BRIEF: iQiyi’s revenue sags as company falls back into the red

Online video service provider iQiyi Inc. (IQ.US) said on Wednesday its revenue fell 11% year-on-year in the second quarter to 6.63 billion yuan ($923 million), as it slipped back into the red with a loss of 133.7 million yuan from a profit of 68.7 million yuan a year earlier.

Revenue from the company’s membership services fell 9% year-on-year to 4.09 billion yuan, while online advertising services revenue fell 13% to 1.27 billion yuan. Content distribution services revenue also fell 37% to 437 million yuan.

Separately, Reuters reported that iQiyi, which is traded in New York, has hired investment banks to make a second listing in Hong Kong to raise between $200 million and $300 million. It plans to file its Hong Kong listing application in the third quarter, and could complete the IPO before the 2026 Lunar New Year holiday, according to the report, citing knowledgeable sources.

iQiyi shares rose 0.9% to close at $2.30 on Wednesday. The stock is up 14% this year.

By Doug Young

To subscribe to Bamboo Works free weekly newsletter, click here