Bitauto Holdings Limited (NYSE:BITA) Q3 2019 Earnings Conference Call - Final Transcript
Nov 26, 2019 • 07:00 am ET
Hello, and thank you for standing by for Bitauto's Third Quarter 2019 Earnings Conference Call. [Operator Instructions]
I would like to turn the meeting over to your host for today's conference.
Thank you. Welcome to Bitauto's third 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 know that the discussions today will contain forward-looking statements made under the Safe Harbor provisions of the U.S. 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.
The Bitauto does not undertake any obligation to update any forward-looking statements 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-GAAP measures to the most directly comparable unaudited GAAP measures.
As a reminder that this conference is being recorded. In addition, a live and archived webcast of the conference will be available on our website.
I will now turn the call over to Andy Zhang, CEO of Bitauto.
Andy Xuan Zhang
Hello, everyone, and thank you for joining us for our third quarter 2019 earnings conference call. The entire auto industry continued to face severe pressure as new passenger vehicle sales in China have decreased over the past 15 months, making automakers and dealers increasingly cautious in their marketing spending.
As a result of the unfavorable environment, Bitauto's total revenue was RMB2.54 billion for the third quarter of 2019. Our transaction services business continued to gain market share. Revenue increased by 3.9% year-over-year in the third quarter to RMB1.42 billion and transaction volume increased by approximately 4% year-over-year to 128,000 units. This is as China's total sales for new and used passenger vehicles decrease by 2% year-on-year, according to the data from China Association of Automobile Manufacturers and the China Automobile Dealers Association.
Looking at our advertising and subscription business, revenue from our advertising and the subscription business for third quarter was RMB923.6 million compared to RMB1.06 billion in the corresponding period in 2018, mainly attributable to the decrease in marketing spending by automakers and dealers caused by the continued decline in our new car sales.
Nonetheless, we have been pleased to see continuous improvements in our mobile traffic and the quality and quantity of our sales leads since we rolled out our upgraded Bitauto media app in the fourth quarter of last year. In terms of our mobile traffic according to QuestMobile in October 2019 DAU of the Bitauto media