On the 21st, iQiyi released its unaudited third quarter financial report as of September 30th. The company achieved a total revenue of 8 billion yuan, a year-on-year increase of 7%, and operating profit (non GAAP) of 895 million yuan, a year-on-year increase of 71%.
From a business perspective, in the third quarter, iQiyi's member service revenue was 5 billion yuan, a year-on-year increase of 19%. This is also the second time in iQiyi's history that its member service revenue has exceeded 5 billion yuan. The growth of membership service revenue is mainly attributed to the improvement of monthly average single member income (ARM) and the improvement of refined operations, which have improved liquidity.
In the third quarter, iQiyi's monthly average single member income (ARM) reached 15.54 yuan, a year-on-year increase of 12%, setting a new historical high. During the same period, the revenue of online advertising services was 1.7 billion yuan, a year-on-year increase of 34%. Brand advertising and effect advertising both achieved year-on-year and month on month growth. Content distribution and other revenue achieved revenue of 526 million yuan and 803 million yuan, respectively.
IQiyi Chief Financial Officer Wang Jun stated, "We continue to benefit from operating leverage. This quarter, GAAP and Non GAAP (Non GAAP) The operating profit increased by 141% and 71% year-on-year, respectively. The operating profit margins of GAAP and Non GAAP have further improved, expanding from 4% and 7% in the same period last year to 9% and 11% in this quarter, respectively. The operating cash flow and free cash flow reached 831 million yuan and 826 million yuan respectively