BEIJING, March 23, 2020 /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 fourth quarter and fiscal year ended December 31, 2019.
Mr. Shuang Liu, CEO of Phoenix
New Media, commented, "We are so pleased to deliver
better-than-expected top-line performance for the fourth quarter of
2019. During the quarter, our consistent coverage of impactful
social events further cemented our market leadership while boosting
our operating metrics in turn. Additionally, we successfully
enhanced our brand influence and heightened our dominance in key
content verticals through the organization of multiple large-scale
offline events during the quarter. Going forward, we remain
committed to executing our business strategies and delivering
strong results."
Mr. Liu continued, "At the start of 2020, we moved swiftly to
protect and promote the wellbeing of our employees, our users, and
the society at large in response to the coronavirus outbreak. To
keep our users informed, we have maintained a consistent stream of
authentic, professional, and in-depth news coverage. Moreover, to
uphold our social responsibility, we were among the first batch of
internet companies to donate RMB1.0
million in support of medical workers on the frontlines. In
the near term, we are mindful of the headwinds that will inevitably
occur as domestic companies reevaluate their advertising budgets
due to the impacts of the epidemic. Nevertheless, our focus on
creating premium content, augmenting our robust brand influence,
and generating highly relevant sales leads will remain attractive
to those advertisers who are focused on maximizing their ROI and
operating under their budgetary constraints. In the long run, we
remain convinced of the new media industry and our own company's
upward growth trajectory."
Mr. Edward Lu, CFO of Phoenix New
Media, further stated, "In the fourth quarter of 2019, our total
revenues increased by 17.9% year over year to
RMB470.9 million. During the
quarter, total net advertising revenues increased by 11.0% ,
and total paid services revenues increased by 75.1% year over
year, mainly driven by the consolidation of revenues from Tianbo
and Tadu. As we assess and monitor the financial impact of the
COVID-19 outbreak, we have started to implement several cost
restructuring initiatives to further optimize our operating
efficiency. Going forward, we plan to prioritize the returns on our
investments in user acquisition, content development, and new
project adoption. We are confident that this investment strategy
will enable us to improve our overall profitability and generate
value for our shareholders in the long term."
Fourth Quarter 2019 Financial Results
REVENUES
Total revenues in the fourth quarter of 2019 increased by 17.9%
to RMB470.9 million (US$67.6 million) from RMB399.2 million in the same period of 2018. This
increase was caused by the addition of RMB70.5 million (US$10.1
million) in consolidated revenues from Beijing Yitian
Xindong Network Technology Co., Ltd. ("Yitian Xindong" or
"Tadu") during the fourth quarter of 2019, which has been
consolidated starting from December 28,
2018. The increase was also caused by the addition of
RMB83.4 million (US$12.0 million) in consolidated revenues from
Beijing Fenghuang Tianbo Network Technology Co., Ltd.
("Tianbo") during the fourth quarter of 2019, which has been
consolidated starting from April 1, 2019. The Company's
total revenues from traditional business in the fourth quarter of
2019 decreased by 20.6% due to the macroeconomic uncertainties and
increased competition.
Net advertising revenues in the fourth quarter of 2019
increased by 11.0% to RMB395.2 million (US$56.8 million) from RMB355.9 million in the same period of 2018. The
increase was primarily attributable to the consolidation of
advertising revenues from Tianbo and Tadu. The Company's net
advertising revenues from traditional business in the fourth
quarter of 2019 decreased by 20.7% due to the macroeconomic
uncertainties and intensified competition.
Paid services revenues[1] in the fourth quarter
of 2019 increased by 75.1% to RMB75.7
million (US$10.9 million) from
RMB43.3 million in the same period of
2018. Revenues from paid contents in the fourth quarter of 2019
increased by 172.2% to RMB59.2
million (US$8.5 million) from
RMB21.8 million in the same period of
2018, primarily attributable to the consolidation of digital
reading revenues from Tadu. Revenues from games in the fourth
quarter of 2019 increased by 140.3% to RMB6.0 million (US$0.9
million) from RMB 2.5 million
in the same period of 2018. Revenues from MVAS in the fourth
quarter of 2019 decreased by 82.7% to RMB2.2
million (US$0.3 million) from
RMB13.0 million in the same period of
2018. Revenues from others in the fourth quarter of 2019 increased
by 37.9% to RMB8.3 million
(US$1.2 million) from RMB6.0 million in the same period of 2018, which
was mainly caused by the increase in revenues from E-commerce and
online real estate related services.
COST OF REVENUES
Cost of revenues in the fourth quarter of 2019 increased by
16.4% to RMB210.9 million
(US$30.3 million) from RMB181.3 million in the same period of 2018. The
increase in cost of revenues was mainly due to the following:
- Content and operational costs in the fourth quarter of 2019
increased to RMB183.3 million
(US$26.3 million) from RMB153.9 million in the same period of 2018,
primarily attributable to the consolidation of content and
operational costs of Tianbo and Tadu.
- Bandwidth costs in the fourth quarter of 2019 increased to
RMB16.3 million (US$2.4 million) from RMB14.2 million in the same period of 2018,
primarily attributable to the consolidation of bandwidth costs of
Tianbo and Tadu.
The increase was partially offset by:
- Revenue sharing fees to telecom operators and channel partners
in the fourth quarter of 2019 decreased to RMB11.3 million (US$1.6 million) from RMB13.2 million in the same period of 2018,
primarily attributable to the decrease in the MVAS revenues.
Share-based compensation included in the content and operational
costs in the fourth quarter of 2019 decreased to RMB1.6 million (US$0.2
million) from RMB2.5 million
in the same period of 2018.
GROSS PROFIT
Gross profit in the fourth quarter of 2019 increased
to RMB260.0 million (US$37.3 million) from RMB218.0 million in the same period of 2018.
Gross margin in the fourth quarter of 2019 increased to 55.2%
from 54.6% in the same period of 2018, mainly attributable to the
margin contribution from Tianbo and Tadu, partially offset by a
decrease in gross margin of the Company's traditional advertising
business.
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 in the fourth quarter of 2019, which
excluded share-based compensation, increased to 55.5% from 55.2% in
the same period of 2018.
[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.
|
OPERATING EXPENSES OR GAINS AND LOSS FROM
OPERATIONS
Total operating expenses in the fourth quarter of 2019 increased
by 37.5% to RMB353.5 million
(US$50.8 million) from RMB257.0 million in the same period of 2018,
primarily attributable to the consolidation of operating expenses
from Tianbo and Tadu and the special cash compensation paid to the
Company's option holders in the fourth quarter of 2019. Share-based
compensation included in operating expenses in the fourth quarter
of 2019 was RMB5.1 million
(US$0.7 million), compared with
RMB2.1 million in the same period of
2018, which was mainly caused by those options granted by the
Company in July 2019.
Loss from operations in the fourth quarter of 2019 was
RMB93.5 million (US$13.4 million), compared to RMB39.0 million in the same period of 2018.
Operating margin in the fourth quarter of 2019 was negative 19.9%,
compared to negative 9.8% in the same period of 2018.
Non-GAAP loss from operations in the fourth quarter of 2019,
which excluded share-based compensation and changes in fair value
of financial assets-contingent returnable consideration, was
RMB86.8 million (US$12.5 million), compared to RMB34.4 million in the same period of 2018.
Non-GAAP operating margin in the fourth quarter of 2019, which
excluded share-based compensation and changes in fair value of
financial assets-contingent returnable consideration, was negative
18.4%, compared to negative 8.6% in the same period of 2018.
OTHER INCOME OR
LOSS
Other income or loss reflects gain on disposal of
available-for-sale debt investments, interest income, interest
expense, foreign currency exchange gain or loss, income or loss
from equity method investments, net of impairments, gain on
disposal of convertible loans due from a related party and others,
net[2]. Total net other income in the fourth quarter of
2019 was RMB1,017.2 million
(US$146.1 million), compared to
RMB19.7 million in the same period of
2018.
- Gain on disposal of available-for-sale debt investments in the
fourth quarter of 2019 was RMB1,001.2
million (US$143.8 million),
which represented the gain from the disposal of part of the
Company's investments in Particle, which was recorded as
available-for sale debt investments in the balance sheet. No such
gain was recorded in the same period of 2018.
- Interest income in the fourth quarter of 2019 increased to
RMB7.0 million (US$1.0 million) from RMB8.6 million in the same period of 2018.
- Interest expense in the fourth quarter of 2019 decreased to
RMB0.2 million (US$0.03 million), from RMB2.4 million in the same period of 2018, which
was primarily due to the decrease in outstanding short-term bank
loans as the Company repaid all of its short-term bank loans in the
second quarter of 2019.
- Foreign currency exchange gain in the fourth quarter of 2019
was RMB1.0 million (US$0.1 million), compared to foreign currency
exchange loss of RMB0.3 million in
the same period of 2018.
- Income from equity method investments, net of impairments, in
the fourth quarter of 2019 was nil, compared to RMB4.0 million in the same period of
2018.
- Others, net in the fourth quarter of 2019 decreased to
RMB8.2 million (US$1.2 million) from RMB9.9 million in the same period of 2018, mainly
attributable to more government subsidies received in the same
period of 2018.
[2] "Others,
net" primarily consists of government subsidies and litigation loss
provisions.
|
NET INCOME OR LOSS ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net income attributable to Phoenix New Media Limited in the
fourth quarter of 2019 was RMB911.8 million (US$131.0 million), compared to net loss
attributable to Phoenix New Media Limited of RMB38.3 million in the same period of 2018.
Net margin in the fourth quarter of 2019 was positive 193.6%,
compared to negative 9.6% in the same period of 2018. Net
income per diluted ADS[3] in the fourth quarter of
2019 was RMB12.53 (US$1.80),
compared to net loss per diluted ADS of RMB0.53 in the same period of 2018.
Non-GAAP net loss attributable to Company in the fourth quarter
of 2019, which excluded share-based compensation, income or loss
from equity method investments, net of impairments, gain on
disposal of available-for-sale debt investments and changes in fair
value of financial assets-contingent returnable consideration, was
RMB82.7 million (US$11.9 million), compared to Non-GAAP net
loss of RMB37.7 million
attributable to the Company in the same period of 2018. Non-GAAP
net margin in the fourth quarter of 2019 was negative 17.6%,
compared to negative 9.4% in the same period of 2018. Non-GAAP
net loss per diluted ADS in the fourth quarter of 2019 was
RMB1.14 (US$0.16), compared to
Non-GAAP net loss per diluted ADS of RMB0.52 in the same period of 2018.
For the fourth quarter of 2019, the Company's weighted average
number of ADSs used in the computation of diluted net loss per ADS
was 72,790,541. As of December 31,
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.
|
Full Year 2019 Financial Results
REVENUES
Total revenues in 2019 increased by 11.2% to RMB1.53 billion (US$219.9
million) from RMB1.38 billion
in 2018, primarily attributable to the consolidation of revenues
from Tianbo and Tadu, partially offset by the decrease in the
Company's revenues from traditional business.
Net advertising revenues in 2019 increased by 5.4% to
RMB1.26 billion (US$181.5 million) from RMB1.20 billion in 2018, primarily attributable
to the consolidation of advertising revenues from Tianbo and Tadu.
The Company's net advertising revenues from traditional business
decreased by 20.4% from 2018 to 2019 due to the macroeconomic
uncertainties and increased competition.
Paid services revenues in 2019 increased by 49.4% to
RMB267.6 million (US$38.4 million) from RMB179.1 million in 2018, primarily attributable
to the consolidation of digital reading revenues from Tadu.
COST OF REVENUES
Cost of revenues in 2019 increased by 28.8% to
RMB768.3 million (US$110.4 million) from RMB596.5 million in 2018, primarily attributable
to the consolidation of content and operational costs of Tianbo and
Tadu. Share-based compensation included in cost of revenues in 2019
was RMB6.8 million (US$1.0 million) compared to RMB3.7 million in 2018, primarily attributable to
the restricted share units granted to some employees in 2019 under
the restricted share unit scheme adopted in 2018 by Fread Limited,
a subsidiary of the Company, the share options granted to employees
by Tadu under an option scheme adopted in December 2018, and
the options granted by the Company in July
2019.
Gross profit in 2019 decreased to RMB762.8 million (US$109.6 million) from RMB780.8 million in 2018. Gross margin in
2019 decreased to 49.8% from 56.7% in 2018,
mainly attributable to a decrease in gross margin of the Company's
traditional advertising business, partially offset by the margin
contribution from Tianbo and Tadu.
OPERATING EXPENSES OR GAINS AND LOSS FROM
OPERATIONS
Total operating expense in 2019 increased to RMB1,068.3 million (US$153.4 million) from RMB904.8 million in 2018, primarily attributable
to the consolidation of operating expenses from Tianbo and Tadu,
which was partially offset by the gain of RMB62.1 million (US$8.9
million) arising from the changes in fair value of financial
assets-contingent returnable consideration. Share-based
compensation included in operating expenses was RMB13.4 million (US$1.9
million) in 2019, compared to RMB10.2
million in 2018, mainly caused by the options granted by the
Company in 2019.
Changes in fair value of financial assets-contingent returnable
consideration in the fiscal year of 2019 was a gain of
RMB62.1 million (US$8.9 million), which represented the
changes in fair value of the Company's right to receive the
contingent returnable consideration in relation to the acquisition
of Tadu, subject to certain price adjustment mechanisms based on
the operating and financial performance of Tadu in 2019 and 2020.
The Company recorded the financial assets-contingent returnable
consideration as prepayments and other current assets in its
balance sheet. Based on the estimated operating and financial
performance of Tadu in 2019, the Company has adjusted the fair
value of financial assets-contingent returnable consideration and
recognized the changes in fair value in the consolidated statements
of comprehensive income/(loss) for 2019.
Loss from operations in 2019 was RMB305.5
million (US$43.9 million),
compared to RMB124.0 million in
2018. Operating margin in 2019 was
negative 20.0%, compared to negative 9.0% in
2018.
Non-GAAP loss from operations in 2019, which excluded
share-based compensation and changes in fair value of financial
assets-contingent returnable consideration, was RMB347.3 million (US$49.9 million), compared to a non-GAAP loss
from operations of RMB110.0 million
in 2018. Non-GAAP operating margin in 2019, which excluded
share-based compensation and changes in fair value of financial
assets-contingent returnable consideration, was negative 22.7%,
compared to negative 8.0% in 2018.
NET INCOME OR LOSS ATTRIBUTABLE TO
PHOENIX NEW MEDIA
LIMITED
Net income attributable to Company in 2019 was RMB727.8 million (US$104.5
million), compared to net loss attributable to the Company
of RMB63.2 million in 2018. Net
margin in 2019 was positive 47.5%, compared negative 4.6% in 2018.
Net income per diluted ADS in 2019 was RMB10.00 (US$1.44),
compared to a net loss per diluted ADS of RMB0.87 in 2018.
Non-GAAP net loss attributable to the Company in the fiscal year
of 2019, which excluded share-based compensation, income or loss
from equity method investments, net of impairments, gain on
disposal of available-for-sale debt investments and changes in fair
value of financial assets-contingent returnable consideration, was
RMB311.7 million (US$44.8 million), compared to non-GAAP net loss
attributable to the Company of RMB54.6
million in 2018. Non-GAAP net margin in the fiscal year of
2019 was negative 20.4% compared to negative 4.0% in 2018. Non-GAAP
net loss per diluted ADS in 2019 was RMB4.28 (US$0.62),
compared to Non-GAAP net loss per diluted ADS of RMB0.75 in 2018.
CERTAIN BALANCE SHEET ITEMS
As of December 31, 2019, the
Company's cash and cash equivalents, term deposits and short term
investments and restricted cash were RMB1.70 billion (US$243.6 million), which included
RMB30.1 million (US$4.3 million) from Tadu and RMB109.7 million (US$15.8
million) from Tianbo.
As previously announced by the Company, the Company entered into
a share purchase agreement (the "SPA") with Run Liang Tai and its
designated entities (the "Proposed Buyers") on March 22, 2019
and entered into a supplemental agreement (the "Supplemental
Agreement") to the SPA on July 23, 2019 for its proposed sale
of 34% of the total outstanding shares of Particle Inc. ("Particle"
or "Yidian") (the "Proposed Transaction"). According to the
Supplemental Agreement, the Company agreed to increase the number
of shares of Particle to be transferred to the Proposed Buyers from
199,866,509 shares to 212,358,165 shares while the total purchase
price would remain unchanged at US$448
million. In addition, the Company agreed that the Proposed
Buyers may pay the purchase price in several instalments. After the
Company executed the Supplemental Agreement, two shareholders of
Particle, Long De Cheng Zhang Culture Communication (Tianjin) Co., Ltd., which later transferred
its shares in Particle to Long De Cheng
Zhang (Tianjin) Investment
Management Center, and Long De Holdings (Hong Kong) Co., Limited (collectively, the
"Long De Entities"), notified the Company that they intended to
exercise their co-sale rights under Particle's existing shareholder
agreement. On January 20, 2020, the
Company entered into an agreement with the Long De Entities, or the
Co-Sale Agreement. Pursuant to the Co-Sale Agreement, the Long De
Entities would sell approximately 9.8 million preferred shares of
Particle, or the Long De Sale Shares, to the Proposed Buyers for a
total consideration of approximately US$20.7
million in cash and the number of Particle shares to be sold
by the Company would be reduced accordingly. As a result, the
Company would be expected to sell a total of 29.19% of the total
outstanding shares of Particle (which reflected the completion of
the issuance of additional shares under Particle's share incentive
plan) to the Proposed Buyers for a total consideration of
approximately US$427.3 million in
cash under the original SPA as amended by the Supplemental
Agreement and the Co-Sale Agreement. The Co-Sale Agreement is
subject to approval by the shareholders of the Company's parent
company, Phoenix Media Investment (Holdings) Limited.
The Company has completed delivery of the first batch of
94,802,752 Particle shares to the Proposed Buyers pursuant to the
Supplemental Agreement in the fourth quarter of 2019, corresponding
to US$200 million of consideration fully received before
August 10, 2019 for such shares,
which resulted in the recognition of gain on disposal of
available-for-sale debt investments of RMB1,001.2 million (US$143.8 million) in the fourth quarter of 2019.
The Company has received further deposit of US$50 million for the second batch of 107,760,424
Particle shares, corresponding to US$227.3 million of consideration, expected
to be delivered to the Proposed Buyers in or before August 2020. There are still uncertainties as to
the completion of the remaining part of the Proposed
Transaction.
The fair value of the remaining available-for-sale debt
investments in Particle of the Company was RMB2,012.5 million (US$289.1 million) as of December 31, 2019, compared to RMB3,153.2 million as of September 30, 2019, as the Company had
transferred the first batch of Particle shares to the Proposed
Buyers.
Declaration and Payment of Special Cash Dividends and
Special Cash Compensation
On November 14, 2019, the Company announced that
its Board of Directors declared a special cash dividend of
US$0.1714 per ordinary share,
equivalent to US$1.3712 per American
depositary share ("ADS"), totalling approximately
US$100 million, payable on December 13, 2019 to holders
of record of the Company's ordinary shares at the close of business
on November 29, 2019 (the "Record Date").
JPMorgan Chase Bank, N.A., or JP Morgan, as depositary of the ADSs, paid a cash distribution of
US$1.3512 per ADS to the ADS holders
of record at the close of business on November 29,
2019 after receipt of cash dividends on the
Company's ordinary shares and deduction of its fees and expenses.
JP Morgan paid the cash distribution to the Company's ADS holders
on December 13, 2019.
In connection with the declaration of special cash dividend, the
Board of Directors also approved a special cash compensation to the
Company's option holders in the aggregate amount of approximately
US$8.3 million, part of which
have been paid in 2019.
Business Outlook
For the first quarter of 2020, the Company expects its
total revenues to be between RMB252.8
million and RMB272.8 million;
net advertising revenues are expected to be between RMB211.8 million and RMB226.8 million; and paid services revenues
are expected to be between RMB41.0
million and RMB46.0
million.
All of the above forecasts reflect the Company's management's
current and preliminary view, which is subject to change and
substantial uncertainty, particularly in view of the potential
impact of the COVID-19, the effects of which are difficult to
analyse and predict.
Conference Call Information
The Company will hold a conference call at 9:00 p.m. U.S. Eastern Time on March 23, 2020, (March
24, 2020 at 9:00 a.m.
Beijing/Hong Kong time) to discuss its fourth
quarter and fiscal year 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:
8475057
A replay of the call will be available through March 31, 2020, 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
646 254 3697
Conference
ID:
8475057
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 and changes in fair value of
financial assets-contingent returnable consideration. 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, income or loss from equity method investments, net of
impairments, gain on disposal of available-for-sale debt
investments, and changes in fair value of financial
assets-contingent returnable consideration. 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, income or loss
from equity method investments, net of impairments, which have been
and will continue to be significant recurring items, and without
the effect of changes in fair value of financial assets-contingent
returnable consideration and gain on disposal of available-for-sale
debt investments, which have been significant and one-time items.
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 RMB6.9618 to US$1.00, the noon buying rate in effect on
December 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; relevant government policies and
regulations relating to the Company; and the effects of the
COVID-19 on the economy in China
in general and on the Company's business in particular. 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,
|
|
December
31,
|
|
December
31,
|
|
2018
|
2019
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
174,024
|
|
341,016
|
|
48,984
|
Term deposits and
short term investments
|
|
912,594
|
|
1,271,889
|
|
182,695
|
Restricted
cash
|
|
269,648
|
|
82,934
|
|
11,913
|
Accounts receivable,
net
|
|
484,113
|
|
638,272
|
|
91,682
|
Amounts due from
related parties
|
|
91,228
|
|
59,723
|
|
8,579
|
Prepayment and other
current assets
|
|
88,963
|
|
161,746
|
|
23,233
|
Total current
assets
|
|
2,020,570
|
|
2,555,580
|
|
367,086
|
Non-current
assets:
|
|
|
|
|
|
|
Property and
equipment, net
|
|
95,631
|
|
101,650
|
|
14,601
|
Intangible assets,
net
|
|
97,448
|
|
99,280
|
|
14,261
|
Goodwill
|
|
338,288
|
|
361,074
|
|
51,865
|
Available-for-sale
debt investments
|
|
1,961,474
|
|
2,014,537
|
|
289,370
|
Equity investments,
net
|
|
33,694
|
|
13,237
|
|
1,901
|
Deferred tax
assets
|
|
60,160
|
|
73,688
|
|
10,585
|
Operating lease
right-of- use assets, net**
|
|
-
|
|
85,790
|
|
12,323
|
Other non-current
assets
|
|
23,454
|
|
19,859
|
|
2,853
|
Total non-current
assets
|
|
2,610,149
|
|
2,769,115
|
|
397,759
|
Total
assets
|
|
4,630,719
|
|
5,324,695
|
|
764,845
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term
loans
|
|
267,665
|
|
-
|
|
-
|
Accounts
payable
|
|
264,753
|
|
259,928
|
|
37,336
|
Amounts due to
related parties
|
|
25,218
|
|
34,223
|
|
4,916
|
Advances from
customers
|
|
54,601
|
|
55,900
|
|
8,030
|
Taxes
payable
|
|
101,386
|
|
291,511
|
|
41,873
|
Salary and welfare
payable
|
|
132,316
|
|
174,902
|
|
25,123
|
Deposits in relation
to future disposal of investment in Particle
|
|
-
|
|
355,212
|
|
51,023
|
Accrued expenses and
other current liabilities
|
|
227,328
|
|
293,441
|
|
42,150
|
Operating
lease liabilities**
|
|
-
|
|
40,326
|
|
5,792
|
Total current
liabilities
|
|
1,073,267
|
|
1,505,443
|
|
216,243
|
Non-current
liabilities:
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
140,960
|
|
197,810
|
|
28,414
|
Long-term
liabilities
|
|
26,131
|
|
27,612
|
|
3,966
|
Operating
lease liabilities**
|
|
-
|
|
49,937
|
|
7,173
|
Total non-current
liabilities
|
|
167,091
|
|
275,359
|
|
39,553
|
Total
liabilities
|
|
1,240,358
|
|
1,780,802
|
|
255,796
|
Shareholders'
equity:
|
|
|
|
|
|
|
Phoenix New Media
Limited shareholders' equity:
|
|
|
|
|
|
|
Class A ordinary
shares
|
|
17,487
|
|
17,499
|
|
2,514
|
Class B ordinary
shares
|
|
22,053
|
|
22,053
|
|
3,168
|
Additional paid-in
capital
|
|
1,604,588
|
|
1,611,484
|
|
231,475
|
Statutory
reserves
|
|
87,620
|
|
88,583
|
|
12,724
|
Retained
earnings
|
|
159,621
|
|
185,196
|
|
26,602
|
Accumulated other
comprehensive income
|
|
1,188,358
|
|
1,405,814
|
|
201,932
|
Total Phoenix New
Media Limited shareholders' equity
|
|
3,079,727
|
|
3,330,629
|
|
478,415
|
Noncontrolling
interests
|
|
310,634
|
|
213,264
|
|
30,634
|
Total
shareholders' equity
|
|
3,390,361
|
|
3,543,893
|
|
509,049
|
Total liabilities
and shareholders' equity
|
|
4,630,719
|
|
5,324,695
|
|
764,845
|
|
|
|
|
|
|
|
* 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
|
|
Twelve Months
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net advertising
revenues
|
355,979
|
|
327,593
|
|
395,170
|
|
56,763
|
|
1,198,271
|
|
1,263,485
|
|
181,488
|
Paid service
revenues
|
43,255
|
|
52,626
|
|
75,723
|
|
10,877
|
|
179,108
|
|
267,577
|
|
38,435
|
Total
revenues
|
399,234
|
|
380,219
|
|
470,893
|
|
67,640
|
|
1,377,379
|
|
1,531,062
|
|
219,923
|
Cost of
revenues
|
(181,272)
|
|
(194,268)
|
|
(210,938)
|
|
(30,300)
|
|
(596,548)
|
|
(768,302)
|
|
(110,360)
|
Gross
profit
|
217,962
|
|
185,951
|
|
259,955
|
|
37,340
|
|
780,831
|
|
762,760
|
|
109,563
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
(155,522)
|
|
(154,969)
|
|
(176,587)
|
|
(25,365)
|
|
(537,562)
|
|
(615,783)
|
|
(88,452)
|
General and
administrative expenses
|
(44,670)
|
|
(43,131)
|
|
(114,425)
|
|
(16,436)
|
|
(162,568)
|
|
(271,788)
|
|
(39,039)
|
Technology and
product development expenses
|
(56,819)
|
|
(60,735)
|
|
(62,460)
|
|
(8,972)
|
|
(204,723)
|
|
(242,757)
|
|
(34,870)
|
Changes in fair value
of financial assets-contingent returnable
consideration
|
-
|
|
62,051
|
|
-
|
|
-
|
|
-
|
|
62,051
|
|
8,913
|
Total operating
expenses
|
(257,011)
|
|
(196,784)
|
|
(353,472)
|
|
(50,773)
|
|
(904,853)
|
|
(1,068,277)
|
|
(153,448)
|
Loss from
operations
|
(39,049)
|
|
(10,833)
|
|
(93,517)
|
|
(13,433)
|
|
(124,022)
|
|
(305,517)
|
|
(43,885)
|
Other
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
8,608
|
|
8,106
|
|
7,006
|
|
1,006
|
|
47,445
|
|
28,407
|
|
4,080
|
Interest
expense
|
(2,442)
|
|
(252)
|
|
(204)
|
|
(29)
|
|
(13,544)
|
|
(5,089)
|
|
(731)
|
Foreign currency
exchange (loss)/gain
|
(317)
|
|
6,134
|
|
1,003
|
|
144
|
|
6,849
|
|
7,892
|
|
1,134
|
Income/(loss) from
equity method investments, net of impairments
|
3,977
|
|
-
|
|
-
|
|
-
|
|
5,352
|
|
(3,447)
|
|
(495)
|
Gain on disposal of
available-for-sale debt investments, net of tax
|
-
|
|
-
|
|
1,001,181
|
|
143,811
|
|
-
|
|
1,001,181
|
|
143,811
|
Gain on disposal of
convertible loans due from a related party
|
-
|
|
-
|
|
-
|
|
-
|
|
10,565
|
|
-
|
|
-
|
Others,
net
|
9,854
|
|
5,608
|
|
8,178
|
|
1,175
|
|
21,848
|
|
20,816
|
|
2,990
|
(Loss)/income
before tax
|
(19,369)
|
|
8,763
|
|
923,647
|
|
132,674
|
|
(45,507)
|
|
744,243
|
|
106,904
|
Income tax
expense
|
(20,220)
|
|
(6,732)
|
|
(3,071)
|
|
(442)
|
|
(20,105)
|
|
(20,241)
|
|
(2,908)
|
Net
(loss)/income
|
(39,589)
|
|
2,031
|
|
920,576
|
|
132,232
|
|
(65,612)
|
|
724,002
|
|
103,996
|
Net loss/(income)
attributable to noncontrolling interests
|
1,292
|
|
3,896
|
|
(8,822)
|
|
(1,267)
|
|
2,390
|
|
3,827
|
|
550
|
Net (loss)/income
attributable to Phoenix New Media Limited
|
(38,297)
|
|
5,927
|
|
911,754
|
|
130,965
|
|
(63,222)
|
|
727,829
|
|
104,546
|
Net
(loss)/income
|
(39,589)
|
|
2,031
|
|
920,576
|
|
132,232
|
|
(65,612)
|
|
724,002
|
|
103,996
|
Other comprehensive
income, net of tax: fair value remeasurement
for available-for-sale debt investments
|
462,558
|
|
734,931
|
|
191,511
|
|
27,509
|
|
566,320
|
|
1,188,762
|
|
170,755
|
Other comprehensive
loss, net of tax: reclassification from disposal
of available-for-sale debt investments
|
-
|
|
-
|
|
(1,008,795)
|
|
(144,904)
|
|
-
|
|
(1,008,795)
|
|
(144,904)
|
Other comprehensive
(loss)/ income, net of tax: foreign currency
translation adjustment
|
(2,534)
|
|
51,044
|
|
(31,306)
|
|
(4,497)
|
|
51,794
|
|
37,489
|
|
5,385
|
Comprehensive
income
|
420,435
|
|
788,006
|
|
71,986
|
|
10,340
|
|
552,502
|
|
941,458
|
|
135,232
|
Comprehensive
loss/(income) attributable to noncontrolling interests
|
1,292
|
|
3,896
|
|
(8,822)
|
|
(1,267)
|
|
2,390
|
|
3,827
|
|
550
|
Comprehensive
income attributable to Phoenix New Media Limited
|
421,727
|
|
791,902
|
|
63,164
|
|
9,073
|
|
554,892
|
|
945,285
|
|
135,782
|
Net (loss)/income
attributable to Phoenix New Media Limited
|
(38,297)
|
|
5,927
|
|
911,754
|
|
130,965
|
|
(63,222)
|
|
727,829
|
|
104,546
|
Net (loss)/income per
Class A and Class B ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
(0.07)
|
|
0.01
|
|
1.57
|
|
0.22
|
|
(0.11)
|
|
1.25
|
|
0.18
|
Diluted
|
(0.07)
|
|
0.01
|
|
1.57
|
|
0.22
|
|
(0.11)
|
|
1.25
|
|
0.18
|
Net (loss)/income per
ADS (1 ADS represents 8 Class A ordinary shares):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
(0.53)
|
|
0.08
|
|
12.53
|
|
1.80
|
|
(0.87)
|
|
10.00
|
|
1.44
|
Diluted
|
(0.53)
|
|
0.08
|
|
12.53
|
|
1.80
|
|
(0.87)
|
|
10.00
|
|
1.44
|
Weighted average
number of Class A and Class B ordinary shares
used in computing net (loss)/income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
582,137,314
|
|
582,324,325
|
|
582,324,325
|
|
582,324,325
|
|
581,084,453
|
|
582,275,800
|
|
582,275,800
|
Diluted
|
582,137,314
|
|
582,324,325
|
|
582,324,325
|
|
582,324,325
|
|
581,084,453
|
|
582,275,800
|
|
582,275,800
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 26, 2019.
|
Phoenix New Media
Limited
|
Condensed Segments
Information
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net advertising
service
|
355,979
|
|
327,593
|
|
395,170
|
|
56,763
|
|
1,198,271
|
|
1,263,485
|
|
181,488
|
Paid
services
|
43,255
|
|
52,626
|
|
75,723
|
|
10,877
|
|
179,108
|
|
267,577
|
|
38,435
|
Total
revenues
|
399,234
|
|
380,219
|
|
470,893
|
|
67,640
|
|
1,377,379
|
|
1,531,062
|
|
219,923
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net advertising
service
|
166,652
|
|
162,926
|
|
188,305
|
|
27,049
|
|
517,533
|
|
638,160
|
|
91,666
|
Paid
services
|
14,620
|
|
31,342
|
|
22,633
|
|
3,251
|
|
79,015
|
|
130,142
|
|
18,694
|
Total cost of
revenues
|
181,272
|
|
194,268
|
|
210,938
|
|
30,300
|
|
596,548
|
|
768,302
|
|
110,360
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net advertising
service
|
189,327
|
|
164,667
|
|
206,865
|
|
29,714
|
|
680,738
|
|
625,325
|
|
89,822
|
Paid
services
|
28,635
|
|
21,284
|
|
53,090
|
|
7,626
|
|
100,093
|
|
137,435
|
|
19,741
|
Total gross
profit
|
217,962
|
|
185,951
|
|
259,955
|
|
37,340
|
|
780,831
|
|
762,760
|
|
109,563
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 26, 2019
|
Phoenix New Media
Limited
|
Condensed
Information of Cost of Revenues
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
Revenue sharing
fees
|
13,201
|
|
17,363
|
|
11,304
|
|
1,624
|
|
47,539
|
|
59,672
|
|
8,571
|
Content and
operational costs
|
153,866
|
|
161,600
|
|
183,288
|
|
26,328
|
|
491,868
|
|
648,195
|
|
93,108
|
Bandwidth
costs
|
14,205
|
|
15,305
|
|
16,346
|
|
2,348
|
|
57,141
|
|
60,435
|
|
8,681
|
Total cost of
revenues
|
181,272
|
|
194,268
|
|
210,938
|
|
30,300
|
|
596,548
|
|
768,302
|
|
110,360
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 26, 2019
|
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
December 31, 2018
|
|
Three Months Ended
September 30, 2019
|
|
Three Months Ended
December 31, 2019
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-
GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-
GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-
GAAP
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Gross
profit
|
217,962
|
|
2,469
|
(1)
|
220,431
|
|
185,951
|
|
1,879
|
(1)
|
187,830
|
|
259,955
|
|
1,617
|
(1)
|
261,572
|
Gross
margin
|
54.6%
|
|
|
|
55.2%
|
|
48.9%
|
|
|
|
49.4%
|
|
55.2%
|
|
|
|
55.5%
|
|
|
|
4,614
|
(1)
|
|
|
|
|
5,277
|
(1)
|
|
|
|
|
6,730
|
(1)
|
|
|
|
|
-
|
(2)
|
|
|
|
|
(62,051)
|
(2)
|
|
|
|
|
-
|
(2)
|
|
Loss from
operations
|
(39,049)
|
|
4,614
|
|
(34,435)
|
|
(10,833)
|
|
(56,774)
|
|
(67,607)
|
|
(93,517)
|
|
6,730
|
|
(86,787)
|
Operating
margin
|
(9.8)%
|
|
|
|
(8.6)%
|
|
(2.8)%
|
|
|
|
(17.8)%
|
|
(19.9)%
|
|
|
|
(18.4)%
|
|
|
|
4,614
|
(1)
|
|
|
|
|
5,277
|
(1)
|
|
|
|
|
6,730
|
(1)
|
|
|
|
|
-
|
(2)
|
|
|
|
|
(62,051)
|
(2)
|
|
|
|
|
-
|
(2)
|
|
|
|
|
(3,977)
|
(3)
|
|
|
|
|
-
|
(3)
|
|
|
|
|
-
|
(3)
|
|
|
|
|
-
|
(4)
|
|
|
|
|
-
|
(4)
|
|
|
|
|
(1,001,181)
|
(4)
|
|
Net (loss)/income
attributable
to Phoenix New
Media Limited
|
(38,297)
|
|
637
|
|
(37,660)
|
|
5,927
|
|
(56,774)
|
|
(50,847)
|
|
911,754
|
|
(994,451)
|
|
(82,697)
|
Net margin
|
(9.6)%
|
|
|
|
(9.4)%
|
|
1.6%
|
|
|
|
(13.4)%
|
|
193.6%
|
|
|
|
(17.6)%
|
Net (loss)/income
per
ADS-diluted
|
(0.53)
|
|
|
|
(0.52)
|
|
0.08
|
|
|
|
(0.70)
|
|
12.53
|
|
|
|
(1.14)
|
Weighted average
number
of ADSs used in computing
diluted net (loss)/income per ADS
|
72,767,164
|
|
|
|
72,767,164
|
|
72,790,541
|
|
|
|
72,790,541
|
|
72,790,541
|
|
|
|
72,790,541
|
(1) Share-based
compensation
(2) Changes in fair value of financial assets-contingent returnable
consideration
(3) Income from equity method investments, net of
impairments
(4) Gain on disposal of available-for-sale debt
investments
Non-GAAP to GAAP reconciling items have no income tax
effect.
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2018
|
|
Twelve Months
Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-
GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-
GAAP
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Gross
profit
|
780,831
|
|
3,750
|
(1)
|
784,581
|
|
762,760
|
|
6,830
|
(1)
|
769,590
|
Gross
margin
|
56.7%
|
|
|
|
57.0%
|
|
49.8%
|
|
|
|
50.3%
|
|
|
|
13,989
|
(1)
|
|
|
|
|
20,221
|
(1)
|
|
|
|
|
-
|
(2)
|
|
|
|
|
(62,051)
|
(2)
|
|
Loss from
operations
|
(124,022)
|
|
13,989
|
|
(110,033)
|
|
(305,517)
|
|
(41,830)
|
|
(347,347)
|
Operating
margin
|
(9.0)%
|
|
|
|
(8.0)%
|
|
(20.0)%
|
|
|
|
(22.7)%
|
|
|
|
13,989
|
(1)
|
|
|
|
|
20,221
|
(1)
|
|
|
|
|
-
|
(2)
|
|
|
|
|
(62,051)
|
(2)
|
|
|
|
|
(5,352)
|
(3)
|
|
|
|
|
3,447
|
(3)
|
|
|
|
|
-
|
(4)
|
|
|
|
|
(1,001,181)
|
(4)
|
|
Net (loss)/income
attributable to Phoenix New Media Limited
|
(63,222)
|
|
8,637
|
|
(54,585)
|
|
727,829
|
|
(1,039,564)
|
|
(311,735)
|
Net margin
|
(4.6)%
|
|
|
|
(4.0)%
|
|
47.5%
|
|
|
|
(20.4)%
|
Net (loss)/income per
ADS-diluted
|
(0.87)
|
|
|
|
(0.75)
|
|
10.00
|
|
|
|
(4.28)
|
Weighted average
number of ADSs used in computing diluted net (loss)/income per
ADS
|
72,635,557
|
|
|
|
72,635,557
|
|
72,784,475
|
|
|
|
72,784,475
|
(1) Share-based
compensation
(2) Changes in fair value of financial assets-contingent
returnable consideration
(3) Loss/(income) from equity method investments, net of
impairments
(4) Gain on disposal of available-for-sale debt investments
Non-GAAP to GAAP reconciling items have no income tax
effect.
|
View original
content:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-fourth-quarter-and-fiscal-year-2019-unaudited-financial-results-301028225.html
SOURCE Phoenix New Media Limited