BRIEF: iQiyi’s profit drops as membership revenue declines
Video streaming platform iQiyi Inc. (IQ.US) announced on Thursday its revenue fell 10% year-on-year to 7.2 billion yuan ($1 billion) in third quarter, while its net profit dropped 52% to 229.4 million yuan.
iQiyi said a “lighter content slate” led to a 13% year-on-year drop in membership services revenue to 4.4 billion yuan during the period. At the same time, online advertising services revenue fell 20% year-on-year to 1.3 billion yuan due to a decrease in brand advertising business. Those declines were partly offset by a 52% year-on-year increase to 814 million yuan for content distribution revenue, which benefitted from increased barter transactions.
Chief Financial Officer Wang Jun said the company is aiming to enhance the appeal of its content by optimizing long-form video offerings and incorporating mini and short dramas. iQIYI’s stock fell 7.3% to $2.02 in New York on Thursday after the release of the report.
By Lee Shih Ta
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