Sohu executives interpret the two quarter earnings: video will be profitable next year

Sohu executives interpret the two quarter earnings: video will be profitable next year

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Sina Technology News Beijing time in the evening of July 30th news, Sohu (NASDAQ: SOHU) today announced the June 30, 2018 unaudited second quarter earnings of the second quarter of 2018. The report showed Sohu's second quarter revenue of $486 million, up 5% from a year earlier, and a net loss of $49 million for Sohu's non US general accounting standards (non-GAAP), and a net loss of $72 million in the same period last year.

After the report, the chairman of the Sohu board of directors and CEO Zhang Zhaoyang, CFO Lv Yanfeng, CEO Chen Dewen and Wang Yaobin, the chief financial officer, held a telephone meeting to read the main points of the financial report and answer the questions of the analysts.

Credit Suisse analyst Thomas Cheung: first question, what is the competitive situation of the information flow news industry? What is the growth trend in the second half of the year and next year? The second question is, what is the original content strategy of the company? What is the difference between competition and competition?

Zhang Chaoyang: Sohu News App is the carrier of the company's information flow business. Its content can ensure that the company can take the lead in the differential competition. With the increase of information flow advertising inventory, we expect the growth of this part of the business will continue, especially from SMEs sales contribution will continue to grow. In addition, the company has been pursuing differentiated competition in the original video business, and the cost of original video production will continue to improve.

Eddie Leung: how does the company look at the cost of video input in the original video industry? Because the company's competitors are also increasing the production of original video, will this result in the entire original video industry production costs increase?

Zhang Zhaoyang: Yes, the competitors have increased the input of original video production, but we believe that the Sohu has found a unique path to the future. The company makes original video, the cost of the play will be reduced, and a series of 20 episodes is now made before the team production level is guaranteed. The cost is only $two million to $three million. Our platforms can become channels for publicity and promotion of these dramas, bringing traffic and advertising. High cost of production does not necessarily bring market recognition and success.

CICC analyst Natalie Wu: what is the current loss rate of Sohu video? Is there a shortage of cash in the company? In addition, how many monthly active users and daily active users of Sohu news? How is the growth?

Zhang Zhaoyang: the Sohu video lost $35 million in the two quarter, a loss of more than $100 million in the two quarter last year, and a loss of $48 million in the first quarter of this year, so you can see the loss falling. We have enough cash, and we are in the mastery of everything, believing that the three quarter's loss is going to fall further, and the two or the three quarter will be profitable. For the sake of competition, we will not announce the number of active users and active users on the moon, but the last two quarters have maintained healthy growth. The number of active users on the day has increased by 40%-50%, and the number of active users at the end of last year is at a low point. (Tian Heng)

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