connections.
However, we also need to engage in self reflection and foster innovation from within.
We urgently need to clarify all of our growth strategy.
In house understanding, which industries, we will target identifying key new customers and understanding their unique marketing needs.
Once we have established our growth it's crucial to ensure that our company's resources aligned with these objectives.
As we plan for the upcoming year, we are closely analyzing and preparing for organizational restructuring.
In order to accelerate the innovation and the upgrading of our content marketing product to adapt more swiftly to market change.
By leveraging our extensive media influence and the international reach.
Following new opportunities in areas, such as the global market culture, tourism marketing and social media platforms.
We will make adjustments based on comprehensive data driven and the rational plants to lay a solid foundation for future operation.
In summary <unk>.
Counting the current market environment and the formidable challenges it presents.
We are acutely aware of the urgency to change.
In addition to improving content and product quality.
Wincing media influence and the brand and the value. We are also adjusting the company's organizational structure and the incentive mechanisms.
Mechanisms to accelerate innovation and the upgrade of content marketing product.
Our goal is to respond more promptly to market demands.
Our financial objectives at the earliest opportunity.
I will now walk you through our financial performance for the third quarter of 2023.
All figures mentioned that will be in RMB.
Our total revenues or $153 6 million at.
As compared to $194 8 million in the same period of last year.
To elaborate net advertising revenues or $134 3 million compared to $172 four minutes in the same period of last year.
The decrease was mainly due to the reduction in advertising spending of advertisers in certain industries and intensified.
<unk> industrial wide competition.
Pedro services revenues or $19 three minute compared to $22 four minutes in the same period of last year.
Decrease was mainly due to the decline in E Commerce revenues.
Loss from operations was $38 5 million compared to loss from operations of $36 five minutes in the same period of last year.
Net loss attributable to iPhone was $21 5 million compared to nine income attributable to iPhone of RMB $24 three minutes in the same period of last year.
Moving onto our balance sheet as of September 32000 to industry.
The companys cash and cash equivalents.
Term deposits short term investments and restricted cash or RMB 1.03 billion.
Approximately U S dollar 141 8 million.
Finally, I'd like to provide our business outlook for the fourth quarter of 'twenty due to industry.
We are forecasting total revenues to be between $179 8 million and the $199 and minute.
For net advertising revenues, we are forecasting between <unk> hundred $69 million and the $184 million.
For paid service revenues, we are forecasting between 10 8 million and $15 8 million.
This forecast reflects our current and preliminary view.
Which are subject to change and the substantial uncertainties.
This concludes the prepared portion of our call we're now ready for questions.
Operator, Please go ahead.
Thank you and as a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Please standby, while we compile the Q&A roster once again Thats star one one for questions.
Question comes from the line of Alex Chang from first Shanghai. Please ask your question Alex.
Good morning management. Thank you for taking my question.
My question is that so.
Our company had previously announced a stock buyback plan could you. Please provide us with some insight and updates on the buyback transaction. Thank you.
Hi, Thank you for the question.
Actually.
Sure.
We have confidence in the company's fundamentals and future performance.
Which is why the board of directors approved the buyback plan.
Currently the company has a very strong cash position, providing enough support for the covenants for future growth for our considerable doable pure.
Through this buyback we aim to return some cash to our shareholders from now until.
At the end of February next year.
We will execute the plan in compliance with the U S Securities law and other relevant regulations.
On the buyback transactions will be conducted in the open market at market prices.
We expect to start the buyback transactions shortly after the Q3 earnings release.
Thank you Alice.
Thank you that's very helpful.
Thank you.
And that's all we have for question and answer session.
I'd now like to turn the conference back to move to the call for any additional closing comments.
Thank you we have now come to the end of our Q&A session and our conference call. Please feel free to contact us. If you have any further questions. Thank you for joining us today on this call have a good day.
Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.
Okay.
[music].
Hum.
[music].
Yes.
[music].
Good day, and thank you for standing by welcome to Phoenix, New Media third quarter 22, 83 earnings call.
At this time all participants are in listen only mode. After the speaker's presentation there'll be question and answer session.
To ask a question. During this session you will need to press star one one on your telephone.
You had an automated message revising your hand is raised.
To withdraw your question. Please press star one again.
Please be advised that today's conference is being recorded.
I would now like to hand, the conference over to move <unk> from Investor Relations Department.
Go ahead.
Thank you operator wells.
Welcome to Phoenix, New Media earnings conference call for the third quarter of 2023.
Joining me here today are CEO, Mr Haisheng, <unk> and our CFO, Mr. Our leu.
During this call our management team will begin by providing an overview of our quarterly results followed by a Q&A session.
You can final financial results for the third quarter of 2023 as well as the webcast of this conference call on our website at IR the iPhone Dot com.
A replay of this call will also be made available on the website within the next few hours.
Before we proceed I would like to draw your attention to our safe Harbor statement, which can be found in our earnings press release.
This statement is important as it as it pertains to our forward looking statements during the call. Additionally, please note that unless otherwise specified all figures mentioned throughout this conference call are in RMB.
Now I will pass the call over to Mr. Zhang our CEO for some opening remarks, I will provide a translation.
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The <unk>.
Bill.
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Woman does she has her chongqing to you too.
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Well Neal immune to.
<unk> daily.
Well emission credits related Youll soon.
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We'll go to you guys soon.
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Okay.
Yeah.
Hi, Susan.
Hello, everyone in the second half of the year, we find ourselves navigating a macro environment, so with all certainties.
Challenging backdrop with the backdrop has created headwinds in our advertising business.
However in these trying times, it's imperative that we remain faithful to our core values and competencies.
At the same time, we must proactively adapt our decision, making process and innovation strategies to quickly respond to the ever evolving market.
We need to clarify our core competency, which is new.
We'll continue to leverage our advantage in news coverage and create an irreplaceable content quality to set us apart from others.
Better supporting our content marketing efforts.
Next I will provide a more detailed rundown of our obligation in the third quarter.
Please go ahead.
Thank you.
During the third quarter, we were committed and are holding the quality of our content.
Our mainstream media outlets.
The current turbulent global landscape and the macro environment trustworthy news has emerged as a central requirement for our users.
Since the outbreak of the Israel Palestinian conflict, we have compelled over 100, new splash and articles establishing ourself.
As the go to source for tracking the development of the crisis.
Our content has been widely shared by users, resulting in a substantial boost in traffic.
This is driven by hot topics accounted for 30% of the total new.
Visit.
In our live broadcast we provided onsite reporting under the title slide from the Israel Palestinian conflict zone at Gaza builder.
Our Phoenix generally Tal.
<unk>.
<unk> two <unk> to <unk>.
City closest to the Israel Palestine complex as it got a border.
Located lifestyle, one kilometer away.
So to report centered on the local people.
<unk> situation and ground that reality offering valuable insights for the audience to grasp the real situation on the ground.
On the sports front from we closely follow that the Asian games, achieving high exposure and attention on various social platforms.
Our swap and the video channels released nearly 100 short videos.
Simulating a total view count of 37 minutes.
For news and information in general.
Our fixed new account W has skin 331 million new followers in this third quarter.
<unk>, a total of 10 million followers.
We continue to maximize the dissemination of our content and unlock our business potential on social media platforms.
In the post pandemic Bureau individuals.
Parenting heightened.
Cherokee and fatigue.
Users are increasingly seeking content, let it provides positive energy.
Similarly in a concise and the high quality for leases, where we come in closely attuned to users emotional needs providing them with positive emotional says tennis.
Accordingly, our original content and focus on.
Individual experiences and the articulation of individual demand.
We also continue to demonstrate our social responsibility in action.
In October the 2023 Forever Happy News charity Gala jointly organized by <unk> and the German Foundation, Canada was successfully held in Vancouver, Canada.
Local overseas Chinese political and the business. These are.
Your line of therapies.
Leverages and media partners gathered for the event.
This marks the fifth time forever, having as Cherokee Golar went abroad.
The event was attended by the console general of China in Vancouver, Young Soo shareholder Foundation, founder and the chairman to at home and other.
Dignitaries.
The U S with over $2 seven minute change too.
Which will be fully used for <unk>.
Office and <unk>.
Advantage.
On the advertising front, we faced some challenges in the third quarter.
Market, where traffic has peaked and the growth has slowed down.
The key to future growth lies in our ability to precisely target and the influence specificities potential audiences.
As a mainstream media outlets. We are we have earned recognition from advertisers for our credibility and influence.
Go ahead, we can sell at creating a high quality content.
That resonate with our brand values and identity.
On the other hand.
Adapt at crafting immersive brand experiences zero offline events.
<unk> interactive platforms for brand consumer connections.
However, we also need to engage in self reflection and foster innovation from within.
We urgently need to clarify all of our growth strategy.
In house understanding, which industries, we will target identifying key new customers.
Understanding their unique marketing is.
Once we have established our goal it's crucial to ensure that our company's resources aligned with these objectives.
As we plan for the upcoming year, we are closely analyzing and preparing for organizational restructuring.
To accelerate the innovation and the upgrading of our content and the marketing product to adapt more swiftly to market changes.
Leveraging our extensive media influence and the international reach.
Barring new opportunities.
Such as the global market culture, tourism, marketing and social media platforms.
We will make adjustments based on comprehensive data driven and the rationale plants to lay a solid foundation for future operation.
In summary.
Confronting the current market environment and the formidable challenges it presents.
Acutely aware of the urgency to change.
In addition to improving content and the product quality enhancing media influence and the brand and the value. We are also adjusting the company's organizational structure and the incentive mechanisms.
Mechanisms to accelerate innovation and the upgrade of content marketing product.
Our goal is to respond more promptly to market demands.
Our financial objectives at the earliest opportunity.
I will now walk you through our financial performance for the third quarter of 2023.
All figures mentioned that will be in RMB.
Our total revenues were 153 6 million as compared to $194 8 million in the same period of last year.
To elaborate net advertising revenues for $134 3 million compared to $172 for a minute in the same period of last year.
The decrease was mainly due to the reduction in advertising spending of advertisers in certain industries.
The Tennessee, five industrial wide competition.
Pedro services revenues or $19 three per minute compared to $22 four minutes in the same period of last year.
The decrease was mainly due to the decline in E Commerce revenues.
Loss from operations was $38 5 million compared to loss from operations of $36 five minutes in the same period of last year.
Net loss attributable to iPhone was 21 5 million compared to net income attributable to iPhone of RMB $24 three minutes in the same period of last year.
Onto our balance sheet.
September 30 tangent industry to.
The companys cash and cash equivalents.
Deposits short term investments and restricted cash or RMB 1.03 billion.
Approximately U S dollar 141 8 million.
Finally, I'd like to provide our business outlook for the fourth quarter of 'twenty due to industry.
We are forecasting total revenues to be between 179 8 million and the $199 and minute.
For net advertising revenues, we are forecasting between <unk> hundred 69 million and the 184 minutes.
For paid service revenues, we are forecasting between $10 8 million and $15 8 million.
This forecast reflects our current and the preliminary view.
Which are subject to change and the substantial uncertainties.
This concludes the prepared portion of our call we're now ready for questions.
Operator, Please go ahead.
Thank you.
As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Please standby, while we compile the Q&A roster once again Thats star one one for questions.
Question comes from the line of <unk> Tang from first Shanghai.
As your question Alex.
Good morning management. Thank you for taking my question My question Scott.
Our company had previously announced a stock buyback plan could you. Please provide us with some insight and updates on the buyback transaction. Thank you.
Hi, Thank you for the question.
The extra week.
Yeah.
We have confidence in the company's fundamentals and future performance.
Which is why the board of directors approved.
Buyback plan currently the company has a very strong cash position providing enough support for the covenants for future growth for our considerable doable pure.
So really its buyback we aim to return some cash to our shareholders from now on Q.
End of February next year.
We will execute the plan in compliance with the U S Securities law and other relevant regulations.
And the buyback transactions will be conducted in the open market at market prices.
We expect to see.
Start the buyback transactions shortly after the Q3 earnings release.
Thank you Alice.
Thank you that's very helpful.
Thank you.
And that's all we have for question and answer session.
I'd now like to turn the conference back to move to the call for any additional closing comments.
Thank you we have now come to the end of our Q&A session and our conference call. Please feel free to contact us. If you have any further questions. Thank you for joining us today on this call have a good day.
Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.