Phoenix New Media's Q1 2025: Contradictions in Advertising Revenue Strategies and Market Trends

Advertising revenue growth strategies, advertising revenue growth industries, advertising market trends and revenue strategies, international market opportunities are the key contradictions discussed in Phoenix New Media Limited's latest 2025Q1 earnings call.



Revenue Stability Amidst Challenges:
- Phoenix New Media Limited reported total revenues of CNY 155.2 million for Q1 2025, showing a 1.4% increase year-on-year from CNY 153 million.
- The stability in revenue is a result of successful content innovation and marketing efforts, despite challenges in the advertising business.

Advertising Revenue Decline and New Client Acquisition:
- Net advertising revenues decreased to CNY 120.5 million compared to CNY 138.6 million in the same period of last year.
- The decline was due to reduced spending from existing clients and increased caution in marketing investments. The company concentrated on attracting new clients to balance the loss.

Paid Services Revenue Surge:
- Paid services revenues surged to CNY 34.7 million, representing a 141% increase year-on-year from CNY 14.4 million.
- This significant growth was primarily driven by revenue generated from digital reading services offered through mini programs on third-party applications.

Operational Efficiency and Cost Management:
- Cost of revenues decreased by 15.1% to CNY 92.5 million from CNY 109 million in the same period of last year.
- The decrease in costs was achieved through strategic management of operational expenses, despite increased marketing efforts for digital reading services.