Fang Holdings Limited (NYSE:SFUN) Q2 2019 Earnings Conference Call Transcript

Aug 30, 2019 • 08:00 am ET

Previous

Fang Holdings Limited (NYSE:SFUN) Q2 2019 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Q2 2019 Fang Holdings Limited Earnings Conference Call. My name is Albert and I will be your operator for today. [Operator Instructions] Later, we will conduct a question-and-answer session. [Operator Instructions].

I would now like to turn the call over to Ms. Jessie Yang. Please go ahead.

Executive
Jessie Yang

Thank you, operator. Hello, everyone, and welcome to Fang Holdings Second Quarter 2019 Earnings Conference Call. Joining us today to discuss Fang's results are our CEO, Mr. Jian Liu; and acting CFO, Mr. Zijin Li. After the prepared remarks, our management will answer your questions.

Before we get started, I would like to remind you that during the course of this conference call, we may make forward-looking statements, statements that are not historical facts, including statements about our beliefs and expectations. Forward-looking statements involve inherent risk and uncertainty. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Fang assumes no obligation to update the forward-looking statements in this conference call and elsewhere. Potential risks and uncertainties include, but are not limited to those outlined in our public filings with the SEC, including our Form 20-F.

Now I would like to walk you through our second quarter 2019 financials, after which Mr. Liu and Mr. Li will answer your questions for the Q&A session.

Fang reported total revenues of $67.6 million in the second quarter of 2019, an increase of 6.8% from $63.3 million in the corresponding period of 2018, mainly due to the increase in revenues from marketing services. Revenue from marketing services was $32.5 million in the second quarter of 2019, an increase of 19.3% from $27.2 million in the corresponding period of 2018, driven by Fang's efforts in customer development.

Revenue from listing services was $19.2 million in the second quarter of 2019, a decrease of 26% from $26 million in the corresponding period of 2018, mainly due to the decrease of paying members in listing services. Revenue from leads generation services was $10.8 million in the second quarter of 2019, an increase of 290.2% from $2.8 million in the corresponding period of 2018, driven by the increased effectiveness of the service and customer development. Revenue from financial services was $2.6 million in the second quarter of 2019, a decrease of 3.2% from $2.7 million in the corresponding period of 2018.

Cost of revenue was $8.3 million in the second quarter of 2019, compared to $8.4 million in the corresponding period of 2018. Operating expenses were $30.3 million in the second quarter of 2019, a decrease of 53% from $64.5 million in the corresponding period of 2018, mainly due to the decrease in bad debt and staff costs.

Selling expenses were $16.1 million in the second quarter of 2019, an increase of 12.5% from $14.3 million in the corresponding period of 2018. G&A expenses were $15.7 million in the second quarter of 2019, a decrease of 69.1% from $50.7 million