IQIYI Inc (NASDAQ:IQ) Q3 2018 Earnings Conference Call - Final Transcript
Oct 30, 2018 • 08:00 pm ET
Ladies and gentlemen, thank you for standing by and welcome to the IQIYI's Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. (Operator Instructions) I must advice you that this conference is being recorded today, Wednesday the 31st of October 2018.
I will now like to hand the conference over to your first speaker today Ms. Dahlia Wei, Investor Relations Director for IQIYI. Thank you. Please go ahead.
Thank you, operator. Hello, everyone and thank you all for joining IQIYI's third quarter 2018 earnings conference call. The company's results were released earlier today and are available on the company's investor relations website at ir.iqiyi.com.
On the call today are Dr. Yu Gong, our Founder, Director and Chief Executive Officer; and Mr. Xiaodong Wang, our Chief Financial Officer. Mr. Gong -- after Gong will give a brief overview of the company's business operations and highlights, followed by Xiaodong, who will go through the financials and guidance. After their prepared remarks, we will hold a Q&A session.
(Forward-Looking Cautionary Statements)
With that, I will now turn the call over to Dr. Gong. Please go ahead.
Hello, everyone and then thank you for joining us for the third quarter earning calls. We continued to deliver solid results during the third quarter. Total revenue were RMB6.9 billion, up 48% year-over-year. The performance was primarily driven by robust growth in the number of subscribers, which reached RMB80.7 million at the end of September, representing a record high of quality net addition of RMB13.5 million.
This quarter we also observed further enhanced user reach in engagement level and the time spend as summer time is the peak season for us during the year. We addressed number one across -- a number of operating metrics among our peers, according to independent data tracking by major research firms. This again reaffirms our industry leading position and competitive stress.
We will start this quarter's business review with Membership services, which has become our biggest revenue contributor. Membership revenue was RMB2.9 billion, representing 78% year-over-year growth. Premium content continues to be the most important driver for membership growth. We released the most popular drama of this year in China, Story of Yanxi Palace during the quarter. The mega-hit costume drama that we originally produced has had several records in the entertainment industry in China.
It harvested over 20 billion total video views and has become the single most successful title in terms of subscriber conversions in our history. Along with a variety of other premium content, it greatly boosted our subscriber numbers. Our joint membership program with JD.com continue to progress nicely in the third quarter, attracting a steady inflow of annual subscribers, who wish to enjoy benefits from both companies. In additions with JD.com, we continue to pursue opportunities to develop other across industrial partnerships, including telecom areas and commercial packs.
During the third quarter, we established a new cooperation with a number