Iqiyi’s “Apple Orchard” is growing, but it’s not yet flourishing.
On November 7, iQiyi announced its third quarter financial report as of September 30, 2019.
The financial report shows that in the third quarter of 2019, iQiyi’s revenue reached 7.4 billion yuan, up 7% year-on-year, and the market expectation was 7.242 billion yuan; net loss for the quarter was 3.7 billion yuan, up 19.4% year-on-year. In the same period last year, it was 3.1 billion yuan, and the net loss in the previous quarter was 2.3 billion yuan.
As of press time, the share price of Iqiyi has risen by 3.84%.
IQIYI stock price chart Image source:Oriental Fortune Securities
In the last quarter earnings conference call, iQiyi said that content extension and policy supervision will improve and relax in Q3.
Reflected in this quarter’s earnings report, iQIYI membership service revenue grew further, contributing more than half to total quarterly revenue. Member service revenue for the quarter was $3.7 billion, a 30% increase over the same period in 2018. Iqiyi said that the original content is still an important reason for the steady increase in the number of subscribers. This quarter subscription membership reached 105.8 million, and subscription membership increased by 31% year-on-year.
In addition, Iqiyi also said that it has continuously adjusted the content products through AI technology and other methods to optimize the efficiency of monetization.
In the third quarter, iQiyi’s series of episodes included “The Edge of the Margin”, “The Fire School”, “Little Joy” and “My Mogley Boy”, as well as several variety shows, such as “Chinese New Rap” “The Big Band” and “Man with Housework”, “The Summer of the Band” also continued to air this quarter, ending on August 10. From the perspective of the entire third quarter, there is a lack of explosive drama.
Online advertising revenue continued to be under pressure this quarter, with revenue of 2.1 billion yuan, compared with 2.4 billion yuan in the same period last year, down 14% year-on-year. Iqiyi aspect