Phoenix New Media ( (FENG) ) has released its Q3 earnings. Here is a breakdown of the information Phoenix New Media presented to its investors.
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Phoenix New Media Limited, known as ifeng, is a leading Chinese new media company that offers premium content across PC and mobile platforms, originating from Phoenix TV, a prominent global Chinese language TV network. The company focuses on delivering professional news and quality information while also facilitating user-generated content sharing.
In its third quarter of 2024, Phoenix New Media reported a 7% rise in total revenues to RMB164.3 million, driven by a substantial increase in net advertising revenues. The company attributed this growth to its strategic focus on enhancing content quality and optimizing its client portfolio, which bolstered its monetization capabilities.
Key financial metrics revealed a 10.5% increase in net advertising revenues to RMB148.4 million, while paid services revenues saw a decline of 17.6% to RMB15.9 million due to reduced content spending by some customers and a scaled-down E-commerce business. The cost of revenues saw a slight rise of 0.8%, resulting in a gross profit increase of 18.9%, with a gross margin improvement to 37.9%. Despite a net loss of RMB18.5 million, the company managed to reduce its operating loss from RMB38.5 million in the previous year to RMB25.9 million.
The company remains focused on optimizing operational efficiency and fostering innovation between content and marketing. Looking forward, Phoenix New Media projects a positive outlook for the fourth quarter of 2024, with revenue expectations ranging from RMB197.9 million to RMB212.9 million, indicating confidence in its continued strategic efforts and market position.
