Phoenix New Media (FENG) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues rose 3% year-on-year to RMB 218.1 million, driven by paid services and content innovation, while net advertising revenues declined.

• Full-year 2024 revenues increased 1.7% to RMB 703.7 million, with net advertising up 1.8% and paid services up 0.6%.

• Gained industry and user recognition for rapid, in-depth news coverage and expanded original content IPs.

• Gross margin improved to 44.5% in Q4 and 38.2% for the year, reflecting effective cost controls.

• Q4 net loss was RMB 3.6 million, reversing a profit in the prior year; full-year net loss narrowed to RMB 53.6 million from RMB 102.5 million.

Financial highlights

• Q4 2024 total revenues were RMB 218.1 million, up 3% year-on-year; paid services revenues surged 96.6% to RMB 29.1 million, mainly from digital reading.

• Net advertising revenues were RMB 118.9 million, down from RMB 197 million year-on-year; e-commerce revenues fell 35.1%.

• Q4 gross profit increased 6.2% to RMB 97.0 million; gross margin rose to 44.5% from 43.1%.

• Q4 operating expenses rose 32% year-on-year to RMB 90.3 million, mainly due to higher sales and marketing for new services.

• Q4 operating income dropped to RMB 6.7 million from RMB 22.9 million; net loss attributable was RMB 3.6 million.

Outlook and guidance

• Q1 2025 total revenues forecasted between RMB 147 million and RMB 162 million; net advertising RMB 112–122 million; paid services RMB 35–40 million.

• Guidance reflects preliminary views and is subject to substantial macroeconomic uncertainties.