BEIJING, May 13, 2019 /PRNewswire/ -- Phoenix New Media
Limited (NYSE: FENG) ("Phoenix New Media", "ifeng" or the
"Company"), a leading new media company in China, today announced its unaudited financial
results for the first quarter ended March 31, 2019.
Mr. Shuang Liu, CEO of Phoenix
New Media, commented, "I am so pleased that our topline exceeded
our expectations. In the first quarter of 2019, we continued to
focus on enhancing our AI framework by further improving its
synergies with our editorial system. The successful integration of
human expertise and AI algorithms not only strengthened our ability
to generate and distribute high-quality content, but also allowed
us to maintain our professional journalism standards and provide
unbiased, premium content to our users. In addition, our new growth
initiatives in our content offering strategy, digital reading
and our expansion in lifestyle related verticals have all
out-performed our expectations.
Despite headwinds from macroeconomic uncertainties and industry
challenges, we are confident that our ability to generate accurate
and highly relevant sales leads in a variety of niche verticals can
help our clients achieve a high ROI with a limited marketing
budget."
Ms. Betty Ho, CFO of Phoenix New Media, further
stated, "For the first quarter of 2019, our total revenues
reached RMB284.9 million, exceeding
the high end of our previous guidance as a result of the better
than expected performance of the digital reading business of
Tadu. The total consolidated paid services revenues for the first
quarter of 2019 increased by 66.1% year over year to RMB68.9 million. However, our net advertising
revenues for the first quarter of 2019 decreased to RMB216.0 million primarily as a result of
macroeconomic uncertainties and increased competition. Looking
ahead, we will continue to invest in the expansion of original
content and to further diversify our product offerings. We are
actively exploring potential investment in premium content and
expect the synergies between our different businesses to enable us
to enter into a fresh growth cycle."
First Quarter 2019 Financial Results
REVENUES
Total revenues for the first quarter of
2019 were RMB284.9 million (US$42.4 million), which were flat as compared
with the same quarter last year, though the Company consolidated
the revenues from Beijing Yitian Xindong Network Technology
Co., Ltd. ("Yitian Xindong" or "Tadu") of RMB43.5 million (US$6.5
million), the advertising revenues were decreased due to
macroeconomic headwind and intense competition.
Net advertising revenues for the first quarter of 2019
were RMB216.0 million (US$32.2 million), which represented a decrease of
11.3% from RMB243.4 million in the
first quarter of 2018, primarily attributable to a 9.0%
year-over-year decrease in PC advertising revenues and a 12.4%
year-over-year decrease in mobile advertising revenues.
Paid services revenues[1] for the first quarter
of 2019 were RMB68.9 million
(US$10.3 million), which represented
an increase of 66.1% from RMB41.5 million in the
first quarter of 2018. Revenues from paid contents for the
first quarter of 2019 increased 147.8% to RMB52.9 million (US$7.9
million) from RMB21.4 million in the first quarter of
2018 primarily due to the inclusion of digital reading revenues
from Tadu. Revenues from games for the first quarter of 2019 were
RMB3.1 million (US$0.5 million), which represented a decrease of
35.0% from RMB4.8 million in the
first quarter of 2018. Revenues from MVAS for the
first quarter of 2019 were RMB7.9
million (US$1.2 million),
which represented a decrease of 42.0% from RMB13.7 million in the first quarter of
2018. Revenues from others for the first quarter of 2019 were
RMB5.0 million (US$0.7 million), which represented an increase of
200.8% from RMB1.6 million in the
first quarter of 2018, mainly caused by the increase in revenues
from commissions generated from online transactions.
[1] Prior
to 2019, paid services revenues comprised of (i) revenues
from digital entertainment, which included MVAS and digital
reading, and (ii) revenues from games and others, which
included web-based games, mobile games, content sales, and other
online and mobile paid services through the Company's own
platforms.
|
Beginning from
January 1, 2019, paid services revenues have been re-classified and
now comprised of (i) revenues from paid contents, which
includes digital reading, audio books, paid videos, and other
content-related sales activities, (ii) revenues from games,
which includes web-based games and mobile games,
(iii) revenues from MVAS, and (iv) revenues from
others. For comparison purposes, the revenues from paid
services for the quarters of 2018 have been
retrospectively re-classified.
|
COST OF REVENUES
Cost of revenues for the first quarter of 2019 was RMB178.2 million (US$26.5
million), representing an increase of 38.4% from
RMB128.7 million in the first quarter
of 2018. The increase in cost of revenues was mainly due
to:
- Content and operational costs for the first quarter of 2019
increased from RMB105.8 million in
the first quarter of 2018 to RMB147.0
million (US$21.9 million),
primarily attributable to an increase in IP production costs.
- Revenue sharing fees to telecom operators and channel partners
for the first quarter of 2019 increased from RMB8.6 million in the first quarter of 2018 to
RMB17.3 million (US$2.6 million), primarily attributable to the
increase in revenue sharing fees paid to content providers by
Tadu.
- Share-based compensation included in cost of revenues was
RMB1.4 million (US$0.2 million) in the first quarter of 2019, as
compared to RMB0.2 million in the
first quarter of 2018, primarily attributable to the newly granted
restricted share units to some employees under a restricted share
unit scheme adopted in 2018 by Fread Limited, a subsidiary of the
Company.
The increase in cost of revenues was partially offset by
decrease in bandwidth costs from RMB14.3
million in the first quarter of 2018 to RMB13.9 million (US$2.1
million) for the first quarter of 2019.
GROSS PROFIT
Gross profit for the first quarter of 2019
was RMB106.7 million (US$15.9
million), as compared to RMB156.2 million in the
first quarter of 2018. Gross margin for the first quarter of 2019
decreased to 37.5% from 54.9% in the first quarter of 2018,
mainly caused by the 38.4% year-over-year increase in cost of
revenues for the first quarter of 2019 as explained above.
To supplement the financial measures presented in accordance
with the United States Generally Accepted Accounting Principles
("GAAP"), the Company has presented certain non-GAAP financial
measures in this press release, which excluded the impact of
certain reconciling items as stated in the "Use of Non-GAAP
Financial Measures" section below. The related reconciliations to
GAAP financial measures are presented in the accompanying
"Reconciliations of Non-GAAP Results of Operation Measures to the
Nearest Comparable GAAP Measures."
Non-GAAP gross margin for the first quarter of 2019, which
excluded share-based compensation, decreased to 38.0% from 55.0% in
the first quarter of 2018.
OPERATING EXPENSES AND LOSS FROM
OPERATIONS
Total operating expenses for the first quarter of
2019 increased by 6.9% from RMB214.0 million in the first quarter of
2018 to RMB228.8
million (US$34.1 million),
primarily attributable to the inclusion of operating
expenses from Tadu. Share-based compensation included in
operating expenses was RMB2.5
million (US$0.4
million) in the first quarter of 2019, as compared to
RMB3.2 million in the first quarter
of 2018. As the Company recognized share-based compensation, net of
estimated forfeitures, on a graded-vesting basis over the vesting
term of the awards, there was less share-based compensation
recognized in the first quarter of 2019 for share options
granted prior to 2019.
Loss from operations for the first quarter of 2019 was
RMB122.1 million (US$18.2 million), as compared to loss from
operations of RMB57.9 million in the
first quarter of 2018. Operating margin for the first quarter of
2019 decreased to negative 42.9% from negative 20.3% in the first
quarter of 2018.
Non-GAAP loss from operations for the first quarter of
2019, which excluded share-based compensation, was
RMB118.1 million (US$17.6 million), as compared to non-GAAP loss
from operations of RMB54.4 million in
the first quarter of 2018. Non-GAAP operating margin for the first
quarter of 2019, which excluded share-based
compensation, decreased to negative 41.5% from
negative 19.1% in the first quarter of 2018.
OTHER INCOME OR LOSS
Other income or loss reflects interest income, interest expense,
foreign currency exchange gain or loss, income or loss from equity
method investments, net of impairments, and others,
net[2]. Total net other income for the first quarter of
2019 was RMB1.9 million (US$0.3 million), as compared to net other loss of
RMB5.2 million in the first quarter
of 2018.
- Interest income for the first quarter of 2019 decreased to
RMB8.7 million (US$1.3 million) from RMB12.9 million in the first quarter of
2018.
- Interest expense for the first quarter of 2019 decreased to
RMB2.9 million (US$0.4 million), from RMB4.6 million in the first quarter of 2018,
which was primarily due to the decrease in outstanding short-term
bank loans in the first quarter of 2019, as compared to that of
2018.
- Foreign currency exchange loss for the first quarter of 2019
was RMB2.2 million (US$0.3 million), as compared to foreign currency
exchange loss of RMB15.1 million in
the first quarter of 2018, which was mainly caused by the less
significant appreciation of Renminbi against US dollars in the
first quarter of 2019 as compared to that of 2018 that generated
less exchange loss in Renminbi denominated liabilities recorded in
the Company's subsidiaries whose functional currency is not
Renminbi.
- Loss from equity method investments, net of impairments, for
the first quarter of 2019 was RMB4.0
million (US$0.6 million), as
compared to loss from equity method investments, net of impairment,
of RMB2.4 million in the first
quarter of 2018.
- Others, net, for the first quarter of 2019 decreased to
RMB2.2 million (US$0.3 million), from RMB4.1 million in the first quarter of 2018.
[2] "Others, net" primarily consists
of government subsidies and litigation loss provisions.
|
NET LOSS ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net loss attributable to Phoenix New Media Limited for the first
quarter of 2019 was RMB119.7 million
(US$17.8 million), as compared to net
loss attributable to Phoenix New Media Limited of RMB57.5 million in the first quarter of 2018. Net
margin for the first quarter of 2019 decreased to negative 42.0%
from negative 20.2% in the first quarter of 2018. Net loss per
diluted ADS[3] in the first quarter of 2019 was
RMB1.65 (US$0.25), as compared to net loss per
diluted ADS of RMB0.79 in the
first quarter of 2018.
Non-GAAP net loss attributable to Phoenix New Media Limited
for the first quarter of 2019, which excluded share-based
compensation and income or loss from equity method investments, net
of impairments, was RMB111.8 million
(US$16.7 million), as compared to
non-GAAP net loss attributable to Phoenix New Media Limited of
RMB51.7 million in the first
quarter of 2018. Non-GAAP net margin for the first quarter of 2019
decreased to negative 39.2% from negative 18.2% in the first
quarter of 2018. Non-GAAP net loss per diluted ADS in the
first quarter of 2019 was RMB1.54 (US$0.23),
as compared to non-GAAP net loss per diluted ADS
of RMB0.71 in the first quarter of 2018.
For the first quarter of 2019, the Company's weighted average
number of ADSs used in the computation of diluted net loss per ADS
was 72,773,389. As of March 31, 2019,
the Company had a total of 582,249,952 ordinary shares outstanding,
or the equivalent of 72,781,244 ADSs.
[3] "ADS" means American Depositary
Share of the Company. Each ADS represents eight Class A ordinary
shares of the Company.
|
CERTAIN BALANCE SHEET ITEMS
As of March 31, 2019, the
Company's cash and cash equivalents, term deposits and short term
investments and restricted cash were RMB1.75 billion (US$260.3 million). Restricted cash represents
deposits placed as security for banking facilities granted to the
Company, which are restricted in their withdrawal or usage. The
increase of cash balance was due to the receipt of the US$100.0 million deposit from proposed buyers of
investments in Particle Inc. ("Particle").
On February 23, 2019, the Company
entered into a binding letter of intent (the "LOI") with an
independent third party to sell 32% of the total outstanding shares
of Particle on an as-if converted basis to such party or its
designated entities (collectively referred to as the "Proposed
Buyers") for a total consideration of US$448.0 million in cash. The proposed buyers
have paid cash deposit of US$100.0
million to the Company, and the Company and the proposed
buyers entered into the formal purchase agreement (the "SPA") on
March 22, 2019 (the "Proposed
Transactions"). Completion of the Proposed Transactions is still
subject to certain closing conditions, though some of them have
been met and some of them are progressing. There is no assurance
that the Proposed Transactions will ever be closed. The fair value
of available-for-sale debt investments in Particle increased from
RMB1,959.5 million as of December 31, 2018 to RMB2,728.4 million (US$406.6 million) as of March 31, 2019, mainly due to the increased
possibility of completing the Proposed Transactions based on the
status of various closing conditions used in the valuation of
available-for-sale debt investments in Particle for the first
quarter of 2019.
Business Outlook
For the second quarter of 2019, the Company expects its
total revenues to be between RMB374.1
million and RMB394.1 million;
net advertising revenues are expected to be between RMB308.8 million and RMB323.8 million; and paid services revenues
are expected to be between RMB65.3
million and RMB70.3
million.
All of the above forecasts reflect the Company's current and
preliminary view on the market and operational conditions, which
are subject to change.
Conference Call Information
The Company will hold a conference call at 9:00 p.m.
U.S. Eastern Time on May 13,
2019 (May 14, 2019 at
9:00 a.m. Beijing/Hong
Kong time) to discuss its first quarter 2019 unaudited
financial results and operating performance.
To participate in the call, please use the dial-in numbers and
conference ID below:
International:
|
+65
67135440
|
Mainland
China:
|
4001200654
|
Hong
Kong:
|
+852
30186776
|
United
States:
|
+1
8456750438
|
United
Kingdom:
|
08000159724
|
Australia:
|
1300713759
|
Conference
ID:
|
5560416
|
A replay of the call will be available through May 21, 2019 by using the dial-in numbers and
conference ID below:
International:
|
+61
290034211
|
Mainland
China:
|
4006322162
|
Hong Kong:
|
+852
30512780
|
United
States:
|
+1
6462543697
|
Conference
ID:
|
5560416
|
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
http://ir.ifeng.com.
Use of Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in
accordance with the United States Generally Accepted
Accounting Principles ("GAAP"), Phoenix New Media Limited
uses non-GAAP gross profit, non-GAAP gross margin,
non-GAAP income or loss from operations, non-GAAP operating margin,
non-GAAP net income or loss attributable to Phoenix New Media
Limited, non-GAAP net margin and non-GAAP net income
or loss per diluted ADS, each of which is a non-GAAP financial
measure. Non-GAAP gross profit is gross profit excluding
share-based compensation. Non-GAAP gross margin is non-GAAP
gross profit divided by total revenues. Non-GAAP income or loss
from operations is income or loss from operations excluding
share-based compensation. Non-GAAP operating margin is non-GAAP
income or loss from operations divided by total revenues. Non-GAAP
net income or loss attributable to Phoenix New Media Limited is net
income or loss attributable to Phoenix New Media Limited
excluding share-based compensation and income or loss from
equity method investments, net of impairments. Non-GAAP net
margin is non-GAAP net income or loss attributable to
Phoenix New Media Limited divided by total revenues. Non-GAAP
net income or loss per diluted ADS is non-GAAP net income or loss
attributable to Phoenix New Media Limited divided by weighted
average number of diluted ADSs. The Company believes that separate
analysis and exclusion of the aforementioned non-GAAP to GAAP
reconciling items add clarity to the constituent parts of its
performance. The Company reviews these non-GAAP financial
measures together with the related GAAP financial
measures to obtain a better understanding of its operating
performance. It uses these non-GAAP financial measures for
planning, forecasting and measuring results against the forecast.
The Company believes that using these non-GAAP financial measures
to evaluate its business allows both management and investors
to assess the Company's performance against its competitors
and ultimately monitor its capacity to generate returns for
investors. The Company also believes that these
non-GAAP financial measures are useful supplemental
information for investors and analysts to assess its operating
performance without the effect of items like share-based
compensation and income or loss from equity method
investments, net of impairments, which have been and will
continue to be significant and recurring in its business. However,
the use of these non-GAAP financial measures has material
limitations as an analytical tool. One of the limitations of using
these non-GAAP financial measures is that they do not
include all items that impact the Company's gross profit, income or
loss from operations and net income or loss attributable to
Phoenix New Media Limited for the period. In addition, because
these non-GAAP financial measures are not
calculated in the same manner by all companies, they may
not be comparable to other similarly titled measures used by
other companies. In light of the foregoing limitations, you should
not consider these non-GAAP financial measures in isolation from,
or as an alternative to, the financial measures prepared in
accordance with GAAP.
Exchange Rate
This announcement contains translations of certain RMB amounts
into U.S. dollars ("USD") at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to USD were made at the rate of RMB6.7112 to US$1.00, the noon buying rate in effect on
March 31, 2019 in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or USD amounts referred could be
converted into USD or RMB, as the case may be, at any particular
rate or at all. For analytical presentation, all percentages are
calculated using the numbers presented in the financial statements
contained in this earnings release.
About Phoenix New Media Limited
Phoenix New Media Limited (NYSE: FENG) is a leading new media
company providing premium content on an integrated Internet
platform, including PC and mobile, in China. Having originated from a leading global
Chinese language TV network based in Hong
Kong, Phoenix TV, the Company enables consumers to access
professional news and other quality information and share
user-generated content on the Internet through their PCs and mobile
devices. Phoenix New Media's platform includes its PC channel,
consisting of ifeng.com website, which comprises interest-based
verticals and interactive services; its mobile channel, consisting
of mobile news applications, mobile video application, digital
reading applications and mobile Internet website; and its
operations with the telecom operators that provides mobile
value-added services.
Safe Harbor Statement
This announcement contains forward−looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward−looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as Phoenix New Media's strategic and
operational plans, contain forward−looking statements. Phoenix New
Media may also make written or oral forward−looking statements in
its periodic reports to the U.S. Securities and Exchange Commission
("SEC") on Forms 20−F and 6−K, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts,
including statements about Phoenix New Media's beliefs and
expectations, are forward−looking statements. Forward−looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward−looking statement, including but not
limited to the following: the Company's goals and strategies; the
Company's future business development, financial condition and
results of operations; the expected growth of online and mobile
advertising, online video and mobile paid services markets in
China; the Company's reliance on
online and mobile advertising and MVAS for a majority of its total
revenues; the Company's expectations regarding demand for and
market acceptance of its services; the Company's expectations
regarding maintaining and strengthening its relationships with
advertisers, partners and customers; the Company's investment plans
and strategies, fluctuations in the Company's quarterly operating
results; the Company's plans to enhance its user experience,
infrastructure and services offerings; the Company's reliance on
mobile operators in China to
provide most of its MVAS; changes by mobile operators in
China to their policies for MVAS;
competition in its industry in China; and relevant government policies and
regulations relating to the Company. Further information regarding
these and other risks is included in the Company's filings with the
SEC, including its registration statement on Form F−1, as
amended, and its annual reports on Form 20−F. All information
provided in this press release and in the attachments is as of the
date of this press release, and Phoenix New Media does not
undertake any obligation to update any forward−looking statement,
except as required under applicable law.
For investor and media inquiries please contact:
Phoenix New Media Limited
Qing Liu
Email: investorrelations@ifeng.com
ICR, Inc.
Jack Wang
Tel: +1 (646) 405-4883
Email: investorrelations@ifeng.com
Phoenix New Media
Limited
|
Condensed
Consolidated Balance Sheets
|
(Amounts in
thousands)
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
2018
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
US$
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
174,024
|
|
295,729
|
|
44,065
|
Term deposits and
short term investments
|
912,594
|
|
1,194,317
|
|
177,959
|
Restricted
cash
|
269,648
|
|
256,850
|
|
38,272
|
Accounts receivable,
net
|
484,113
|
|
486,466
|
|
72,486
|
Amounts due from
related parties
|
91,228
|
|
89,374
|
|
13,317
|
Prepayment and other
current assets
|
88,963
|
|
94,066
|
|
14,016
|
Total current
assets
|
2,020,570
|
|
2,416,802
|
|
360,115
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
95,631
|
|
88,217
|
|
13,145
|
Intangible assets,
net
|
97,448
|
|
96,834
|
|
14,429
|
Goodwill
|
338,288
|
|
338,288
|
|
50,406
|
Available-for-sale
debt investments
|
1,961,474
|
|
2,730,448
|
|
406,849
|
Equity investments,
net
|
33,694
|
|
29,726
|
|
4,429
|
Deferred tax
assets
|
60,160
|
|
55,978
|
|
8,341
|
Operating lease
right-of- use assets, net
|
-
|
|
93,551
|
|
13,940
|
Other non-current
assets
|
23,454
|
|
18,070
|
|
2,693
|
Total non-current
assets
|
2,610,149
|
|
3,451,112
|
|
514,232
|
Total
assets
|
4,630,719
|
|
5,867,914
|
|
874,347
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
loans
|
267,665
|
|
242,406
|
|
36,120
|
Accounts
payable
|
264,753
|
|
253,078
|
|
37,710
|
Amounts due to related
parties
|
25,218
|
|
18,070
|
|
2,693
|
Advances from
customers
|
54,601
|
|
53,051
|
|
7,905
|
Taxes
payable
|
101,386
|
|
95,159
|
|
14,179
|
Salary and welfare
payable
|
132,316
|
|
92,259
|
|
13,747
|
Deposits from proposed
buyers of investments in
Particle
|
-
|
|
673,350
|
|
100,332
|
Accrued expenses and
other current liabilities
|
227,328
|
|
264,347
|
|
39,388
|
Operating
lease liabilities
|
-
|
|
27,195
|
|
4,052
|
Total current
liabilities
|
1,073,267
|
|
1,718,915
|
|
256,126
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
140,960
|
|
216,084
|
|
32,198
|
Long-term
liabilities
|
26,131
|
|
26,131
|
|
3,894
|
Operating
lease liabilities
|
-
|
|
67,554
|
|
10,066
|
Total non-current
liabilities
|
167,091
|
|
309,769
|
|
46,158
|
Total
liabilities
|
1,240,358
|
|
2,028,684
|
|
302,284
|
Shareholders'
equity:
|
|
|
|
|
|
Phoenix New Media
Limited shareholders' equity:
|
|
|
|
|
|
Class A ordinary
shares
|
17,487
|
|
17,494
|
|
2,607
|
Class B ordinary
shares
|
22,053
|
|
22,053
|
|
3,286
|
Additional paid-in
capital
|
1,604,588
|
|
1,604,501
|
|
239,078
|
Statutory
reserves
|
87,620
|
|
87,620
|
|
13,056
|
Retained
earnings
|
159,621
|
|
39,884
|
|
5,943
|
Accumulated other
comprehensive income
|
1,188,358
|
|
1,886,567
|
|
281,107
|
Total Phoenix New
Media Limited shareholders' equity
|
3,079,727
|
|
3,658,119
|
|
545,077
|
Noncontrolling
interests
|
310,634
|
|
181,111
|
|
26,986
|
Total
shareholders' equity
|
3,390,361
|
|
3,839,230
|
|
572,063
|
Total liabilities
and shareholders' equity
|
4,630,719
|
|
5,867,914
|
|
874,347
|
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 26, 2019.
|
Phoenix New
Media Limited
|
Condensed
Consolidated Statements of Comprehensive Income
/(loss)
|
(Amounts in
thousands, except for number of shares and per share (or ADS)
data)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
2018
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Net
advertising revenues
|
243,448
|
|
355,979
|
|
215,984
|
|
32,183
|
Paid service
revenues
|
41,475
|
|
43,255
|
|
68,890
|
|
10,265
|
Total
revenues
|
284,923
|
|
399,234
|
|
284,874
|
|
42,448
|
Cost of
revenues
|
(128,744)
|
|
(181,272)
|
|
(178,145)
|
|
(26,544)
|
Gross
profit
|
156,179
|
|
217,962
|
|
106,729
|
|
15,904
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales and
marketing expenses
|
(131,219)
|
|
(155,522)
|
|
(120,572)
|
|
(17,966)
|
General and
administrative expenses
|
(34,398)
|
|
(44,670)
|
|
(48,852)
|
|
(7,279)
|
Technology and
product development expenses
|
(48,412)
|
|
(56,819)
|
|
(59,441)
|
|
(8,857)
|
Total operating
expenses
|
(214,029)
|
|
(257,011)
|
|
(228,865)
|
|
(34,102)
|
Loss from
operations
|
(57,850)
|
|
(39,049)
|
|
(122,136)
|
|
(18,198)
|
Other
income/(loss):
|
|
|
|
|
|
|
|
Interest
income
|
12,938
|
|
8,608
|
|
8,658
|
|
1,290
|
Interest
expenses
|
(4,633)
|
|
(2,442)
|
|
(2,903)
|
|
(433)
|
Foreign
currency exchange loss
|
(15,131)
|
|
(317)
|
|
(2,167)
|
|
(323)
|
(Loss)/income
from equity method investments, net
of impairments
|
(2,430)
|
|
3,977
|
|
(3,968)
|
|
(591)
|
Others,
net
|
4,093
|
|
9,854
|
|
2,241
|
|
334
|
Loss before
tax
|
(63,013)
|
|
(19,369)
|
|
(120,275)
|
|
(17,921)
|
Income tax
benefit/(expense)
|
4,724
|
|
(20,220)
|
|
(7,461)
|
|
(1,112)
|
Net
loss
|
(58,289)
|
|
(39,589)
|
|
(127,736)
|
|
(19,033)
|
Net loss
attributable to noncontrolling interests
|
749
|
|
1,292
|
|
7,999
|
|
1,192
|
Net loss
attributable to Phoenix New Media Limited
|
(57,540)
|
|
(38,297)
|
|
(119,737)
|
|
(17,841)
|
Net
loss
|
(58,289)
|
|
(39,589)
|
|
(127,736)
|
|
(19,033)
|
Other
comprehensive income, net of tax: fair value
remeasurement for available-for-sale
investments
|
46,364
|
|
462,558
|
|
725,403
|
|
108,088
|
Other
comprehensive loss, net of tax: foreign
currency translation adjustment
|
(35,014)
|
|
(2,534)
|
|
(27,193)
|
|
(4,052)
|
Comprehensive
(loss)/income
|
(46,939)
|
|
420,435
|
|
570,474
|
|
85,003
|
Comprehensive
loss attributable to noncontrolling interests
|
749
|
|
1,292
|
|
7,999
|
|
1,192
|
Comprehensive
(loss)/income attributable to
Phoenix New Media Limited
|
(46,190)
|
|
421,727
|
|
578,473
|
|
86,195
|
Net
loss attributable to Phoenix New Media
Limited
|
(57,540)
|
|
(38,297)
|
|
(119,737)
|
|
(17,841)
|
Net loss per Class A
and Class B ordinary share:
|
|
|
|
|
|
|
|
Basic
|
(0.10)
|
|
(0.07)
|
|
(0.21)
|
|
(0.03)
|
Diluted
|
(0.10)
|
|
(0.07)
|
|
(0.21)
|
|
(0.03)
|
Net loss per ADS (1
ADS represents 8 Class A ordinary shares):
|
|
|
|
|
|
|
|
Basic
|
(0.79)
|
|
(0.53)
|
|
(1.65)
|
|
(0.25)
|
Diluted
|
(0.79)
|
|
(0.53)
|
|
(1.65)
|
|
(0.25)
|
Weighted average
number of Class A and Class B
ordinary shares used in computing net loss
per share:
|
|
|
|
|
|
|
|
Basic
|
579,228,111
|
|
582,137,314
|
|
582,187,109
|
|
582,187,109
|
Diluted
|
579,228,111
|
|
582,137,314
|
|
582,187,109
|
|
582,187,109
|
Phoenix New Media
Limited
|
Condensed Segments
Information
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
|
2018
|
|
2018
|
|
2019
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Net
advertising service
|
243,448
|
|
355,979
|
|
215,984
|
|
32,183
|
|
Paid
service
|
41,475
|
|
43,255
|
|
68,890
|
|
10,265
|
|
Total
revenues
|
284,923
|
|
399,234
|
|
284,874
|
|
42,448
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
Net
advertising service
|
107,453
|
|
166,652
|
|
140,060
|
|
20,869
|
|
Paid
service
|
21,291
|
|
14,620
|
|
38,085
|
|
5,675
|
|
Total cost of
revenues
|
128,744
|
|
181,272
|
|
178,145
|
|
26,544
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
Net
advertising service
|
135,995
|
|
189,327
|
|
75,924
|
|
11,314
|
|
Paid
service
|
20,184
|
|
28,635
|
|
30,805
|
|
4,590
|
|
Total gross
profit
|
156,179
|
|
217,962
|
|
106,729
|
|
15,904
|
|
Phoenix New Media
Limited
|
Condensed
Information of Cost of Revenues
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
2018
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
Revenue sharing
fees
|
8,617
|
|
13,201
|
|
17,329
|
|
2,582
|
Content and
operational costs
|
105,784
|
|
153,866
|
|
146,961
|
|
21,898
|
Bandwidth
costs
|
14,343
|
|
14,205
|
|
13,855
|
|
2,064
|
Total cost of
revenues
|
128,744
|
|
181,272
|
|
178,145
|
|
26,544
|
Reconciliations of
Non-GAAP Results of Operations Measures to the Nearest Comparable
GAAP Measures
|
(Amounts in
thousands, except for number of ADSs and per ADS
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2018
|
|
Three Months Ended
December 31, 2018
|
|
Three Months Ended
March 31, 2019
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Gross
profit
|
156,179
|
|
205
|
(1)
|
156,384
|
|
217,962
|
|
2,469
|
(1)
|
220,431
|
|
106,729
|
|
1,441
|
(1)
|
108,170
|
Gross
margin
|
54.9%
|
|
|
|
55.0%
|
|
54.6%
|
|
|
|
55.2%
|
|
37.5%
|
|
|
|
38.0%
|
Loss from
operations
|
(57,850)
|
|
3,450
|
(1)
|
(54,400)
|
|
(39,049)
|
|
4,614
|
(1)
|
(34,435)
|
|
(122,136)
|
|
3,987
|
(1)
|
(118,149)
|
Operating
margin
|
(20.3)%
|
|
|
|
(19.1)%
|
|
(9.8)%
|
|
|
|
(8.6)%
|
|
(42.9)%
|
|
|
|
(41.5)%
|
|
|
|
3,450
|
(1)
|
|
|
|
|
4,614
|
(1)
|
|
|
|
|
3,987
|
(1)
|
|
|
|
|
2,430
|
(2)
|
|
|
|
|
(3,977)
|
(2)
|
|
|
|
|
3,968
|
(2)
|
|
Net loss
attributable to
Phoenix New
Media Limited
|
(57,540)
|
|
5,880
|
|
(51,660)
|
|
(38,297)
|
|
637
|
|
(37,660)
|
|
(119,737)
|
|
7,955
|
|
(111,782)
|
Net margin
|
(20.2)%
|
|
|
|
(18.2)%
|
|
(9.6)%
|
|
|
|
(9.4)%
|
|
(42.0)%
|
|
|
|
(39.2)%
|
Net loss per ADS-
diluted
|
(0.79)
|
|
|
|
(0.71)
|
|
(0.53)
|
|
|
|
(0.52)
|
|
(1.65)
|
|
|
|
(1.54)
|
Weighted average
number of ADSs
used in computing
diluted net loss per
ADS
|
72,403,514
|
|
|
|
72,403,514
|
|
72,767,164
|
|
|
|
72,767,164
|
|
72,773,389
|
|
|
|
72,773,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation
|
(2) (Income)/loss
from equity method investments, net of impairments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP to GAAP
reconciling items have no income tax effect.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-first-quarter-2019-unaudited-financial-results-300848779.html
SOURCE Phoenix New Media Limited