(NASDAQ: IQ) released its unaudited financial statements for the second quarter ended June 30, 2020. According to the financial report, iqiyi’s total revenue in the second quarter of 2020 will reach 7.4 billion yuan (about US $1 billion), a year-on-year increase of 4%. The total revenue and year-on-year growth rate conform to the company’s previous guidelines. By the end of the second quarter, iqiyi had 105 million subscribers.
“in the volatile macro environment, we still achieved quarterly performance growth, and total revenue increased by 4% year-on-year.” Gong Yu, founder, director and CEO of iqiyi, said: “the new crown epidemic in the first half of the year had a great impact on our business, resulting in abnormal user behavior, data volatility and unprecedented challenges. Nevertheless, relying on rich IP assets, excellent content and strong technology platform, the company has further consolidated its market leading position. Iqiyi original content is warmly welcomed by users, as well as the support and recognition of content partners and advertisers in the industry. We have the confidence and ability to deal with uncertainties and achieve a strong rebound. ”
“in the second quarter, our member services revenue increased by 19% year-on-year, and remains our largest pillar business. Through the launch of Star Diamond membership package, we have further optimized our membership system to meet the needs of different users. ” Wang Xiaodong, chief financial officer of iqiyi, said: “we continue to make strategic investment in original content to improve self-control ability, and at the same time invest more prudently in all aspects, which makes our loss rate narrow. As the epidemic is contained in China, its negative effects are gradually fading away, and we believe that we will achieve healthy and sustainable long-term growth. ”
in the second quarter of 2020, the revenue from member services was RMB 4 billion (about US $572.7 million), an increase of 19% compared with the same period in 2019. The growth was mainly driven by the increase in the number of subscription members and the company’s various operational measures to enhance the monetization of member business. Affected by the challenging macro-economic environment in China, iqiyi online has US $100 million). In this quarter, the company achieved a revenue of 860.6 million yuan (about US $121.8 million). Over the same period, other revenue reached 919.9 million yuan (about US $130.1 million).
in the second quarter of 2020, iqiyi’s revenue cost decreased by 2% compared with the same period in 2019. The operating loss was RMB 1.3 billion (US $181.4 million). The operating loss rate is 17% and 26% in the same period of 2019.
as of June 30, 2020, iqiyi held a total of RMB 9.5 billion (about US $1.3 billion) in cash, cash equivalents, restricted cash and short-term investments.
in the second quarter of 2020, iqiyi continued to launch high-quality content, and its total revenue and member income maintained a steady growth. Looking forward to the third quarter of 2020, iqiyi expects total revenue to be between 6.95 billion yuan (about 984.1 million US dollars) and 7.4 billion yuan (about 1 billion US dollars).