BEIJING, Aug. 12, 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 second quarter ended June 30, 2019.
Mr. Shuang Liu, CEO of Phoenix
New Media, commented, "Despite a challenging macroeconomic
environment during the second quarter of 2019, we remained
committed to the sustained growth and evolution of our business.
During the second quarter, we continued to refine our combination
of AI-powered content recommendation and seasoned editorial
curation. Moreover, we further expanded our market-leading content
library, which allowed us to explore additional monetization
opportunities. Going forward, we are confident that our robust
content recommendation system, premium brand equity, and innovative
growth initiatives will further solidify our leadership in
China's new media industry."
Ms. Betty Ho, CFO of Phoenix New Media, further
stated, "In the second quarter of 2019, our total revenues reached
RMB395.1 million, representing an
8.6% year-over-year growth and 38.7% sequential growth.
Importantly, total revenues for paid services in the second quarter
of 2019 increased by 51.1% year over year to RMB70.3 million, mainly driven by the outstanding
performance of our digital reading business since the
acquisition of Tadu. Also, our new business initiatives made
material contributions to our growth as we continued to deliver a
broad range of informative content in lifestyle-related categories
such as real estate, food, and fashion. Our net advertising
revenues for the second quarter of 2019 increased by 2.3% year over
year to RMB324.8 million. Looking
ahead, we will continue to invest in the development of AI
technology, production of in-house content, and expansion of
lifestyle verticals. We are confident that through our strategic
allocation of capital and well-defined business objectives we will
continue to generate long-term return to our shareholders."
Second Quarter 2019 Financial Results
REVENUES
Total revenues for the second quarter of
2019 were RMB395.1 million (US$57.5 million), representing an increase of
8.6% from RMB363.9 million in the
second quarter of 2018. The increase was caused by the consolidated
revenues of RMB49.2 million
(US$7.2 million) in the second
quarter of 2019 from Beijing Yitian Xindong Network Technology
Co., Ltd. ("Yitian Xindong" or "Tadu") consolidated starting
from December 28, 2018 and the
consolidated revenues of RMB84.6
million (US$12.3 million),
starting from April 1, 2019, from Beijing Fenghuang Tianbo
Network Technology Co., Ltd. ("Tianbo"). The Company's net
advertising revenues from traditional business decreased by 28.5%
due to the macroeconomic uncertainties and increased
competitions.
Net advertising revenues for the second quarter of
2019 were RMB324.8 million
(US$47.3 million), representing an
increase of 2.3% from RMB317.4
million in the second quarter of 2018. The increase was
primarily attributable to the consolidation of advertising
revenues from Tianbo. However, the Company's net advertising
revenues from traditional business declined due to the above stated
reason.
Paid services revenues[1] for the second quarter
of 2019 were RMB70.3 million
(US$10.2 million), which represented
an increase of 51.1% from RMB46.5 million in the
second quarter of 2018. Revenues from paid contents for the
second quarter of 2019 increased by 126.7% to RMB54.0 million (US$7.9
million) from RMB23.8 million in the second quarter
of 2018, primarily due to the consolidation of digital reading
revenues from Tadu. Revenues from games for the second
quarter of 2019 were RMB2.6 million (US$0.4 million), which represented a decrease of
34.7% from RMB4.0 million in the
second quarter of 2018. Revenues from MVAS for the
second quarter of 2019 were RMB6.7
million (US$1.0 million),
which represented a decrease of 62.0% from RMB17.5 million in the second quarter of
2018. Revenues from others for the second quarter of 2019 increased
to RMB7.0 million (US$1.0 million) from RMB1.2 million in the second quarter of 2018,
representing an increase of 513.4% year-over-year, which was mainly
caused by the increase in revenues from E-commerce and online real
estate related services.
[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 second quarter of 2019 was RMB185.0 million (US$26.9
million), representing an increase of 37.7% from
RMB134.3 million in the second
quarter of 2018. The increase in cost of revenues was mainly due to
the following:
- Content and operational costs for the second quarter of 2019
increased to RMB156.4 million
(US$22.7 million) from RMB108.9 million in the second quarter of 2018,
primarily attributable to the consolidation of content and
operational costs of Tianbo and Tadu, and due to an increase in IP
production costs.
- Revenue sharing fees to telecom operators and channel partners
for the second quarter of 2019 increased to RMB13.7 million (US$2.0
million) from RMB11.5 million
in the second quarter of 2018, primarily attributable to the
increase in revenue sharing fees paid to content providers by
Tadu.
- Bandwidth costs for the second quarter of 2019 increased to
RMB14.9 million (US$2.2 million) from RMB13.9 million in the second quarter of
2018.
- Share-based compensation included in cost of revenues was
RMB1.9 million (US$0.3 million) in the second quarter of 2019, as
compared to RMB0.6 million the second
quarter of 2018, primarily attributable to the restricted share
units newly granted to some employees in 2019 under a restricted
share unit scheme adopted in 2018 by Fread Limited, a subsidiary of
the Company.
GROSS PROFIT
Gross profit for the second quarter of 2019 decreased
to RMB210.1 million (US$30.6
million) from RMB229.6 million in the second quarter of
2018. Gross margin for the second quarter of 2019 decreased to
53.2% from 63.1% in the second quarter of 2018, mainly attributable
to a combined effect of a decrease in gross margin of the Company's
traditional advertising business and the margin contributions
from Tianbo and Tadu.
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 excludes 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 second quarter of 2019, which
excluded share-based compensation, decreased to 53.7% from 63.3% in
the second quarter of 2018.
OPERATING EXPENSES AND INCOME/(LOSS)
FROM OPERATIONS
Total operating expenses for the second quarter of
2019 increased by 44.5% to RMB289.1 million (US$42.1 million) from RMB200.2 million in the second quarter of
2018, primarily attributable to the consolidation of operating
expenses from Tianbo and Tadu. Share-based compensation included in
operating expenses was RMB2.3
million (US$0.3
million) in the second quarter of 2019, as compared to
RMB2.8 million in the second 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 second quarter of 2019 for share options
granted prior to 2019.
Loss from operations for the second quarter of 2019 was
RMB79.0 million (US$11.5 million), as compared to income from
operations of RMB29.4 million in the
second quarter of 2018. Operating margin for the second quarter of
2019 decreased to negative 20.0% from positive 8.1% in the second
quarter of 2018.
Non-GAAP loss from operations for the second quarter
of 2019, which excluded share-based compensation, was
RMB74.8 million (US$10.9 million), as compared to non-GAAP income
from operations of RMB32.8 million in
the second quarter of 2018. Non-GAAP operating margin for the
second quarter of 2019, which excluded share-based
compensation, decreased to negative 18.9% from
positive 9.0% in the second 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 second quarter of
2019 was RMB11.1 million
(US$1.6 million), as compared to
RMB28.1 million in the second quarter
of 2018.
- Interest income for the second quarter of 2019 decreased to
RMB4.6 million (US$0.7 million) from RMB13.6 million in the second quarter of 2018,
primarily due to decrease in the loans granted to Particle, which
were fully settled in the third quarter of 2018.
- Interest expense for the second quarter of 2019 decreased to
RMB1.7 million (US$0.3 million), from RMB3.4 million in the second quarter of 2018,
which was primarily due to the decrease in outstanding short-term
bank loans as the Company repaid all of the short-term bank loans
in the second quarter of 2019.
- Foreign currency exchange gain for the second quarter of 2019
was RMB2.9 million (US$0.4 million), as compared to RMB16.2 million in the second quarter of 2018.
This decrease was mainly caused by the less significant
depreciation of Renminbi against US dollars in the second quarter
of 2019, as compared to that of 2018, which generated less exchange
gain in Renminbi denominated liabilities recorded in the Company's
subsidiaries whose functional currency is not Renminbi.
- Income from equity method investments, net of impairments, for
the second quarter of 2019 was RMB0.5
million (US$0.1 million), as
compared to loss from equity method investments, net of
impairments, of RMB0.4 million in the
second quarter of 2018. The Company recognized income from equity
method investments, net of impairments, of RMB0.5 million (US$0.1
million) as a result of the re-measurement of the previously
held equity interests upon completion of the step acquisition in
Tianbo on April 1, 2019, which was
previously accounted using the equity method of accounting.
- Others, net increased to RMB4.8
million (US$0.7 million) in
the second quarter of 2019 from RMB2.1
million in the second quarter of 2018, which was primarily
attributable to the increase of the government subsidies received
in the second quarter of 2019 as compared to that of 2018.
[2] "Others, net" primarily consists
of government subsidies and litigation loss provisions.
|
NET INCOME/(LOSS) ATTRIBUTABLE TO
PHOENIX NEW MEDIA
LIMITED
Net loss attributable to Phoenix New Media Limited for the
second quarter of 2019 was RMB70.1
million (US$10.2 million), as
compared to net income attributable to Phoenix New Media Limited of
RMB49.2 million in the second quarter
of 2018. Net margin for the second quarter of 2019 decreased to
negative 17.7% from positive 13.5% in the second quarter of 2018.
Net loss per diluted ADS[3] in the second quarter
of 2019 was RMB0.96 (US$0.14), as compared to net income per
diluted ADS of RMB0.67 in the
second quarter of 2018.
Non-GAAP net loss attributable to Phoenix New Media Limited
for the second quarter of 2019, which excluded share-based
compensation and income or loss from equity method investments, net
of impairments, was RMB66.4 million
(US$9.7 million), as compared to
non-GAAP net income attributable to Phoenix New Media
Limited of RMB53.1 million
in the second quarter of 2018. Non-GAAP net margin for the second
quarter of 2019 decreased to negative 16.8% from positive 14.6% in
the second quarter of 2018. Non-GAAP net loss per diluted ADS
in the second quarter of 2019 was RMB0.91 (US$0.13),
as compared to non-GAAP net income per diluted ADS
of RMB0.73 in the second quarter of 2018.
For the second quarter of 2019, the Company's weighted average
number of ADSs used in the computation of diluted net loss per ADS
was 72,783,430. As of June 30, 2019,
the Company had a total of 582,324,325 ordinary shares outstanding,
or the equivalent of 72,790,541 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 June 30, 2019, the Company's
cash and cash equivalents, term deposits and short term investments
and restricted cash were RMB1.69 billion (US$245.8 million), which included RMB251.6 million (US$36.7 million) from Tianbo and RMB16.3 million (US$2.4 million) from Tadu.
As previously announced by the Company, on July 23, 2019,
the Company entered into a supplemental agreement (the
"Supplemental Agreement") to the share purchase agreement (the
"SPA") dated March 22, 2019 between the Company and Run Liang
Tai Management Limited ("Run Liang Tai") for the sale of 32% of the
total outstanding shares of Particle Inc. ("Particle" or "Yidian")
to Run Liang Tai and its designated entities (the "Proposed
Buyers") (the "Proposed Transaction"). The Company agrees to
increase the number of Particle shares to be transferred to the
Proposed Buyers from 199,866,509 shares to 212,358,165 shares while
the total purchase price will remain unchanged at
US$448 million. Instead of requiring full payment of the
purchase price after satisfaction of all closing conditions, the
Supplemental Agreement allows the Proposed Buyers to pay the
purchase price in several installments. In addition to the deposit
of US$100 million received in
March 2019, the Proposed Buyers have
paid the first installment of US$100
million to the Company according to the Supplemental
Agreement. Unless otherwise agreed by both parties, the Proposed
Buyers may pay the remaining purchase price on or before
August 10, 2020. There can be no
assurance that the Proposed Transaction will ever be closed. The
fair value of available-for-sale debt investments in Particle
decreased from RMB2,728.4 million as
of March 31, 2019 to RMB2,271.1
million (US$330.8 million) as
of June 30, 2019, mainly due to the
decrease in the per-share value of Particle shares held by the
Company as more shares would be transferred to the Proposed Buyers
with the same total purchase price, and the time value of the
purchase price used in the valuation of available-for-sale debt
investments in Particle for the second quarter of 2019.
Business Outlook
For the third quarter of 2019, the Company expects its
total revenues to be between RMB373.4
million and RMB393.4 million;
net advertising revenues are expected to be between RMB312.0 million and RMB327.0 million; and paid services revenues
are expected to be between RMB61.4
million and RMB66.4
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 August 12,
2019, (August 13, 2019 at 9:00
a.m. Beijing/Hong Kong time) to discuss its second
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
67135090
|
Mainland
China:
|
4006208038
|
Hong
Kong:
|
+852
30186771
|
United
States:
|
+1
8456750437
|
United
Kingdom:
|
+44
2036214779
|
Australia:
|
+61
290833212
|
Conference
ID:
|
2384599
|
A replay of the call will be available through August 20, 2019, by using the dial-in numbers and
conference ID below:
International:
|
+61 2 8199
0299
|
Mainland
China:
|
4006322162
|
Hong
Kong:
|
+852
30512780
|
United
States:
|
+1
6462543697
|
Conference
ID:
|
2384599
|
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 RMB6.8650 to US$1.00, the noon buying rate in effect on
June 30, 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,
|
|
June
30,
|
|
June
30,
|
2018
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
US$
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
174,024
|
|
501,046
|
|
72,986
|
Term deposits and
short term investments
|
912,594
|
|
941,226
|
|
137,105
|
Restricted
cash
|
269,648
|
|
245,017
|
|
35,691
|
Accounts receivable,
net
|
484,113
|
|
609,344
|
|
88,761
|
Amounts due from
related parties
|
91,228
|
|
75,889
|
|
11,054
|
Prepayment and other
current assets
|
88,963
|
|
111,296
|
|
16,212
|
Total current
assets
|
2,020,570
|
|
2,483,818
|
|
361,809
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
95,631
|
|
95,900
|
|
13,969
|
Intangible assets,
net
|
97,448
|
|
98,293
|
|
14,318
|
Goodwill
|
338,288
|
|
361,074
|
|
52,596
|
Available-for-sale
debt investments
|
1,961,474
|
|
2,273,126
|
|
331,118
|
Equity investments,
net
|
33,694
|
|
13,236
|
|
1,928
|
Deferred tax
assets
|
60,160
|
|
70,649
|
|
10,292
|
Operating lease
right-of- use assets, net**
|
-
|
|
100,122
|
|
14,584
|
Other non-current
assets
|
23,454
|
|
20,061
|
|
2,923
|
Total non-current
assets
|
2,610,149
|
|
3,032,461
|
|
441,728
|
Total
assets
|
4,630,719
|
|
5,516,279
|
|
803,537
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
loans
|
267,665
|
|
-
|
|
-
|
Accounts
payable
|
264,753
|
|
213,316
|
|
31,073
|
Amounts due to related
parties
|
25,218
|
|
18,683
|
|
2,721
|
Advances from
customers
|
54,601
|
|
71,481
|
|
10,412
|
Taxes
payable
|
101,386
|
|
129,324
|
|
18,838
|
Salary and welfare
payable
|
132,316
|
|
134,181
|
|
19,547
|
Deposits from proposed
buyers of investments in Particle
|
-
|
|
687,470
|
|
100,141
|
Accrued expenses and
other current liabilities
|
227,328
|
|
589,616
|
|
85,888
|
Operating
lease liabilities**
|
-
|
|
33,996
|
|
4,952
|
Total current
liabilities
|
1,073,267
|
|
1,878,067
|
|
273,572
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
140,960
|
|
171,065
|
|
24,918
|
Long-term
liabilities
|
26,131
|
|
26,131
|
|
3,806
|
Operating
lease liabilities**
|
-
|
|
67,830
|
|
9,881
|
Total non-current
liabilities
|
167,091
|
|
265,026
|
|
38,605
|
Total
liabilities
|
1,240,358
|
|
2,143,093
|
|
312,177
|
Shareholders'
equity:
|
|
|
|
|
|
Phoenix New Media
Limited shareholders' equity:
|
|
|
|
|
|
Class A ordinary
shares
|
17,487
|
|
17,499
|
|
2,549
|
Class B ordinary
shares
|
22,053
|
|
22,053
|
|
3,212
|
Additional paid-in
capital
|
1,604,588
|
|
1,605,745
|
|
233,903
|
Statutory
reserves
|
87,620
|
|
87,620
|
|
12,763
|
Retained
earnings/(accumulated deficits)
|
159,621
|
|
(30,231)
|
|
(4,404)
|
Accumulated other
comprehensive income
|
1,188,358
|
|
1,468,429
|
|
213,901
|
Total Phoenix New
Media Limited shareholders' equity
|
3,079,727
|
|
3,171,115
|
|
461,924
|
Noncontrolling
interests
|
310,634
|
|
202,071
|
|
29,436
|
Total
shareholders' equity
|
3,390,361
|
|
3,373,186
|
|
491,360
|
Total liabilities
and shareholders' equity
|
4,630,719
|
|
5,516,279
|
|
803,537
|
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 26, 2019.
|
** The Company
adopted the new leasing guidance (ASU 2016-2) started from January
1, 2019, which requires that a lessee recognize the assets and
liabilities that arise from operating leases. The Company
recognized a right-of-use asset and a liability relating to lease
payments (the Lease Liability)
in the statements of financial position for lease contracts having
terms beyond 12 months period.
|
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
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
2018
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising revenues
|
317,344
|
|
215,984
|
|
324,738
|
|
47,303
|
|
560,792
|
|
540,722
|
|
78,765
|
Paid service
revenues
|
46,538
|
|
68,890
|
|
70,338
|
|
10,246
|
|
88,013
|
|
139,228
|
|
20,281
|
Total
revenues
|
363,882
|
|
284,874
|
|
395,076
|
|
57,549
|
|
648,805
|
|
679,950
|
|
99,046
|
Cost of
revenues
|
(134,296)
|
|
(178,145)
|
|
(184,951)
|
|
(26,941)
|
|
(263,040)
|
|
(363,096)
|
|
(52,891)
|
Gross
profit
|
229,586
|
|
106,729
|
|
210,125
|
|
30,608
|
|
385,765
|
|
316,854
|
|
46,155
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses
|
(109,823)
|
|
(120,572)
|
|
(163,655)
|
|
(23,839)
|
|
(241,042)
|
|
(284,227)
|
|
(41,402)
|
General and
administrative expenses
|
(41,808)
|
|
(48,852)
|
|
(65,380)
|
|
(9,524)
|
|
(76,206)
|
|
(114,232)
|
|
(16,640)
|
Technology and
product development
expenses
|
(48,523)
|
|
(59,441)
|
|
(60,121)
|
|
(8,758)
|
|
(96,935)
|
|
(119,562)
|
|
(17,416)
|
Total operating
expenses
|
(200,154)
|
|
(228,865)
|
|
(289,156)
|
|
(42,121)
|
|
(414,183)
|
|
(518,021)
|
|
(75,458)
|
Income/(loss) from
operations
|
29,432
|
|
(122,136)
|
|
(79,031)
|
|
(11,513)
|
|
(28,418)
|
|
(201,167)
|
|
(29,303)
|
Other
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
13,550
|
|
8,658
|
|
4,637
|
|
675
|
|
26,488
|
|
13,295
|
|
1,937
|
Interest
expense
|
(3,389)
|
|
(2,903)
|
|
(1,730)
|
|
(252)
|
|
(8,022)
|
|
(4,633)
|
|
(675)
|
Foreign
currency exchange gain/(loss)
|
16,231
|
|
(2,167)
|
|
2,922
|
|
426
|
|
1,100
|
|
755
|
|
110
|
(Loss)/income
from equity investments, net
of impairments
|
(435)
|
|
(3,968)
|
|
521
|
|
76
|
|
(2,865)
|
|
(3,447)
|
|
(502)
|
Others,
net
|
2,128
|
|
2,241
|
|
4,789
|
|
698
|
|
6,221
|
|
7,030
|
|
1,024
|
Income/(loss)
before tax
|
57,517
|
|
(120,275)
|
|
(67,892)
|
|
(9,890)
|
|
(5,496)
|
|
(188,167)
|
|
(27,409)
|
Income tax
expense
|
(8,498)
|
|
(7,461)
|
|
(2,977)
|
|
(434)
|
|
(3,774)
|
|
(10,438)
|
|
(1,520)
|
Net
income/(loss)
|
49,019
|
|
(127,736)
|
|
(70,869)
|
|
(10,324)
|
|
(9,270)
|
|
(198,605)
|
|
(28,929)
|
Net loss
attributable to noncontrolling
interests
|
222
|
|
7,999
|
|
754
|
|
110
|
|
971
|
|
8,753
|
|
1,275
|
Net income/(loss)
attributable to Phoenix
New Media Limited
|
49,241
|
|
(119,737)
|
|
(70,115)
|
|
(10,214)
|
|
(8,299)
|
|
(189,852)
|
|
(27,654)
|
Net
income/(loss)
|
49,019
|
|
(127,736)
|
|
(70,869)
|
|
(10,324)
|
|
(9,270)
|
|
(198,605)
|
|
(28,929)
|
Other
comprehensive income/(loss), net of
tax: fair value remeasurement for
available-for-sale investments
|
5,287
|
|
725,403
|
|
(463,083)
|
|
(67,456)
|
|
51,651
|
|
262,320
|
|
38,211
|
Other
comprehensive income/(loss), net of
tax: foreign currency translation
adjustment
|
49,376
|
|
(27,193)
|
|
44,944
|
|
6,547
|
|
14,362
|
|
17,751
|
|
2,586
|
Comprehensive
income/(loss)
|
103,682
|
|
570,474
|
|
(489,008)
|
|
(71,233)
|
|
56,743
|
|
81,466
|
|
11,868
|
Comprehensive
loss attributable to
noncontrolling interests
|
222
|
|
7,999
|
|
754
|
|
110
|
|
971
|
|
8,753
|
|
1,275
|
Comprehensive
income/(loss) attributable
to Phoenix New Media
Limited
|
103,904
|
|
578,473
|
|
(488,254)
|
|
(71,123)
|
|
57,714
|
|
90,219
|
|
13,143
|
Net income/(loss)
attributable to Phoenix
New Media Limited
|
49,241
|
|
(119,737)
|
|
(70,115)
|
|
(10,214)
|
|
(8,299)
|
|
(189,852)
|
|
(27,654)
|
Net
income/(loss) per Class A and Class B
ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.08
|
|
(0.21)
|
|
(0.12)
|
|
(0.02)
|
|
(0.01)
|
|
(0.33)
|
|
(0.05)
|
Diluted
|
0.08
|
|
(0.21)
|
|
(0.12)
|
|
(0.02)
|
|
(0.01)
|
|
(0.33)
|
|
(0.05)
|
Net
income/(loss) per ADS (1 ADS represents
8 Class A ordinary shares):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.68
|
|
(1.65)
|
|
(0.96)
|
|
(0.14)
|
|
(0.11)
|
|
(2.61)
|
|
(0.38)
|
Diluted
|
0.67
|
|
(1.65)
|
|
(0.96)
|
|
(0.14)
|
|
(0.11)
|
|
(2.61)
|
|
(0.38)
|
Weighted average
number of Class A and
Class B ordinary shares used in
computing
net income/(loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
580,976,381
|
|
582,187,109
|
|
582,267,440
|
|
582,267,440
|
|
580,102,974
|
|
582,227,496
|
|
582,227,496
|
Diluted
|
584,945,765
|
|
582,187,109
|
|
582,267,440
|
|
582,267,440
|
|
580,102,974
|
|
582,227,496
|
|
582,227,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phoenix New Media
Limited
|
Condensed Segments
Information
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
2018
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
317,344
|
|
215,984
|
|
324,738
|
|
47,303
|
|
560,792
|
|
540,722
|
|
78,765
|
Paid
services
|
46,538
|
|
68,890
|
|
70,338
|
|
10,246
|
|
88,013
|
|
139,228
|
|
20,281
|
Total
revenues
|
363,882
|
|
284,874
|
|
395,076
|
|
57,549
|
|
648,805
|
|
679,950
|
|
99,046
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
110,909
|
|
140,060
|
|
146,869
|
|
21,394
|
|
218,362
|
|
286,929
|
|
41,796
|
Paid
services
|
23,387
|
|
38,085
|
|
38,082
|
|
5,547
|
|
44,678
|
|
76,167
|
|
11,095
|
Total cost of
revenues
|
134,296
|
|
178,145
|
|
184,951
|
|
26,941
|
|
263,040
|
|
363,096
|
|
52,891
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
206,435
|
|
75,924
|
|
177,869
|
|
25,909
|
|
342,430
|
|
253,793
|
|
36,969
|
Paid
services
|
23,151
|
|
30,805
|
|
32,256
|
|
4,699
|
|
43,335
|
|
63,061
|
|
9,186
|
Total gross
profit
|
229,586
|
|
106,729
|
|
210,125
|
|
30,608
|
|
385,765
|
|
316,854
|
|
46,155
|
Phoenix New Media
Limited
|
Condensed
Information of Cost of Revenues
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
2018
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue sharing
fees
|
11,460
|
|
17,329
|
|
13,676
|
|
1,992
|
|
20,077
|
|
31,005
|
|
4,516
|
Content and
operational costs
|
108,937
|
|
146,961
|
|
156,346
|
|
22,774
|
|
214,721
|
|
303,307
|
|
44,182
|
Bandwidth
costs
|
13,899
|
|
13,855
|
|
14,929
|
|
2,175
|
|
28,242
|
|
28,784
|
|
4,193
|
Total cost of
revenues
|
134,296
|
|
178,145
|
|
184,951
|
|
26,941
|
|
263,040
|
|
363,096
|
|
52,891
|
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
June 30, 2018
|
|
Three Months Ended
March 31, 2019
|
|
Three Months Ended
June 30, 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
|
229,586
|
|
634
|
(1)
|
230,220
|
|
106,729
|
|
1,441
|
(1)
|
108,170
|
|
210,125
|
|
1,893
|
(1)
|
212,018
|
Gross
margin
|
63.1%
|
|
|
|
63.3%
|
|
37.5%
|
|
|
|
38.0%
|
|
53.2%
|
|
|
|
53.7%
|
Income/(loss)
from
operations
|
29,432
|
|
3,390
|
(1)
|
32,822
|
|
(122,136)
|
|
3,987
|
(1)
|
(118,149)
|
|
(79,031)
|
|
4,227
|
(1)
|
(74,804)
|
Operating
margin
|
8.1%
|
|
|
|
9.0%
|
|
(42.9)%
|
|
|
|
(41.5)%
|
|
(20.0)%
|
|
|
|
(18.9)%
|
|
|
|
3,390
|
(1)
|
|
|
|
|
3,987
|
(1)
|
|
|
|
|
4,227
|
(1)
|
|
|
|
|
435
|
(2)
|
|
|
|
|
3,968
|
(2)
|
|
|
|
|
(521)
|
(2)
|
|
Net
income/(loss)
attributable to
Phoenix New
Media Limited
|
49,241
|
|
3,825
|
|
53,066
|
|
(119,737)
|
|
7,955
|
|
(111,782)
|
|
(70,115)
|
|
3,706
|
|
(66,409)
|
Net margin
|
13.5%
|
|
|
|
14.6%
|
|
(42.0)%
|
|
|
|
(39.2)%
|
|
(17.7)%
|
|
|
|
(16.8)%
|
Net income/(loss)
per
ADS-diluted
|
0.67
|
|
|
|
0.73
|
|
(1.65)
|
|
|
|
(1.54)
|
|
(0.96)
|
|
|
|
(0.91)
|
Weighted average
number of ADSs
used in computing
diluted net
income/(loss) per
ADS
|
73,118,221
|
|
|
|
73,118,221
|
|
72,773,389
|
|
|
|
72,773,389
|
|
72,783,430
|
|
|
|
72,783,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation
|
(2) Loss/(income)
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-second-quarter-2019-unaudited-financial-results-300899962.html
SOURCE Phoenix New Media Limited