Phoenix New Media Reports Revenue Growth Amid Challenges

Phoenix New Media ( (FENG) ) has released its Q2 earnings. Here is a breakdown of the information Phoenix New Media presented to its investors.

Phoenix New Media Limited is a prominent new media company in China, offering premium content across PC and mobile platforms, including news, video, and digital reading services. Originating from Phoenix TV, it provides a comprehensive digital experience through its diverse media channels.

In the second quarter of 2025, Phoenix New Media reported an 11.2% increase in total revenues, reaching RMB187.1 million, driven primarily by a significant rise in paid services revenues. Despite a slight decline in net advertising revenues, the company saw substantial growth in its digital reading services, contributing to a notable improvement in gross profit and margin.

Key financial highlights include a 148.5% surge in paid services revenues, largely due to a 420.3% increase in revenues from digital reading services. The company also implemented strict cost control measures, resulting in a 7.6% reduction in cost of revenues and a 40.7% increase in gross profit. However, operating expenses rose by 33.5% due to increased sales and marketing efforts, leading to a reduced operating loss compared to the previous year.

Despite these improvements, Phoenix New Media reported a net loss of RMB10.4 million, with a negative net margin of 5.5%. The company continues to face challenges in its advertising segment, but its strategic focus on digital services shows promise for future growth.

Looking ahead, Phoenix New Media anticipates further revenue growth in the third quarter of 2025, with expectations of increased advertising and paid services revenues. The management remains cautiously optimistic, acknowledging the uncertainties in the macroeconomic environment but confident in their strategic direction.