BRIEF: iQiyi’s profit plunges amid fierce competition
Video streaming platform iQiyi Inc. (IQ.US), majority-owned by Baidu, reported on Thursday its profit plunged 80% in the second quarter to 68.7 million yuan ($9.6 million) from 365 million yuan in the same period last year, as it faced heightened competition in China’s crowded video streaming market.
The company’s revenue also declined 5% year-on-year to 7.4 billion yuan, driven by a 9% drop in membership services to 4.5 billion yuan. IQiyi stopped disclosing its subscriber numbers earlier this year, and the declining revenue suggests the platform is struggling to retain and monetize its user base.
On a more positive note, the company’s revenue from content distribution grew by 2% to 698 million yuan. Its other revenues, which include talent agency services and third-party partnerships, grew by 16% to 784 million yuan. The company’s shares fell nearly 16% to close at $2.60 on Thursday.
Reporting by Teri Yu
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