Phoenix New Media Ltd (FENG) 2023 Q4 法說會逐字稿

Good day and thank you for standing by. Welcome to Phoenix New Media fourth-quarter 2023 earnings call. (Operator Instructions)

美好的一天，感謝您的支持。歡迎參加鳳凰新媒體 2023 年第四季財報電話會議。（操作員說明）

Please be advised that today's conference is being recorded. I would like to hand the conference over to your first speaker today Muzi Guo of IR Department. Please go ahead.

請注意，今天的會議正在錄製中。我想把今天的會議交給IR部的郭木子來發言。請繼續。

Thank you, operator. Welcome to Phoenix New Media's earnings conference call for the fourth quarter of 2023. Joining me here today are our CEO, Mr. Yusheng Sun; and our CFO, Mr. Edward Lu. 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 fourth quarter of 2023, as well as the webcast of this conference call on our website at ir.ifeng.com. A replay of this call will also be made available on the website within the next few hours.

謝謝你，接線生。歡迎參加鳳凰新媒體2023年第四季財報電話會議。今天和我一起來到這裡的是我們的執行長孫玉生先生；以及我們的財務長盧先生。在這次電話會議中，我們的管理團隊將首先概述我們的季度業績，然後進行問答環節。您可以在我們的網站ir.ifeng.com上找到2023年第四季的財務業績以及本次電話會議的網路直播。在接下來的幾個小時內，該電話會議的重播也將在網站上發布。

Before we proceed I would like to draw your attention to our Safe Harbor statement, which can be found in our earnings press release. The statement as important as it pertains to our forward looking statements during this call. Additionally, please note that unless otherwise specified, all figures mentioned throughout this conference call are in RMB.

在我們繼續之前，我想提請您注意我們的安全港聲明，該聲明可以在我們的收益新聞稿中找到。該聲明與我們在本次電話會議期間的前瞻性聲明同樣重要。此外，請注意，除非另有說明，本次電話會議中提到的所有數字均以人民幣為單位。

Now I will pass the call to Mr. Sun, our CEO. For his opening remarks, I will provide the translation.

現在我將電話轉給我們的執行長孫先生。對於他的開場白，我將提供翻譯。

(Interpreted)

（解釋）

Hello, dear investors. Today's meeting aims to provide an overview of the company's operational progress in the fourth quarter and to share our reflections for the future. We look forward to engaging in discussions and addressing any questions you may have.

你好，親愛的投資者。今天的會議旨在概述公司第四季的營運進展，並分享我們對未來的思考。我們期待參與討論並解決您可能提出的任何問題。

Before delving into the report, I'd like to emphasize that, regardless of shifts in the macro environment, our company's enduring core competency lies in “news”. This competency will be a focal point in our ongoing efforts to optimize operational resources, enhance brand value premium, foster innovation in business models, and ensure the sustained and robust development of the company.

在深入研究報告之前，我想強調的是，無論宏觀環境如何變化，我們公司持久的核心競爭力在於「新聞」。這項能力將成為我們不斷優化營運資源、提升品牌價值溢價、促進商業模式創新、確保公司持續健康發展的著力點。

Now I’ll have Edward present a more detailed report on my behalf.

現在我將讓愛德華代表我提交一份更詳細的報告。

In the fourth quarter, we focused on boosting our content productivity, emphasizing content distribution via video platforms, and the monetization of our content and event marketing offerings.

第四季度，我們專注於提高內容生產力，強調透過影片平台進行內容分發，以及內容和活動行銷產品的貨幣化。

Throughout Q4, we maintained our lead in covering major events and breaking news, such as the Third Belt and Road Forum for International Cooperation in Beijing. Through meticulous planning and swift execution, we delivered a diverse array of reports, from on-ground interviews to insightful commentaries, while leveraging our social media presence to disseminate curated content across various platforms. Our interviews with influential political figures, foreign journalists, and Belt and Road scholars garnered widespread acclaim, reflected in the remarkable 30 million views of Belt and Road-related content on our Weixin Video accounts.

整個第四季度，我們在重大事件和突發新聞報道方面保持領先，例如在北京舉行的第三屆「一帶一路」國際合作高峰論壇。透過精心策劃和快速執行，我們提供了從實地採訪到富有洞察力的評論的各種報告，同時利用我們的社交媒體在各個平台上傳播精選內容。我們對有影響力的政治人物、外國記者和「一帶一路」學者的採訪獲得了廣泛好評，這反映在我們的微信視訊帳戶上與「一帶一路」相關的內容的瀏覽量達到了 3000 萬次。

Our dedication to original content creation was duly recognized, exemplified by our short documentary series “Journey”, which clinched the China Documentary Top 10 Award. Across the 11 episodes released in Q4, “Journey” captivated audiences with over 700 million views, with several episodes surpassing the 100 million-view milestone. Notably, the portrayal of “Elderly People in Nursing Homes” resonated deeply, accumulating 230 million views overall, including 110 million views on Douyin, securing prominent positions on trending and social lists. By year-end, “Journey” boasted over 2 million subscribers on Douyin, highlighting its commercial viability within our content portfolio.

我們對原創內容創作的奉獻得到了應有的認可，我們的短紀錄片《征途》系列榮獲中國紀錄片十大獎就是最好的證明。在第四季發布的 11 集中，《風之旅人》吸引了超過 7 億的觀眾，其中幾集的觀看次數突破了 1 億大關。值得注意的是，「養老院老人」的形象引起強烈共鳴，累計瀏覽量達2.3億次，其中抖音瀏覽量達1.1億次，在熱搜榜和社交榜單上佔據顯著位置。截至年底，《征途》在抖音上擁有超過 200 萬訂閱者，凸顯了其在我們內容組合中的商業可行性。

As the year drew to a close, we successfully executed a series of flagship events and marketing initiatives, reaffirming our media influence in the industry. Our iFeng Finance Summit in December, themed "Crossing the Cycle, Boosting Confidence," convened luminaries from academia and industry to engage in discussions on issues shaping the global and Chinese economies in 2024. Additionally, we hosted the first Influencer Awards, bringing together over 100 KOLs, MCN agency representatives, and brand representatives to celebrate the transformative impact of social media influencers across diverse domains, from beauty and fashion to fitness and lifestyle, underscoring our commitment to recognizing and amplifying positive industry developments.

年末之際，我們成功舉辦了一系列旗艦活動和行銷活動，再次證明了我們在業界的媒體影響力。12月的鳳凰財經高峰會以「跨越週期，提振信心」為主題，匯集了學術界和工業界的傑出人物，共同討論影響2024年全球和中國經濟的問題。此外，我們舉辦了首屆影響者獎，匯集了100 多名KOL、MCN 機構代表和品牌代表，慶祝社交媒體影響者在美容和時尚、健身和生活方式等不同領域所產生的變革性影響，強調了我們致力於認可和認可擴大行業積極發展。

On the product front, we concentrated on optimizing the content recommendation algorithm, resulting in a seamless fusion of timely updates, personalized insights, and immersive experiences. Bolstered by a 20% year-on-year increase in click-through rates and double-digit growth in video engagement metrics, our content strategy was well received by our users, driving deeper engagement and extended user sessions.

在產品方面，我們專注於優化內容推薦演算法，實現及時更新、個人化洞察和沈浸式體驗的無縫融合。由於點擊率同比增長 20% 和視頻參與度指標兩位數增長，我們的內容策略受到了用戶的好評，推動了更深入的參與度和更長的用戶會話。

In parallel with our content and product enhancements, we embarked on a strategic overhaul of our advertising sales team, transitioning from regional sales hubs to industry-specific business units. This realignment facilitated sharper industry focus, streamlined resource allocation, and accelerated innovation, laying the groundwork for sustained commercial growth.

在增強內容和產品的同時，我們開始對廣告銷售團隊進行策略性改革，從區域銷售中心過渡到特定產業的業務部門。這種調整促進了更清晰的產業聚焦，簡化了資源配置，加速了創新，為持續的商業成長奠定了基礎。

Our priorities are clear: to expand our customer base, unlock untapped opportunities, and fortify our market positioning across diverse segments. With a tailored approach to customer engagement, strategic content investments, and a renewed focus on marketing differentiation, we are well-positioned to surpass conventional media boundaries and provide comprehensive marketing solutions to our clients.

我們的優先事項很明確：擴大我們的客戶群，釋放未開發的機會，並鞏固我們在不同細分市場的市場定位。憑藉量身定制的客戶參與方法、策略內容投資以及對行銷差異化的重新關注，我們有能力超越傳統媒體界限，為客戶提供全面的行銷解決方案。

In 2023, through improvements in operational efficiency, we managed to significantly reduce operating losses. Moving forward, we are committed to sustaining this momentum by prioritizing operational excellence and strategic innovation, while also continuing to strengthen our media influence and brand value. As such, we are confident in our ability to navigate the evolving media landscape and work towards achieving our financial objectives.

2023年，透過提高營運效率，我們成功減少了營運損失。展望未來，我們致力於透過優先考慮卓越營運和策略創新來維持這一勢頭，同時繼續增強我們的媒體影響力和品牌價值。因此，我們對駕馭不斷變化的媒體格局並努力實現我們的財務目標的能力充滿信心。

This concludes our CEO, Mr. Sun’s prepared remarks. I will now walk you through our financial performance for the fourth quarter of 2023. All figures mentioned will be in RMB.

我們的執行長孫先生準備好的演講到此結束。現在我將向您介紹我們 2023 年第四季的財務表現。所有提及的數字均以人民幣為單位。

Our total revenues were 211.8 million, as compared to 223.9 million in the same period of last year. To elaborate, net advertising revenues were 197 million, compared to 205.4 million in the same period of last year. The decrease was mainly due to the reduction in advertising spending of advertisers in certain industries and the intensified industry-wide competition.

我們的總收入為 2.118 億美元，而去年同期為 2.239 億美元。具體來說，淨廣告收入為1.97億美元，去年同期為2.054億美元。下降的主要原因是部分行業廣告主廣告支出減少以及行業競爭加劇。

Paid services revenues were 14.8 million, compared to 18.5 million in the same period of last year. The decrease was mainly due to the decline in E-commerce revenues.

付費服務收入為1480萬，而去年同期為1850萬。下降的主要原因是電子商務收入下降。

Cost of revenues in the fourth quarter of 2023 decreased by 11.3% to 120.5 million from 135.8 million in the same period of last year, and gross margin in the fourth quarter of 2023 increased to 43.1% from 39.4%, as a result of strict cost control measures implemented.

2023年第四季營收成本從去年同期的1.358億下降11.3%至1.205億，2023年第四季毛利率從39.4%成長至43.1%，得益於嚴格的成本控制已實施的控制措施。

Income from operations was 22.9 million, compared to income from operations of 46.7 million in the same period of last year.

營業收入為2,290萬美元，而去年同期的營業收入為4,670萬美元。

Net income attributable to iFeng was 8.1 million, compared to net income attributable to iFeng of 41.6 million in the same period of last year.

歸屬於鳳凰網的淨利為810萬，而去年同期歸屬於鳳凰網的淨利為4,160萬。

Moving on to our balance sheet. As of December 31, 2023, the Company's cash and cash equivalents, term deposits, short-term investments, and restricted cash were RMB1.09 billion, or approximately USD154 million.

繼續我們的資產負債表。截至2023年12月31日，本公司的現金及現金等價物、定期存款、短期投資及限制性現金為人民幣10.9億元，約1.54億美元。

Finally, I'd like to provide our business outlook for the first quarter of 2024. We are forecasting total revenues to be between 130.8 million and 145.8 million. For net advertising revenues, we are forecasting between 121.3 million and 131.3 million. For paid service revenues, we are forecasting between 9.5 million and 14.5 million. These forecasts reflect our current and preliminary view, which are subject to changes and substantial uncertainties.

最後，我想提供我們對 2024 年第一季的業務展望。我們預計總收入將在 1.308 億至 1.458 億之間。對於淨廣告收入，我們預測在 1.213 億至 1.313 億之間。對於付費服務收入，我們預測在 950 萬到 1450 萬之間。這些預測反映了我們當前和初步的觀點，可能會改變並存在很大的不確定性。

This concludes the prepared portion of our call. We are now ready for questions. Operator, please go ahead.

我們電話會議的準備部分到此結束。我們現在準備好提問了。接線員，請繼續。

Thank you.(Operator Instructions)

謝謝。

Alice Tang, First Shanghai.

Alice Tang，第一上海。

Good morning. Thank you for taking my question. And so it appears that the company's operational profits saw a notable uptick in 2023. Could you please provide some insights into your expectations for the company's performance in 2024? And additionally, what are the prospects for the advertising market anticipated for the upcoming year?

早安.感謝您回答我的問題。因此，該公司的營業利潤在 2023 年似乎出現了顯著上升。您能否談談您對公司2024年業績的預期？此外，明年廣告市場的前景如何？

Thank you.

謝謝。

Thank you for the question. This year, we will focus on further boosting operating profit and reducing losses. This means increasing revenue, keep a close eye on our costs, and ensuring stable cash flow. When we planned out our goals for 2024, we took a good hard look at the landscape and came up with some solid strategies to help us hit those targets. We are beefing up collaboration between our sales and content teams, making sure our tech and management are on point providing essential support. We also set up operational metrics that are both actionable and accountable, supplemented by appropriate incentive structures to drive performance.

感謝你的提問。今年，我們將著力進一步提升營業利潤、減少虧損。這意味著增加收入，密切注意我們的成本，並確保穩定的現金流。當我們規劃 2024 年的目標時，我們認真審視了情勢，並提出了一些可靠的策略來幫助我們實現這些目標。我們正在加強銷售和內容團隊之間的合作，確保我們的技術和管理層能夠提供必要的支援。我們也制定了既可操作又可問責的營運指標，並輔以適當的激勵結構來推動績效。

Now, about the advertising market - we saw a decrease in internet ad sizes last year. The advertising market will still be closely tied to economic shifts. There will be challenges, but regardless of the environment, we believe there are always opportunities to pursue. Through innovative thinking, targeted strategies, and execution, we believe we can seize the opportunities. We will maintain our unique positioning as a mainstream media outlet while accelerating the development of innovative marketing solutions and responding quickly to market changes. Leveraging our extensive media influence and international marketing capabilities, we'll explore new avenues for growth in areas like global branding, cultural tourism marketing, and the monetization of our accounts on the video platforms.

現在，關於廣告市場——我們去年看到網路廣告規模有所下降。廣告市場仍將與經濟變化密切相關。挑戰固然存在，但無論環境如何，我們相信總有機會追求。透過創新思維、針對性策略和執行力，我們相信我們能夠抓住機會。我們將維持主流媒體的獨特定位，同時加速開發創新行銷解決方案，快速回應市場變化。憑藉我們廣泛的媒體影響力和國際行銷能力，我們將在全球品牌、文化旅遊行銷和視訊平台帳戶變現等領域探索新的成長途徑。

Thank you for the question. And I see no further questions at this time. I'd like to hand back the conference to Muzi. Please go ahead.

感謝你的提問。目前我沒有看到更多問題。我想把會議交還給木子。請繼續。

Thank you. We have 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 and have a good day.

謝謝。我們的問答環節和電話會議已經結束，如果您有任何其他問題，請隨時與我們聯繫。感謝您今天參加我們的電話會議，祝您有美好的一天。

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。

Portions of this transcript that are marked (Interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本筆錄中標記為（已翻譯）的部分是由現場通話中的口譯員朗讀的。口譯員由贊助本次活動的公司提供。