iQiyi posts smaller loss in the 4th quarter

Online video giant iQiyi today announced a smaller loss in the fourth quarter year on year thanks to more paid users.

Nasdaq-listed iQiyi lost 1.5 billion yuan (US$237 million) in the fourth quarter, compared with a 2.5-billion-yuan loss a year ago. Revenue was 7.5 billion yuan, a 1 percent year-on-year decrease. 

In 2020, the company’s revenue reached 29.7 billion yuan, 2 percent higher from a year ago. By the end of 2020, iQiyi had almost 102 million paid subscribers.

Net dramas and exclusive programs helped the company keep its leading market position.

Internet movies and virtual reality programs are expected to become iiQiyi's new growth engine, said Gong Yu, iQiyi’s chief executive officer.

According to analysts, people have spent more money on digital entertainment in the past year because the pandemic has forced them to spend more time in their homes.

In the first quarter of 2021, iQiyi expects revenue to be a high as 7.53 billion yuan.