Q2 2024 Phoenix New Media Ltd Earnings Call

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Zucker from IR Department. Please go ahead.

Zucker: Thank you operator.

Speaker Change: Welcome to Phoenix, New Medias earnings conference call for the second quarter of 2020 for joining me here today are CEO, Mr. Vishal Sun and our CFO Mr. Andrew Lu.

Speaker Change: During this call our management team will start with an overview of our quarterly results followed by a Q&A session.

Speaker Change: Can final quarterly results as well as the webcast of this conference call on our website at IR the iPhone Dot com.

Speaker Change: Before the management's prepared remarks, I would like to draw your attention to our safe Harbor statement contained in our earnings press release, which also pertains to our forward looking statements. During this call. Additionally.

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

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

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Speaker Change: Paul.

Doug: Go ahead Doug.

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Speaker Change: Simon.

Speaker Change: Ladies and gentlemen.

Speaker Change: Right.

Speaker Change: <unk> Hello, Linda.

Speaker Change: Phil.

Speaker Change: Oh for the gym.

Speaker Change: You too.

Speaker Change: One daughter.

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Speaker Change: Seven young women.

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Julien: Sure Julien.

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Speaker Change: Germany, Germany June power to Michel and Sheila.

Speaker Change: Julian will talk to you.

Speaker Change: Okay.

Speaker Change: Hello, everyone. The year 2024 is already halfway over our operations have remained generally stable and we have achieved our performance targets significantly reducing losses.

Speaker Change: In the second quarter, we effectively enhanced phoenix's media influence through high quality content and news reporting coupled with extensive online distribution lay a solid foundation for commercialization.

Speaker Change: Simultaneously, we continue to refine our products optimize user experience and foster innovation in both content and commercial products.

In the second half of the year, we will continue to work with full dedication to achieve our annual operating goals to reduce losses year over year.

Speaker Change: Now I will invite Edward to provide a more detailed summary of our second quarter performance on my behalf.

Edward: Please go ahead.

Edward: Good morning.

Edward: In the second quarter, we successfully covered a series of major events, achieving extensive reach across the internet. Among the most significant international news story in the second quarter was the death of the Iranian President implant crash.

Edward: Our detailed reports included a clear timeline and the thorough analysis.

Edward: We quickly produce multiple origin of pieces, providing exclusive insights into the crash course, analyzing eros future political landscape.

Speaker Change: In discussing the country's military capabilities are.

Speaker Change: Our original series worked well together to offer comprehensive and in depth perspectives.

Speaker Change: Beyond major news events, we consistently produced original programs.

Speaker Change: Touring a steady supply of high quality content that garnered wider distribution and discussion enhancing our brands over at housing value.

Speaker Change: The in depth investigative serious.

Speaker Change: Of the store continue to excel in high quality in depth coverage of trending topics.

Speaker Change: Delivered over 20 original articles with over 100000 units on region and several with over 300000 degrees, earning.

Speaker Change: Earnings.

Speaker Change: For his commitment to objective and ethical journalism.

Speaker Change: Controversial issues.

Speaker Change: Our original video series thin slab targeting towards a younger demographic.

Speaker Change: On creating practical consumer guidance across the various scenarios.

Speaker Change: Our driving consumer concerns and providing quality oversight.

Speaker Change: In Q2 think slap produced 23 original long video.

Speaker Change: 72 original short videos and the two major industry events reports, one long video became a heat.

Speaker Change: Billy BV with over 1 million views and the serious achieved a total of $1 7 billion views across platforms.

Billy: Since lab, Billy Billy accounts.

Billy: Past 1 million follower milestone in Q2, establishing itself as a leading consumer product review IP.

Billy: Quality content with broad distribution channels and the effective user reach in.

Billy: In the second quarter, our followers and the influence on third party social media platforms grew steadily.

Billy: Our team developed a differentiated operational strategies tailored to each platform enhancing destination.

Billy: The trending topics interactive discussions and the live broadcast.

Billy: We now have approximately 170 million active user followers across all platforms.

Billy: We have developed.

Billy: Key accounts on different platforms with rapidly growing Florida basis, and the commercial value.

Billy: For example, our door count is approaching the $20 million floor milestone.

Billy: Advertising revenue from these third party platform accounts also achieved double digit growth year over year.

Billy: On the commercial front, we maintained positive momentum in the first half of the year, we expanded our efforts in the public sector beyond traditional culture and tourism promotions to include local industry bureaus and associations.

Billy: Our services extended from provincial ended CV levels to county levels, achieving year on year growth.

Billy: In terms of international marketing, we've made significant strides in meeting clients needs for overseas expansion.

Billy: Our successful execution of several overseas campaigns, such as our brands International sourcing project in New Zealand and the various award events resulted in widely discussed articles and videos on LIBOR Facebook and Twitter.

Billy: This effort effectively.

Billy: Communicated the open.

Billy: Confidence and socially responsible image of Chinese spreads.

Billy: During widespread recognition from overseas audiences.

In the second quarter of the year, we will continue to establish ourselves.

Billy: As a leading new mirror our life, we will focus on strengthening our teams professional capabilities producing quality content.

Billy: Refining our products and optimizing the user experience.

Billy: This is the core of our competitiveness.

Billy: Internet Media company.

Billy: At the same time, we will focus on further improving our operational efficiency and monetization capabilities to strengthen our position.

Speaker Change: This concludes our CEO Mr. Soon prepare to my remarks, I will now walk you through our financial performance for the second quarter of 2024.

Speaker Change: All figures mentioned that will be in RMB.

Speaker Change: Our total revenues or $168 3 million compared to $180 2 million in the same period of last year.

Speaker Change: Specifically Nike advertising revenues were $154 7 million compared to $161 eight minutes in the same period of last year paid services revenues were $13 6 million compared to 18 4 million in the same period of last year.

Speaker Change: Cost of revenues in the second quarter of 2024 decreased by 17, 2% to $102 9 million from $124 three minutes in the same period of last year.

Speaker Change: Resulting increase in gross margin from 31% to 38, 9%.

Speaker Change: Loss from operations was $8 nine minutes.

Speaker Change: Significant improvement compared to a loss from operations of $35 7 million.

Speaker Change: The same period of last year.

Speaker Change: As a result of strict cost control measures implemented.

Speaker Change: Net loss attributable to iPhone was $5 5 million compared to net loss attributable to iPhone of $71 3 million in the same period of last year.

Speaker Change: Moving on to our balance sheet as of June 32020 for the Companys cash and cash equivalents term deposits short term investments and restricted cash or $989 one minute.

Speaker Change: Approximately U S dollar $136 1 million.

Speaker Change: Finally, I'd like to provide our business outlook for the third quarter of 2024.

Speaker Change: Forecasting total revenues to be between $151 6 million and the $166 $6 million.

For net advertising revenues, we are forecasting between <unk> hundred $42 three minutes and a wider $52 3 million.

Speaker Change: For paid service revenues, we are forecasting between $9 3 million and $14 3 million this forecast.

Speaker Change: It reflects our current and preliminary.

Speaker Change: View.

Speaker Change: Subject to change.

Speaker Change: The substantial uncertainties.

Speaker Change: This concludes the prepared portion of our call. We're now ready for questions. Operator. Please go ahead.

Speaker Change: Thank you very much as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to Australia. Your question. Please press star one again, please standby as we compile the Q&A roster.

Speaker Change: Our first question comes from the line of Alex 10 office in.

Speaker Change: Shanghai. Please go ahead.

Speaker Change: Hi, Good morning, Thank you for taking my question.

Speaker Change: So the growth rate of the internet advertising market seems to be slowing down so could the management please share their views on the.

Speaker Change: Forward advertising market and discuss the relevant measures. The company is planning on taking to respond to the current market environment. Please.

Speaker Change: Hey, good morning, Thank you for the question.

Speaker Change: <unk> phone to market.

Speaker Change: Market data from the first half of 2024.

Speaker Change: Overall internet neither as spending.

Speaker Change: <unk> experienced a year over year decline.

Speaker Change: Despite this.

Speaker Change: Our advertising revenue for the first half of the year has remained stable with a slight increase which is not easy.

Speaker Change: Especially in the automotive sector.

Speaker Change: Traditional one of our strong errors as spending has dropped even further.

To keep up our revenue.

We need to step out of our comfort zone and make breakthroughs in other industry sectors.

Speaker Change: In the first half of the year, we saw significant growth.

Speaker Change: A key to areas like our alcoholic beverage.

Speaker Change: <unk> and <unk>.

Speaker Change: Public sector.

Speaker Change: Our premium IP content.

Speaker Change: The high end, the interviews align well with the branding needs.

Speaker Change: Of alcoholic beverage clients, leading to side the long term ad spending.

Speaker Change: In the.

Speaker Change: <unk> sector.

Speaker Change: We have utilized our specialized team and the trendy useful content to attract more clients.

Speaker Change: In the public sector.

Speaker Change: We have been helping cities and counties showcase your history culture.

Speaker Change: And attractions.

Speaker Change: Making them stand out and build a strong city brand images.

Speaker Change: Looking ahead to the second half of the year, our international marketing efforts also look promising with the ongoing Paris.

Speaker Change: Olympics.

Speaker Change: We are working with many brands on <unk>.

Speaker Change: Overseas event marketing.

Speaker Change: All of our clients appreciate things international image Con.

Speaker Change: Content reach and ability to execute recs campaigns.

Speaker Change: And we are confident we can continue to grow in this area.

Speaker Change: Of course.

Speaker Change: We have got challenges too.

Speaker Change: Fourth the sector.

Speaker Change: The guidance, we need to keep adjusting our strategies.

Speaker Change: With the overall trend of lower per customer transaction.

Speaker Change: We need to work hard to bring in more clients in order to hit our revenue goals.

Speaker Change: Thank you Elliot Thank you again.

Speaker Change: Thank you.

Speaker Change: Thank you for the questions I see no further questions at this time I will now turn the conference back to moved to.

Speaker Change: Thank you. This concludes our Q&A session and conference call. If you have any additional questions. Please don't hesitate to reach out to us. Thank you for joining us and have a great day.

Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.