Chinese short video platform operator Kuaishou reported its slowest quarterly revenue growth in a year in the three months that ended in June, amounting to RMB 30.98 billion ($4.34 billion) in earnings with an 11.6% year-on-year growth rate. Net operating profit was RMB 3.9 billion in the second quarter, more than double from a year prior thanks to a 22.1% rise in advertising revenue, Kuaishou said on Tuesday. E-commerce, one of the company’s business avenues with high gross margins, saw GMV grow 15% from a year earlier to RMB 305.3 billion. On the company’s earnings call, CEO Cheng Yixiao recognized that both e-commerce platforms and merchants are facing the challenge of a short-term slowdown in domestic consumer demand after this year’s 618 shopping festival. By comparison, Kuaishou posted a nearly 39% increase in GMV in the same period last year. Kuaishou also provided an update on its Sora-like Kling model, with the company stating that the tool has generated over 10 million videos since it began beta testing in June. [Kuaishou]
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