Phoenix New Media's Q4 2024: Contradictions in Revenue Growth Strategies and Market Dynamics

These are the key contradictions discussed in Phoenix New Media Limited's latest 2024Q4 earnings call, specifically including: Paid Services Revenue Growth Strategy, Advertising Revenue Growth Strategy, and Market Strategy:



Paid Services Revenue Increase:
- Phoenix New Media reported a 96.6% year-on-year increase in paid services revenues in Q4 2024, with revenues reaching RMB 29.1 million.
- This growth was primarily driven by revenue generated from new digital reading services offered through mini programs on third-party applications like Douyin, Kuaishou, and WeChat.

Advertising Revenue Performance:
- The company's net advertising revenues slightly decreased by 4% year-on-year in Q4 2024, reaching RMB 189 million.
- Despite a broader slowdown in the online advertising market, Phoenix New Media maintained its advertising base by focusing on industry-specific divisions and accelerating content innovation, which supported advertising revenue.

Operations and Cost Management:
- Phoenix New Media's gross margin improved to 44.5% in Q4 2024, up from 43.1% in the same period last year.
- The improvement in gross margin was attributed to increased revenue from paid services and effective cost management, particularly in containing the increase in operating expenses to 32% year-on-year.

Content and Event Success:
- The company's original content IP and events showcased strong performance, with notable achievements such as 250 million views for an in-depth commentary series on Weibo and 67 million views for a video IP journey.
- These successes were due to professionalism, speed, and depth in content coverage, particularly during major news events like the US election and South Korea's martial law crisis, enhancing the company's influence and reputation.