Phoenix New Media (NYSE:FENG) said it improved year-over-year performance in the first quarter of 2026, citing stronger content execution around major news events, growth in paid services and a narrower operating loss.
Chief Executive Officer Yusheng Sun said the company remained focused on strengthening its core capabilities, using major domestic and international events to improve brand influence and user engagement. His remarks were translated on the call by Muzi Guo, the company’s investor relations manager.
Major Events Drive Audience Engagement
Chief Financial Officer Edward Lu said the company’s first-quarter content performance was supported by coverage of major domestic and international events. He highlighted Phoenix New Media’s reporting on the U.S.-Israel-Iran conflict, saying the company delivered real-time updates, live broadcasts, commentary and feature stories “with both speed and accuracy.”
Lu said the company’s timeline products and multilingual reporting system were supported by fact-checking and on-the-ground reporting. He also pointed to diary reports from Tehran and an exclusive interview with Chinese seafarers stranded in the Strait of Hormuz as examples of the company’s international reporting capabilities.
“Overall, what mattered most was not any single viral piece, but the entire process,” Lu said. “It proved that our international news reporting system is now at industry leading level of maturity and responsiveness.”
The company also cited its coverage of China’s Two Sessions, where it combined interviews with delegates and issue-based content planning. Lu said several short videos on public policy topics appeared on trending lists, reflecting the company’s ability to balance mainstream reporting with content aimed at broader audiences.
Sports, Video and Original Content Show Momentum
Lu said sports coverage was a strong vertical during the quarter, particularly around the Milan Winter Olympics and other tournaments. He said total exposure for the company’s Winter Olympics coverage exceeded 250 million.
The company also highlighted its coverage of the Abu Dhabi Masters, which Lu said was distributed across Phoenix TV, PC, the company’s mobile app and third-party video platforms. That coverage attracted more than 1.2 million live viewers, with three topics entering six trending lists and generating more than 15 million total reads.
Lu said original, human-centered content remained a competitive advantage. He cited the company’s “Journey Series,” saying one recent episode reached more than 80 million views and prompted follow-up reports from major national media outlets.
Technology Sector Helps Commercialization
On the commercial side, Lu said Phoenix New Media made progress through participation in major international exhibitions, including CES, MWC and AWE. He said client numbers and revenue in the technology sector grew substantially during the quarter.
Lu said that performance validated the company’s business model of combining international exhibitions, premium content and monetization in the technology sector, adding that the experience could be applied to other verticals.
The company also reported stronger engagement in its mobile app, driven by major news events. Lu said Phoenix New Media improved content structure and distribution and added new sections, including “On the Scene” and “World Affairs,” to help users find content and improve retention.
Quarterly Results and Balance Sheet
Lu said total revenues increased 21.6% year over year in the first quarter. On the call, he stated total revenues were CNY 108.8 million and also reported net advertising revenues of CNY 125.3 million and paid services revenues of CNY 63.5 million.
Net advertising revenue increased 4% from CNY 120.5 million in the prior-year period, while paid services revenue increased 83% from CNY 34.7 million. Lu said the growth in paid services was primarily driven by digital reading services offered through mini programs on third-party applications.
Cost of revenues decreased 5.1% year over year to CNY 87.8 million from CNY 92.5 million. Gross margin improved to 53.5%, compared with 40.4% in the same quarter last year.
Total operating expenses rose 29.5% to CNY 130.9 million from CNY 101.1 million. Lu attributed the increase primarily to higher sales and marketing expenses tied to digital reading services.
Loss from operations narrowed to CNY 29.9 million from CNY 38.4 million a year earlier. Net loss attributable to ifeng was CNY 16.8 million, compared with CNY 29.7 million in the prior-year period.
As of March 31, 2026, Phoenix New Media reported cash and cash equivalents, term deposits, short-term investments and restricted cash totaling CNY 955.8 million, or approximately $138.6 million.
Second-Quarter Outlook and Advertising Trends
For the second quarter of 2026, Phoenix New Media forecast total revenues between CNY 195.7 million and CNY 210.7 million. The company expects net advertising revenues between CNY 141.8 million and CNY 151.8 million, and paid services revenues between CNY 53.9 million and CNY 58.9 million.
During the question-and-answer session, Alice Tang of First Shanghai asked about advertising revenue trends and the company’s near- to medium-term outlook.
Lu said the company faced budget adjustment pressure in some categories during the first quarter, but several consumer and service sectors delivered growth that helped offset the pressure. He cited liquor, internet services, automotive, home appliances, finance and retail as areas that grew year over year.
Lu also said Phoenix New Media saw strong momentum in emerging artificial intelligence application sectors, and that its deeper involvement in international sports events and exhibitions supported progress in international marketing.
“We are seeing a clear shift in brand marketing,” Lu said. “It’s moving away from just chasing traffic toward building deeper emotional connections with users and creating lasting brand value.”
Looking ahead, Lu said macroeconomic headwinds and budget pressure may continue, but the company plans to optimize its client mix, focus on more resilient growth areas and continue pursuing internationalization. He said Phoenix New Media expects to make “steady progress through 2026.”
About Phoenix New Media (NYSE:FENG)
Phoenix New Media Inc is a leading Chinese new media company that provides online news and information services through its flagship portal, ifeng.com, as well as a suite of mobile applications and video platforms. The company offers a wide array of multimedia content, including live streaming news, on-demand video, audio programming and article publishing across topics such as finance, technology, entertainment, lifestyle and sports. In addition to content distribution, Phoenix New Media generates revenue through digital advertising and subscription services.
Formed as a spin-off of its parent Nanfang Media Group’s overseas broadcasting business, Phoenix New Media was established to capitalize on the rapid growth of Internet and mobile consumption in China.
