Ladies and gentlemen, thank you for standing by, and good evening. Thank you for joining Sohu's First Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a Question-and-Answer session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the conference over to your host for today’s conference call, Mr. Eric Yuan, Investor Relations Director of Sohu. Please go ahead, sir.

Thanks, operator. Thank you for joining us today to discuss Sohu's first quarter 2019 results. On the call are Chairman and CEO, Dr. Charles Zhang; CFO, Joanna Lv. Also with us today are Changyou's CEO, Dewen Chen; and CFO, Yaobin Wang; and Sogou's CEO, Xiaochuan Wang; and CFO, Joe Zhou. Before management begins their prepared remarks, I would like to remind you of the company's Safe Harbor statement in connection with today's conference call. Except for the historical information contained herein, the matters discussed in this conference call are forward-looking statements. These statements are based on current plans, estimates and projections. And therefore, you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those containing any forward-looking statements. For many information about the potential risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission, including its registration statements and most recent annual report on Form 20-F. With that, I will now turn the call over to Dr. Charles Zhang. Charles, please proceed.

Thanks. Thank you, everyone for joining our call. In the first quarter, we delivered better-than-expected revenue, mainly driven by the solid performance of our search and game businesses. Sohu Media continued to make progress upgrading its products and content on our platform and we explored new ways to diversify revenue sources. Sohu Video consistently offered appealing self-developed dramas and its financial loss kept narrowing due to strict cost controls. And for Sogou, the user base of its mobile search and keyboard products further expanded while its core search revenue grew faster than the industry. In the first quarter, Changyou's revenue and profit exceeded guidance as the TLBB PC game performed very well during the Chinese New Year holidays. Before I go into more detail about our key businesses, let me summarize our financial results for the first quarter. First quarter total revenues, $431 million, down 5% year-over-year and 11% quarter-over-quarter. On a constant currency basis, total revenues would have been $26 million higher than our reported revenues, so up 1% year-over-year. Net brand advertising revenues, $43 million, down 24% year-over-year and 25% quarter-over-quarter. Search and search related advertising revenues, $234 million, up 6% year-over-year and down 15% quarter-over-quarter. Online game revenues, $99 million, down 6% year-over-year and up 5% quarter-over-quarter. Excluding certain non-cash impairment charges, the operating loss for Sohu Video was $27 million compared with a loss of $48 million in the first quarter of 2018. GAAP net loss attributable to Sohu.com Limited was $57 million, compared with a net loss of $93 million in the first quarter of 2018. Non-GAAP net loss attributable to Sohu.com Limited was $55 million. Excluding the effect of the impairment charge, net -- tax effects, non-GAAP net loss attributable to Sohu.com Limited was $48 million, which compared with a net loss of $97…

Thank you, Charles. I will walk you through the key financials. [Technical Difficulty] All of the number that I will mention are all on a non-GAAP basis. For Sohu media portal, quarterly revenues were $23 million, down 26% year-over-year. The quarterly loss was $35 million, which compares with a net loss of $29 million in the first quarter of 2018. For Sohu Video, quarterly revenues were $26 million, down 16% from a year ago. Of this, advertising revenues were $10 million. Excluding impairment charges, the operating loss for Sohu Video was $27 million, which compares with a net loss of $48 million in the same quarter last year. For Sogou, quarterly revenue were $253 million, up 2% year-over-year and down 15% quarter-over-quarter. Net loss was $3 million compared with net income of $20 million in the same quarter last year. For Changyou, quarterly revenues, including 17173, were $123 million, down 10% year-over-year, and up 5% quarter-over-quarter. Changyou posted net income of $37 million compared with net loss of $16 million in the same quarter last year. For the second quarter of 2019, we expect total revenues to be between $469 million and $494 million, brand advertising revenues to be between $47 million and $52 million. This implies annual decrease of 16% to 24% and a sequential increase of 9% to 21%. Sogou revenues to be between $303 million and $313 million. This implies increase of 1% to 4% and a sequential increase of 20% to 24%. Online game revenues to be between $90 million and $100 million. This implies annual decrease of 5% to annual increase of 6% and a sequential decrease of 9% to a sequential increase of 1%. Non-GAAP net loss attributable to Sohu.com Limited to be between $38 million and $48 million and non-GAAP loss per fully diluted ADS to be between $0.95 and $1.20. GAAP net loss attributable to Sohu.com Limited to be between $40 million and $50 million and GAAP loss per fully diluted ADS to be between $1 and $1.25. Excluding profit generated by Sogou and Changyou, non-GAAP net loss attributable to Sohu.com Limited to be between $65 million and $70 million. GAAP net loss attributable to Sohu.com Limited to be between $67 million and $72 million. For the second quarter 2019 guidance, we used a presumed exchange rate of RMB6.8 to one dollar, which compares with the actual exchange rate of around RMB6.38 to one dollar for the second quarter of 2018 and RMB6.74 to one dollar for the first quarter of 2019. With that, this concludes our prepared remarks. Operator, we will now like to open the call for questions.

[Operator Instructions] Your first question comes from the line of Alicia Yap from Citigroup.

Hi, good evening, Charles, Joanna and other management. Thanks for taking my question. I have a couple of questions. Number one is what are the plans for the use of cash from the special dividend that we see from Changyou? Second question is, what is the impact to Sohu Video on the recent regulatory restrictions on broadcasting the costume drama, any other content restriction that you foresee could be introduced later this year. And then just lastly quickly is related to Changyou. On the Changyou call earlier, the management mentioned about the [indiscernible] in Korea, so just wonder why [indiscernible] that game rather than not publishing themselves.

Okay. The use of cash, right, from the dividend. Well, yeah, on a quarterly level, we're still at a loss, still burning cash, right, so we'll continue – we need to spend money on the news apps, the channels and also product and technology development and so – and also the video, video, so, that’s – in many places, you use the cash flow, just using really diligently and make sure that we will continue to narrow the loss. So that will have a pretty room or ground to move forward. The regulation on customer drama, it's actually not much restriction, right, on the customer drama and that’s one, it's not -- it's just, there's no such regulation. So, there is talk about it, but never actually carried out. And also for Sohu’s in-house – Sohu produced dramas, we tend to have drama for modern, not the ancient stories, but the modern times, so that we have a lot of opportunities to have the embedded advertising, like a car, automobiles or mobile phones and all these kind of commercial items that are embedded in the story. For the ancient customer dramas, you don't have a lot of opportunity to do that, so the advertising.

[Foreign Language] They are running business overseas, it’s – but we are especially doing good in Korea market. [Foreign Language] So actually, we are having very good relationships with both like Tencent for some IT or local or brand, we also authorize, so it’s good for us.

[Operator Instructions] The next follow-up question comes from the line of Alicia Yap from Citigroup.

Hi. Sorry. Thanks. I have one follow up question, if I may. Actually, wanted to know, I know this April period, the whole industry, closing, signing up -- off most of the framework contract. So just wonder, if management see what is Sohu’s demand, right, from the app budget site and then also any change in terms of the different industry verticals that if you can share the color. Thank you.

[Foreign Language] Well, there is – in the auto industry, there is a mix. It's mixed signals, some of those imported cars, automobile especially US or European brand seems suffering, but the Japanese brand seems and also German brand is doing better? And yeah, the Japanese brand. Yeah. So in the auto industry, there's generally a kind of weak advertising spending, weaker. But there is mix, some strong. [Foreign Language] Yeah, exactly, the search, in the liquor business, right, the Chinese liquor business is coming up and also those kind of, fast moving consumer goods, cosmetics, medical, paramedical or something, those kind of –

Micro merchant.

Micro merchant, those are coming strong. So there is always, advertising always at an economic downturn. It's always to see some of those traditional industry sectors are kind of weak showing, but then you always have big China -- so many people, there are always some sectors that suddenly show up, right, strongly.

Okay. All right. That's helpful. Thank you, Charles.

[Operator Instructions] All right. Thank you. So there are no further questions at this time. Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect.