iQIYI sees strong subscriber, revenue and profit growth

Leading Chinese streaming provider iQIYI has posted strong year-on-year revenue and subscriber growth in its Q1 numbers.

The average daily number total subscribers for the quarter was 128.9 million, compared to 101.4 million for the same period in 2022 and 111.6 million for the fourth quarter in 2022. Excluding trial memberships for the quarter, the average daily sub base was 128.1 million, compared to 100.8 million for the same period in 2022 and 110.9 million for the fourth quarter in 2022.

While average revenue per subscriber declined slightly, overall revenues shot up by 15% year-on-year to reach RMB8.3 billion (US$1.2 billion).

Reported operating income shot up even more dramatically. iQIYI posted operating income of RMB858.6 million (US$125 million), representing a margin of 10%, up from RMB93.4 million, with a raging of 1% for the same period last year.

Membership services revenue increased at a higher rate than overall revenue. iQIYI posted membership services revenue of RMB5.5 billion, up 24%. It attributed the strong showing to growth in subscribers thanks to its strong content line-up.

Advertising revenue was also up, albeit by a smaller proportion. Ad sales for the quarter were RMB1.4 billion, up 5%.

Content distribution revenue was up 16% to RMB727.3 million, boosted by price increases, while other revenues dropped 20% to RMB670.5 million, driven down by adjustments in certain business models and softness in the online gaming business.

“We kicked off the year with an exceptional first quarter. iQIYI originals once again demonstrated its power, driving our financial performance and market share to new highs, and expanding our subscriber base by over 17 million net additions. This demonstrated the success of our high-quality growth strategy,” said Yu Gong, founder, director, and CEO of iQIYI.

“This was another record-setting quarter for us. Both total revenues and membership services revenue reached all-time high. Meanwhile, our operating income continued to expand for the sixth consecutive quarter and our operating cash flow also expanded for the fourth consecutive quarter. We have improved profitability, cash flow and balance sheet, and we aim to create more value for our stakeholders,” said Jun Wang, chief financial officer.