iQIYI reports Q2 2024 financial results

iQIYI, a leading provider of online entertainment services in China, reported on Thursday its earnings for the second quarter that ended June 30, 2024.

The Nasdaq-listed company reported revenue of 7.4 billion yuan ($1.0 billion), down five percent compared to the year-earlier period. Membership services revenue, the largest contributor, was 4.5 billion yuan, down 9 percent year over year.

The streaming service raked in 1.5 billion yuan through online advertising services, grossed 698.2 million yuan via content distribution and brought in 783.9 million yuan through other revenues, the report said.

The company's non-GAAP income for the second quarter reached 501.4 million yuan, achieving a seven-percent margin. According to the report, the domestic media giant has achieved a positive operating cash flow for the ninth consecutive quarter.

The report also highlighted the company's solid overseas performance as its total revenues and membership revenue grew annually and sequentially, with a 30 percent annual rise in membership revenue from top Chinese-language dramas.

Notwithstanding fierce competition within the long-form video market in the second quarter, iQIYI contributed a slew of smashing hits.

For example, its mini-series To the Wonder, released in May, has sparked immense interest in the Altay region of Xinjiang and catapulted it to a hot tourist destination. Its original reality show Become a Farmer continued to reap critical acclaim and phenomenal popularity in the second season.

The last quarter also saw "Light on Theater," iQIYI's flagship program known for its nail-biting suspense dramas, consolidate the streamer's dominance in this genre with premium titles such as Lost in the Shadows and Tell No One.

"We believe the vibrant competition within the long-form video sector in the second quarter is constructive for the industry, enhancing its appeal over other entertainment formats," commented Gong Yu, founder and chief executive officer of iQIYI.

"The key to long-term success hinges on consistently delivering premium content that balances artistic merits and commercial benefits, to which we remain committed," Gong added.

"We have prudently managed our financial resources to optimize the financial leverage of the balance sheet, enhance the sustainability of our business, and ultimately deliver value to all stakeholders," remarked iQIYI's chief financial officer Wang Jun.