IQ: Better Subscription ARPU Driving Better 3Q20 Performance; Content Supply and Content Views Continue To Improve In October
IQ will report 3Q20 results on November 16th after the markets close followed by a 7pm EST conference call. Based on our data and calculations, we believe IQ’s total revenue in 3Q20 is likely to be higher than consensus expectation at RMB7,195M and our model at RMB7,120M. While the new number of subscribing members showed limited increase due to the short summer holidays, the ARPU from members is likely to be better on a Q/Q basis as pay-per-view model adoption on IQ exclusive and in-house content titles as well as member fee increases. We believe the new subscription business is likely to keep improving in 4Q20 due to more content and higher ARPU.