Overview

* iQIYI Q2 revenue falls 11% yr/yr to RMB6.63 bln ($925.3 mln)

* Company reports operating loss of RMB46.2 mln, reversing last year's profit

* Net loss attributable to iQIYI is RMB133.7 mln, compared to net income last year

Result Drivers

* LIGHTER CONTENT SLATE - Membership services revenue fell 9% yr/yr due to a lighter content slate, according to CEO Yu Gong

* ADVERTISING REVENUE DROP - Online advertising services revenue decreased 13% yr/yr as advertisers adjusted strategies amid macroeconomic pressures

* CONTENT DISTRIBUTION DECLINE - Content distribution revenue fell 37% yr/yr, primarily due to a decrease in barter and cash transactions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 RMB 6.63

Revenue bln

Q2 RMB

Adjusted 14.70

Net mln

Income

Q2 Net -RMB

Income 133.70

mln

Q2 RMB

Adjusted 58.70

Operatin mln

g Income

Q2 1.0%

Adjusted

Operatin

g Margin

Q2 -RMB

Operatin 46.20

g Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the online services peer group is "buy"

* Wall Street's median 12-month price target for iQIYI Inc ( IQ ) is $2.00, about 14% below its August 19 closing price of $2.28

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)