Phoenix New Media (FENG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues rose 1.4% year-over-year to RMB 155.2 million, driven by a surge in paid services despite a decline in advertising.

• Delivered authoritative reporting, content innovation, and new commercial partnerships, reinforcing industry leadership.

• Gross profit increased 42.5% year-over-year to RMB 62.7 million, with gross margin improving to 40.4%.

• Net loss attributable to shareholders widened to RMB 29.7 million, with net margin at negative 19.2%.

• Management emphasized operational efficiency and content innovation as strategic priorities.

Financial highlights

• Total revenue reached RMB 155.2 million, up 1.4% year-on-year.

• Net advertising revenue was RMB 120.5 million, down 13.1% year-on-year.

• Paid services revenue surged 141% year-on-year to RMB 34.7 million, led by digital reading services.

• Cost of revenues decreased by 15.1% to RMB 92.5 million.

• Operating expenses rose 25.6% to RMB 101.1 million, mainly due to higher sales and marketing for digital reading.

Outlook and guidance

• Q2 2025 total revenue forecasted between RMB 182.1 million and RMB 197.1 million.

• Net advertising revenue projected at RMB 148.7–158.7 million; paid services at RMB 33.4–38.4 million.

• Management notes substantial macroeconomic uncertainty affecting forecasts.