Covid-19 and Competition Result in Revenue Drop for Pheonix New Media

Revenue decreased by 10.9% to $44.6 million from $51.8 million last year.
Benjamin WangNov 17,2020,23:48

Another bad day for a Chinese company with the word "Pheonix" in their name.

Phoenix New Media Ltd. (NYSE: FENG) reported decreased revenue Tuesday after the market closed due to the negative impact of the Covid-19 outbreak and heightened industry competition.

The content provider for internet, mobile, and TV said that for the latest three-month period, its revenue decreased by 10.9% to $44.6 million from $51.8 million last year.

The company reported a net loss from continuing operations of $100,000, compared to a net loss of $7.76 million last year.

“We remained steadfast in our commitment to providing a superior user experience, fortifying our content leadership, and augmenting our monetization capabilities in the third quarter of 2020,” said Shuang Liu, the chief executive officer of the company.

Looking ahead, the company said it expected revenue of between $50.7 million and $55.3 million for the fourth quarter. Liu added, “Looking ahead, we are convinced that our professional technical expertise, content leadership, and brand influence will continue to place us at the tip of the new media spear, allowing us to capture those segments of the market with promising growth potential as the world rebounds from the Covid-19 pandemic.”

Shares in Phoenix New Media fell 1.23% on Tuesday to $1.6 per share.

Topics:Phoenix New Media; China; U.S.