Phoenix New Media Limited (NYSE:FENG) Q2 2019 Earnings Conference Call - Final Transcript

Aug 12, 2019 • 09:00 pm ET

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Phoenix New Media Limited (NYSE:FENG) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to Phoenix New Media 2019 Second Quarter Earnings 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 advise you that this conference is being recorded today, Tuesday, the 13th of August, 2019.

I would now like to turn the conference over to your first speaker today, Ms. Qing Liu. Thank you. Please go ahead.

Executive
Qing Liu

Thank you operator. Welcome to Phoenix New Media's second quarter 2019 earnings conference call. I'm joined here by our Chief Executive Officer, Mr. Shuang Liu; and Chief Financial Officer, Ms. Betty Yip Ho. On today's call, management will provide us with a review of the half year results and then conduct a Q&A session. The second quarter 2019 financial result and webcast of this conference call are available on our website at ir.ifeng.com. A replay of the call will be available on the web site in a few hours.

Before we continue, I would like to refer you to our safe harbor statements in our earnings press release, which apply to this call as we will make forward-looking statements. Finally, please note that, unless otherwise stated, all figures mentioned during this conference call are in RMB.

With that, I would like to turn the call over to Mr. Shuang Liu, our CEO.

Executive
Shuang Liu

Thank you, Qing. Good morning and good evening, everyone. A macro environment full of uncertainty, we have held steady fast onto our commitment towards continuing goods and business evolution. Our AI powered content recommendation combined with seasoned editorial curation has constantly delivered highly engaging premium content as well as optimal user experience. Although our evolution as a New Media company is by no means lenient, we have been able to accomplish meaningful progress through the series of small steps.

During the quarter, we continuously worked towards refining our content production capabilities, augmenting our premium brand equity and expanding our innovative monetization systems. Furthermore, we expanded our new initiatives in lifestyle verticals and other areas to explore promising future business opportunities. As a result of our efforts, our total revenue reached 38.7% sequentially and exceeded our own guidance.

In regards to ifeng, key operating metrics of our flagship news app has steadily increased as a result of our integration of AI technology and editorial expertise. Such integration has effectively improved our content quality, optimize our distribution efficiency and increased our user stickiness. In addition, we enhanced ifeng's user interface by carefully refining its landing page design and feature page layout. Consequently, ifeng's user retention rate has improved gradually, starting from a steadily improved operating metrics and positive user feedback and leveraging our unique combination of advanced software algorithm with professional editorial adjustment, we're confident that not only our user traffic will flourish, but also our revenue will grow consistently over the next two years. Step by step, we're laying a solid foundation for diversifying our service offerings and monetizing of