BRIEF: iQiyi’s revenue falls as advertising, membership services slump

Online video platform iQiyi Inc. (IQ.US) on Wednesday reported its revenue slumped 9% year-on-year in the first quarter, dragged down by declines for its core membership and advertising services.

The company’s revenue fell to 7.19 billion yuan ($997 million) in the first three months of the year from 7.93 billion yuan a year earlier, according to the report. Revenue from membership services fell 8% year-on-year to 4.4 billion yuan, while online advertising revenue dropped 10% to 1.33 billion yuan. Content distribution revenue plunged 32% to 629 million yuan.

The company’s profit also dropped sharply, down 72% in the quarter to 182 million yuan from 655 million yuan a year earlier.

IQiyi shares fell 8% on Wednesday after the announcement. The stock is down 15% this year.

By Doug Young

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