Bitauto Holdings Limited (NYSE:BITA) Q2 2019 Earnings Conference Call Transcript

Sep 05, 2019 • 08:00 am ET

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Bitauto Holdings Limited (NYSE:BITA) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Hello, and thank you for standing by for Bitauto's Second Quarter 2019 Earnings Conference Call. [Operator Instructions]

Now, I'll like to turn the meeting over to your host for today's conference.

Executive
Unidentified Speaker

Thank you. Welcome to Bitauto's second quarter 2019 earnings conference call. Speakers from the Company today are Mr. Andy Zhang, CEO, Mr. Xiaoke Liu, COO, and Mr. Ming Xu, CFO. After management's prepared remarks, Andy, Xiaoke and Ming will be available to answer your questions. In addition, Catherine Liu, CFO of Yixin, will be available to answer your questions related to Yixin.

Before we proceed, please note that discussions today will contain forward looking statements made under the safe harbor provisions of the US Private Securities and Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include but are not limited to those outlined in our public filings with the SEC, including registration statement on Form F-1. Bitauto does not undertake any obligation to update any forward-looking statement except as required under applicable law.

This call will include discussions of certain unaudited non-GAAP financial measures. Please refer to our earnings release, which was issued earlier today for reconciliations of these unaudited non-cash measures to the most directly comparable unaudited GAAP measures. As a reminder, this conference is being recorded. In addition, a live and archived webcast of the conference will be available on our website.

I'll now turn the call over to Andy Zhang, CEO of Bitauto.

Executive
Andy Xuan Zhang

Hello, everyone, and thank you for joining us for our second quarter 2019 earnings conference call. Q2 remained a challenging quarter for the auto industry as a whole. According to the Chinese Association of Automobile Manufacturers, China's total sales of new passenger vehicles decreased by approximately 14.3% year over year in the second quarter of 2019. In spite of the sustained weakness in passenger vehicle sales in China, Bitauto continued to achieve steady top-line growth in the second quarter, with total revenue reaching RMB2.79 billion, up 8.9% year-over-year, in particular, our transaction services business expanded market share amid the industry downturn, with revenue increase by 17.2% year over year in the second quarter to RMB1.49 billion and the transaction volume up 34% year-over-year 138,000 units.

Revenue from our advertising and the subscription business was RNB1.01 billion for the second quarter compared to RNB1.07 billion in the corresponding period in 2018, reflecting reduced marketing spending by our automaker and dealer customers. We are, however, pleased to see further improvement in mobile traffic as well as in quantity and the quality of our sales leads. Our continuous efforts to enhance content and the user experience starting with the rollout of our upgraded Bitauto media app in October last year continued to pay off.

Looking at our traffic, according to Questmobile, in July 2019, DAU for Bitauto auto media app increased by over 200% compared with that of the October 2018. In addition, the combined DAU