China’s state broadcaster takes small stake in iQIYI as revenue falls

The Nasdaq-listed company eyes “high-quality growth” in 2023, aiming for simultaneous growth in operating profit and revenue. Credit: 123RF

China’s state broadcaster, China Central Television (CCTV), has taken a small stake in iQIYI as the video-streaming platform grapples with declining revenue. Beijing iQIYI Technology Co. added CCTV Integrated Media Development Co. as a shareholder with a 0.9999% stake, according to corporate filings. The move reduced Chairman Geng Xiaohua’s ownership from 100% to 99.0001%. CCTV Integrated Media Development Co. is majority-owned by China Media Group, the state entity that oversees CCTV. The investment comes as iQIYI struggles with shrinking revenue. The company reported a 14% drop in fourth-quarter revenue to RMB 6.61 billion ($920 million), swinging to a non-GAAP net loss of RMB 58.8 million ($8.1 million), compared with a RMB 680 million ($93.7 million) profit a year earlier. Full-year revenue fell 8% to RMB 29.23 billion ($4.03 billion), while non-GAAP net income declined to RMB 1.51 billion ($210 million) from RMB 2.84 billion ($390 million) in 2023. [iThome, in Chinese]