Shares of iQiyi Inc. (IQ) tumbled 5.38% in pre-market trading on Wednesday following the release of its first-quarter 2025 financial results, which showed declines in revenue and profitability compared to the same period last year.
The Chinese online entertainment video service provider reported total revenues of RMB7.19 billion (US$990.3 million) for Q1 2025, representing a 9% decrease year-over-year. This decline was primarily attributed to lower membership services revenue, which fell 8% due to a lighter content slate compared to the same period last year.
iQiyi's profitability also took a hit, with net income attributable to iQiyi dropping to RMB182.1 million (US$25.1 million) from RMB655.3 million in Q1 2024. Operating income fell to RMB341.9 million (US$47.1 million) with an operating income margin of 5%, compared to operating income of RMB944.8 million and an operating income margin of 12% in the same period in 2024. The company's adjusted earnings per ADS came in at RMB0.31 (US$0.04), down from RMB0.87 in the first quarter of 2024.
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