iQIYI Announces Fourth Quarter and Fiscal Year 2024 Financial Results

Core Viewpoint - iQIYI, Inc. reported a decline in revenues and net income for the fourth quarter and fiscal year 2024, despite a strong performance in the drama market and growth in mini-dramas, indicating challenges in the online entertainment sector in China. Group 1: Fourth Quarter 2024 Highlights - Total revenues for Q4 2024 were RMB6.61 billion (US $906.0 million), a decrease of 14% year over year [7][10] - Membership services revenue was RMB4.10 billion (US$ 562.1 million), down 15% year over year, attributed to a lighter content slate [10][23] - Operating income was RMB285.4 million (US $39.1 million), with an operating income margin of 4%, compared to 10% in Q4 2023 [7][14] - Net loss attributable to iQIYI was RMB189.4 million (US$ 25.9 million), contrasting with a net income of RMB466.2 million in the same period of 2023 [7][18] Group 2: Fiscal Year 2024 Highlights - Total revenues for the fiscal year 2024 were RMB29.23 billion (US $4.00 billion), an 8% decrease from 2023 [7][23] - Membership services revenue for the year was RMB17.76 billion (US$ 2.43 billion), down 13% from 2023 [23] - Operating income for the year was RMB1.81 billion (US $248.1 million), with an operating income margin of 6%, compared to 9% in 2023 [7][26] - Net income attributable to iQIYI was RMB764.1 million (US$ 104.7 million), a 60% decrease from 2023 [27][28] Group 3: Strategic Developments - iQIYI launched a series of blockbusters since late November 2024, which helped to reinforce its leading position in the total drama market share in Q4 2024 [4] - The company expanded its mini-drama portfolio to over ten thousand titles and optimized its ad-placement system to enhance monetization [5] - The management emphasized a focus on discipline and efficiency, leading to sequential growth in operating profit for the fourth quarter [5]