Phoenix New Media (NYSE:FENG) used its latest earnings call to highlight investments in in-depth reporting and original content while outlining a mixed advertising backdrop and growing contribution from paid services. Executives said the company is emphasizing “professional, in-depth, and credible journalism” as a differentiator in an information-saturated environment, alongside product and format upgrades intended to improve integration between content and distribution.
Strategy: building influence through original reporting and major coverage
Chief Executive Officer Yusheng Sun said the company continued to increase inputs in in-depth reporting, professional commentary, and major thematic coverage to enhance the quality and influence of core columns and flagship products. Management also said it optimized key events and branded initiatives to promote deeper integration between content and product formats, while keeping a focus on long-term strategy and disciplined transformation.
The company also highlighted reporting on social issues, including an in-depth report on “Regent International in Hangzhou,” described as a building associated with mass influencer leasing and live-streaming e-commerce. Management said the report received more than 100,000 views and prompted an official government response.
Content performance and distribution: short video growth and AI-assisted operations
Executives said human-centered, deeply reported stories remain a core foundation for brand strength and audience engagement. As examples, management cited an episode of “The Journey” about a father who joined an online chat group to support struggling young people after his son’s suicide; the company said the episode garnered 120 million views. Another episode covering public figure Cai Lei’s battle with ALS reached 145 million views, according to management.
On distribution, the company said its presence across major platforms continued to expand:
- Douyin: average likes per post increased 54% quarter-over-quarter, and total followers grew to 18.9 million.
- WeChat video account: followers grew to more than 6 million.
- App: AI applications support content aggregation and trending-topic operations; interaction volume increased by more than 10% and average time spent per user rose 8% quarter-over-quarter.
Management also noted cooperation within Huawei’s HarmonyOS ecosystem, describing it as providing a more stable traffic entry point and deeper technological collaboration.
Financial results: revenue up slightly as paid services grew
Chief Financial Officer Edward Lu reported first quarter 2025 total revenue of RMB 222.0 million, a 1.9% increase from RMB 218.1 million a year earlier. Advertising declined year-over-year, while paid services rose sharply.
- Net advertising revenue: RMB 181.1 million, down from RMB 189.0 million in the prior-year period.
- Paid services revenue: RMB 41.2 million, up 41.6% from RMB 29.1 million, driven primarily by digital reading services delivered through mini programs on third-party applications.
Cost of revenue decreased 18.6% year-over-year to RMB 98.6 million. The company reported gross margin of 35.6% for the quarter, compared with 44.5% in the same period last year.
Total operating expenses were RMB 99.2 million, up 9.9% from RMB 90.3 million, which management attributed primarily to higher sales and marketing expenses related to digital reading services. Income from operations increased to RMB 24.5 million from RMB 6.7 million a year earlier. Net income attributable to Phoenix New Media was RMB 45.0 million, compared with a net loss attributable to the company of RMB 3.6 million in the prior-year period.
On liquidity, management said that as of December 31, 2025, cash and cash equivalents, term deposits, short-term investments, and restricted cash totaled RMB 1.02 billion (about $135.6 million).
Advertising market commentary: budget pressure and category shifts
During Q&A, management addressed challenges and the advertising outlook for 2026. The company said that in the fourth quarter, advertising budgets declined among major internet platforms, while the automotive and liquor sectors were “relatively weak.” However, it said it achieved growth in consumer categories such as personal care, tourism and entertainment, and home appliances, which partially offset declines in more traditional sectors.
Management said near-term challenges persist and that it intends to optimize its client mix and explore new growth drivers. Executives also described internationalization as a differentiator, citing the “Light of Chinese” event launched alongside the World Chinese Entrepreneurs Convention as strengthening connections with overseas business communities and enhancing brand influence and collaboration potential.
The company also said demand for short-form video continues to grow, and that it plans to enhance content differentiation and conversion capabilities through its social media metrics. Management added that AI technologies are being increasingly applied to content production and data analytics to improve marketing efficiency and will remain a focus.
Looking ahead, management said it plans to prioritize sectors with stronger budget potential, including home appliances, transportation, and daily consumer goods, and align with themes such as technological innovation and green consumption.
Outlook: first quarter 2026 guidance
For the first quarter of 2026, Phoenix New Media forecast total revenue of RMB 160 million to RMB 175 million. The company projected net advertising revenue of RMB 111.2 million to RMB 121.2 million. For paid services revenue, management projected a range of RMB 48.8 million to RMB 33.8 million, noting that the forecast reflects its current and preliminary view and is subject to change and uncertainties.
About Phoenix New Media (NYSE:FENG)
Phoenix New Media Inc is a leading Chinese new media company that provides online news and information services through its flagship portal, ifeng.com, as well as a suite of mobile applications and video platforms. The company offers a wide array of multimedia content, including live streaming news, on-demand video, audio programming and article publishing across topics such as finance, technology, entertainment, lifestyle and sports. In addition to content distribution, Phoenix New Media generates revenue through digital advertising and subscription services.
Formed as a spin-off of its parent Nanfang Media Group’s overseas broadcasting business, Phoenix New Media was established to capitalize on the rapid growth of Internet and mobile consumption in China.
