View the latest market
In the evening news of November 5, Beijing time, Sina Technologies News, Sohu released its third quarter unaudited financial report as of September 30, 2018. The results showed that Sohu's total revenue in the third quarter was $460 million, down 11% from the same period in 2017 and 5% from the previous quarter, slightly higher than analysts'expectations. According to non-GAAP, the net loss attributed to Sohu was $32 million, and the net loss of ADS dilution per share was $0.81, less than analysts' expectations. The period is 1.59 dollars.
After the release of the financial report, Sohu Board Chairman and CEO Zhang Chaoyang, CFO Lu Yanfeng, Changyou CEO Chen Dewen, Changyou Chief Financial Officer Wang Yaobin and other company managers held a telephone conference to interpret the main points of the financial report and answer analysts'questions.
Eddie Leung, Bank of America Merrill Lynch analyst: Could you tell us how the synergies between information flow and Sogou's business are reflected? In addition, what is the performance and growth trend of the video payment member business? Are there any specific figures to share?
Zhang Chaoyang: Yes, Sohu's information flow and Sogou's do have business synergies, because Sogou browser and Sogou's search page all have relevant content to provide information flow. Sohu can provide these high-quality content through the company's internal system, rather than robotic crawling, which is a synergistic effect from the content point of view. In addition, from the point of view of user click rate information, there is synergy. Of course, we need to constantly improve this synergy, Sogou will also provide more information flow content.
We don't disclose the number of paid video users. Sohu Video provides a lot of original video content. Among them, variety shows mainly rely on advertising contributions, while TV plays mainly rely on paid subscription contributions. Many TV plays are exclusively broadcast by Sohu Video, which is conducive to driving the growth of paid subscribers and paying fees. The number of households is not growing fast but is very stable. At present, the company does not disclose the number of subscribers. We expect that the number of active users of Sohu Video App will continue to increase in the coming quarters, more short video content and information streams will be introduced into the content, and advertising sales will continue to grow in addition to pre-film advertising. Overall, we expect the revenue of video business to grow in the coming quarters.
Credit Suisse analyst Thomas Cheung: I have a question about the impact of macroeconomic environment and regulation on the company. We expect that the poor macroeconomic situation will continue for several quarters. What industries contribute most to the revenue of Sohu Portal and Sohu Video Advertising? What trends are expected next year? Another question is about small programs. Considering the high cost of user acquisition, what strategies does the company have for small programs?
Zhang Chaoyang: Under the macroeconomic downturn, the advertising revenue of Sohu Portal and Sohu Video Brands has been negatively affected, but the company has been through innovative marketing activities to ensure the revenue of brand advertising business, Sohu expects that advertising revenue from SMEs will also increase, because Small and medium-sized enterprises are more adaptable to changes in the market environment. In any case, China's market is very large and its consumption power will continue to exist. The number of small and medium-sized enterprises that the company serves is very large, so there will always be demand for advertising marketing. In addition, Sohu's share in the advertising market of small and medium-sized enterprises is still very small. We believe that we can overcome the impact of the macroeconomic downturn by improving the efficiency of implementation and innovative marketing activities, and achieve the growth of this part of business revenue. Sohu has no plans for minor procedures. (Tian Heng)
(continuously updated in...)
Waonews is a news media from China, with hundreds of translations, rolling updates China News, hoping to get the likes of foreign netizens