Content distribution revenue declined by 4% in Q2 2019 but this was due to the delay of certain content launches in the quarter. The weakness in advertising is expected to continue, taking a toll on the results. The economic environment in China is also likely to impact the quarterly results.
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In the second quarter of 2019, iQiyi reported a 15% increase in revenues to RMB 7.1 billion ($1 billion). Loss per share came in at RMB 3.22 ($0.49). Membership revenues rose 38% while online advertising services revenue fell 16%.
For the third quarter of 2019, iQiyi expects revenue to be between RMB 7.21 billion ($1.03 billion) and RMB 7.63 billion ($1.09 billion), representing a 4% to 10% growth from the third quarter of 2018.
Shares of iQiyi have gained 21% year-to-date and 9% in the past one month. The stock was up 1% in afternoon hours on Monday.