BEIJING, Nov 13, 2017 /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 third quarter ended September 30, 2017.
"In the third quarter of 2017, we not only delivered solid
financial and operating performance, but also achieved several
important milestones," stated Mr. Shuang
Liu, CEO of Phoenix New Media. "Among others, Yidian, a
company in which we invested and accounted for as
available-for-sale investments, received the License for Internet
News Information Service, which is the first license issued
by the Cyberspace Administration of China that covers PC, mobile and we-media
platforms since new regulations in China came into effect on June 1, 2017. This license will allow Yidian to
differentiate and gain competitive advantages over its peers,
especially on content acquisition on its we-media platform
Yidianhao. The license also
fulfills a prerequisite for an equity investment in Yidian by Long
De Cheng Zhang Culture Communication (Tianjin) Co., Ltd., which together with the
other two investors that we discussed in the second quarter, are
expected to invest approximately US$112.1
million in total at an estimated transaction valuation of
Yidian of about US$1.0 billion. We
are very pleased to have finalized this round of investments as
certain major terms, including the valuation, were negotiated late
last year.
We also further executed our content strategy during the third
quarter. We continued to be a leading news distributor in
China of major current affairs
around the world. According to a report from iResearch, during the
19th National Congress of the Communist Party of China, the growth rate of weekly active users
of our iFeng News App surpassed all of our peers and we also ranked
first on the PC platform based on the number of page views of
featured stories.
Looking ahead, we will remain focused on market share expansion.
By leveraging our professional journalism, cutting-edge technology,
extensive partnership resources as well as our branding power, we
believe we can maintain our leading position in the highly
competitive market."
Ms. Betty Ho, CFO of Phoenix New
Media, further stated, "We are delighted to have strong financial
results this quarter. Net advertising revenues increased by 17.0%
year-over-year to RMB363.1 million,
primarily driven by a 50.0% year-over-year increase in our mobile
advertising revenues. In particular, revenues from our programmatic
advertising showed robust year-over-year growth of 106.0% to
RMB142.1 million during the third
quarter, mainly resulted from our strong operations and product
optimization. Non-GAAP net income attributable to Phoenix New Media
increased by 38.9% year-over-year to RMB34.4
million. We are very pleased with the results we achieved
during the third quarter and expect our mobile advertising business
will continue to grow in line with the industry trend. On the other
hand, in order to expand our market share, we need to further
invest in traffic acquisition while adopting strict cost control
measures and closely monitoring the investment return of our
products."
Third Quarter 2017 Financial Results
REVENUES
Total revenues for the third quarter of 2017 increased by 18.2%
to RMB425.6 million (US$64.0 million) from RMB360.0 million in the third quarter of
2016.
Net advertising revenues (net of advertising agency service
fees) for the third quarter of 2017 increased by 17.0% to
RMB363.1 million (US$54.6 million) from RMB310.4 million in the third quarter of 2016,
which was primarily attributable to a 50.0% year-over-year increase
in mobile advertising revenues and partially offset by a 11.8%
year-over-year decrease in PC advertising revenues.
Paid services revenues[1] for the third quarter of
2017 increased by 25.9% to RMB62.4
million (US$9.4 million) from
RMB49.6 million in the third quarter
of 2016. Revenues from digital entertainment[2] for the
third quarter of 2017 increased by 41.8% to RMB52.6 million (US$7.9
million) from RMB37.1 million
in the third quarter of 2016. The increase was due to a 51.5%
increase in digital reading revenue to RMB
17.2 million (US$2.6 million),
which mainly resulted from stronger demand and the Company's
strategic expansion efforts, and a 37.5% increase in the MVAS
revenues related to certain short-term new business with telecom
operators. Revenues from games and others[3] for the
third quarter of 2017 decreased by 21.3% to RMB9.8 million (US$1.5
million) from RMB12.5 million
in the third quarter of 2016, which was primarily attributable to a
decrease in revenues generated from web-based games operated on the
Company's own platform.
COST OF REVENUES
Cost of revenues for the third quarter of 2017 increased by 2.9%
to RMB188.2 million (US$28.3 million) from RMB182.9 million in the third quarter of 2016,
primarily attributable to an increase in revenue sharing fees and
sales taxes and surcharges.
- Content and operational costs for the third quarter of 2017
decreased to RMB110.5 million
(US$16.6 million) from RMB119.5 million in the third quarter of 2016,
primarily attributable to a decrease in advertisement-related
content production cost and the Company's strict control of general
operation costs.
- Revenue sharing fees to telecom operators and channel partners
for the third quarter of 2017 increased to RMB27.9 million (US$4.2
million) from RMB16.6 million
in the third quarter of 2016, primarily attributable to an increase
in the sales of MVAS products.
- Bandwidth costs for the third quarter of 2017 decreased to
RMB14.1 million (US$2.1 million) from RMB16.4 million in the third quarter of 2016,
primarily due to the decrease in bandwidth purchase price as a
result of intense competition.
- Sales taxes and surcharges for the third quarter of 2017
increased to RMB35.7 million
(US$5.4 million) from RMB30.4 million in the third quarter of
2016.
- Share-based compensation included in cost of revenues was
RMB0.9 million (US$0.1 million) in the third quarter of 2017, as
compared to negative RMB5.1 million
in the third quarter of 2016 resulting from the increase of
estimated forfeiture rate of share-based awards based on the actual
forfeiture rate in the quarter.
GROSS PROFIT
Gross profit for the third quarter of 2017 increased by 34.0% to
RMB237.4 million (US$35.7 million) from RMB177.1 million in the third quarter of 2016.
Gross margin for the third quarter of 2017 increased to 55.8% from
49.2% in the third quarter of 2016. The increase in gross margin
was primarily attributable to the increase of revenues and decrease
of certain cost of revenues 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 third quarter of 2017, which
excluded share-based compensation, increased to 56.0% from 47.8% in
the third quarter of 2016.
OPERATING EXPENSES AND INCOME FROM
OPERATIONS
Total operating expenses for the third quarter of 2017 increased
by 34.7% to RMB201.9 million
(US$30.3 million) from RMB149.9 million in the third quarter of 2016,
primarily attributable to an increase in mobile traffic acquisition
expenses, which was partially offset by a decrease in bad debt
provision primarily due to the collection of RMB8.3 million of previously fully-reserved
receivables in the third quarter of 2017. Share-based compensation
included in operating expenses was RMB1.5
million (US$0.2 million) in
the third quarter of 2017, as compared to negative RMB3.1 million in the third quarter of 2016. The
increase in share-based compensation was primarily due to negative
share-based compensation expense recognized in the third quarter of
2016 reflecting an increase of estimated forfeiture rate of
share-based awards based on the actual forfeiture rate in that
quarter.
Income from operations for the third quarter of 2017 increased
by 30.3% to RMB35.5 million
(US$5.3 million) from RMB27.2 million in the third quarter of 2016.
Operating margin for the third quarter of 2017 increased to 8.3%
from 7.6% in the third quarter of 2016, which was primarily
attributable to the increase in gross profit and partially offset
by the increase in mobile traffic acquisition expenses.
Non-GAAP income from operations for the third quarter of 2017,
which excluded share-based compensation, increased by 99.1% to
RMB37.9 million (US$5.7 million) from RMB19.0 million in the third quarter of 2016.
Non-GAAP operating margin for the third quarter of 2017, which
excluded share-based compensation, increased to 8.9% from 5.3% in
the third quarter of 2016.
OTHER INCOME/(LOSS)
Other income/(loss) reflects interest income, interest expense,
foreign currency exchange gain/(loss), gain/(loss) from equity
investments, including impairments, and others, net[4].
Total other income for the third quarter of 2017 was RMB6.2 million (US$0.9
million), as compared to RMB6.7
million in the third quarter of 2016.
- Interest income for the third quarter of 2017 increased to
RMB14.9 million (US$2.2 million) from RMB7.9 million in the third quarter of 2016,
which was mainly due to the increase of interest bearing
investments and receivables in the third quarter of 2017 as
compared to that of 2016.
- Interest expense for the third quarter of 2017 increased to
RMB5.7 million (US$0.9 million), from RMB1.6 million in the third quarter of 2016,
which was primarily due to the increase in outstanding short-term
bank loans in the third quarter of 2017 as compared to that of
2016.
- Foreign currency exchange loss for the third quarter of 2017
was RMB8.9 million (US$1.3 million), as compared to foreign currency
exchange gain of RMB0.6 million in
the third quarter of 2016, which was mainly caused by the
appreciation of Renminbi against US dollars in the third quarter of
2017.
- Gain from equity investments for the third quarter of 2017,
including impairments, was RMB1.0
million (US$0.1 million), as
compared to loss from equity investments of RMB1.2 million in the third quarter of 2016.
- Others, net, for the third quarter of 2017 increased to
RMB4.9 million (US$0.7 million), from RMB1.0 million in the third quarter of 2016,
which was primarily attributable to the government subsidies
received in the third quarter of 2017.
NET INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net income attributable to Phoenix New Media Limited for the
third quarter of 2017 increased by 3.8 % to RMB32.9 million (US$4.9
million) from RMB31.7 million
in the third quarter of 2016. Net margin for the third quarter of
2017 decreased to 7.7% from 8.8% in the third quarter of 2016. Net
income per diluted ADS[5] in the third quarter of 2017
increased 3.7% to RMB0.46
(US$0.07) from RMB0.44 in the third quarter of 2016.
Non-GAAP net income attributable to Phoenix New Media Limited
for the third quarter of 2017, which excluded share-based
compensation and gain/(loss) from equity investments, including
impairments, increased by 38.9% to RMB34.4
million (US$5.2 million) from
RMB24.8 million in the third quarter
of 2016. Non-GAAP net margin for the third quarter of 2017
increased to 8.1% from 6.9% in the third quarter of 2016. Non-GAAP
net income per diluted ADS in the third quarter of 2017 increased
by 38.8% to RMB0.48 (US$0.07) from RMB0.34 in the third quarter of 2016.
For the third quarter of 2017, the Company's weighted average
number of ADSs used in the computation of diluted net income per
ADS was 72,227,027. As of September 30,
2017, the Company had a total of 573,879,193 ordinary shares
outstanding, or the equivalent of 71,734,899 ADSs.
CERTAIN BALANCE SHEET ITEMS
As of September 30, 2017, the
Company's cash and cash equivalents, term deposits and short term
investments and restricted cash were RMB1.28
billion (US$191.9 million).
Restricted cash represents deposits placed as security for banking
facilities granted to the Company, which are restricted in their
withdrawal or usage.
Business Outlook
For the fourth quarter of 2017, the Company expects its total
revenues to be between RMB433.0 million and
RMB448.0 million. Net advertising revenues are expected to
be between RMB386.2 million and RMB396.2
million. Paid services revenues are expected to be between
RMB46.8 million and RMB51.8 million.
These 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 8:00 p.m. U.S. Eastern Time on November 13, 2017 (November 14, 2017 at 9:00
a.m. Beijing/Hong Kong time) to discuss its third quarter
2017 unaudited financial results and operating performance.
To participate in the call, please use the dial-in numbers and
conference ID below:
International:
|
+6567135440
|
Mainland
China:
|
4001200654
|
Hong Kong:
|
+85230186776
|
United
States:
|
+18456750438
|
Conference
ID:
|
7682549
|
A replay of the call will be available through November 20, 2017 by using the dial-in numbers
and conference ID below:
International:
|
+61290034211
|
Mainland
China:
|
4006322162
|
Hong Kong:
|
+85230512780
|
United
States:
|
+16462543697
|
Conference
ID:
|
7682549
|
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 from operations,
non-GAAP operating margin, non-GAAP net income attributable to
Phoenix New Media Limited, non-GAAP net margin and non-GAAP net
income 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 from operations
is income from operations excluding share-based compensation.
Non-GAAP operating margin is non-GAAP income from operations
divided by total revenues. Non-GAAP net income attributable to
Phoenix New Media Limited is net income attributable to Phoenix New
Media Limited excluding share-based compensation and gain from
equity investments, including impairments. Non-GAAP net margin is
non-GAAP net income attributable to Phoenix New Media Limited
divided by total revenues. Non-GAAP net income per diluted ADS is
non-GAAP net income 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 loss from equity investments,
including 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 from operations and net
income 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 RMB6.6533 to US$1.00, the noon buying rate in effect on
September 30, 2017 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 application, fashion application 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; 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
Nicole Shan
Email: investorrelations@ifeng.com
ICR, Inc.
Rose Zu
Tel: +1 (646) 405-4883
Email: investorrelations@ifeng.com
[1] Prior
to 2016, the Company's paid services revenues comprised mainly of
revenues generated from MVAS and games and others. Digital reading
was previously classified under "games and others." In order to
align with the Company's overall strategies, digital reading was
re-classified from "games and others", and digital reading together
with MVAS was determined as "digital entertainment" starting from
the financial statements as of and for the year ended December 31,
2016. Accordingly, the revenues from digital entertainment and the
revenues from games and others for the first three quarters of 2016
have been reclassified.
|
[2]
Digital entertainment includes mobile value-added services
delivered through telecom operators' platforms, or MVAS, and
digital reading.
|
[3] Games
and others include web-based and mobile games, and other online and
mobile paid services through the Company's own
platforms.
|
[4]
"Others, net" primarily consists of government
subsidies.
|
[5] "ADS"
means American Depositary Share of the Company. Each ADS represents
eight Class A ordinary shares of the Company.
|
Phoenix New Media
Limited
|
Condensed
Consolidated Balance Sheets
|
(Amounts in
thousands)
|
|
December
31,
|
|
September30,
|
|
Septembe30,
|
2016
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
US$
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
202,694
|
|
337,696
|
|
50,756
|
Term deposits and
short term investments
|
781,298
|
|
574,799
|
|
86,393
|
Restricted
cash
|
354,602
|
|
364,167
|
|
54,735
|
Accounts receivable,
net
|
405,033
|
|
401,762
|
|
60,385
|
Amounts due from
related parties
|
156,260
|
|
281,959
|
|
42,379
|
Prepayment and other
current assets
|
64,069
|
|
70,733
|
|
10,631
|
Convertible loans due
from a related party
|
104,429
|
|
103,152
|
|
15,504
|
Total current
assets
|
2,068,385
|
|
2,134,268
|
|
320,783
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
72,087
|
|
69,590
|
|
10,459
|
Intangible assets,
net
|
9,475
|
|
7,507
|
|
1,128
|
Available-for-sale
investments
|
939,432
|
|
1,192,556
|
|
179,243
|
Equity investments,
net
|
8,809
|
|
10,477
|
|
1,575
|
Deferred tax
assets**
|
54,307
|
|
59,448
|
|
8,935
|
Other non-current
assets
|
16,047
|
|
12,874
|
|
1,935
|
Total non-current
assets
|
1,100,157
|
|
1,352,452
|
|
203,275
|
Total
assets
|
3,168,542
|
|
3,486,720
|
|
524,058
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term bank
loans
|
358,602
|
|
357,954
|
|
53,801
|
Accounts
payable
|
260,902
|
|
231,150
|
|
34,742
|
Amounts due to related
parties
|
18,720
|
|
21,970
|
|
3,302
|
Advances from
customers
|
27,825
|
|
69,316
|
|
10,417
|
Taxes
payable
|
75,652
|
|
82,131
|
|
12,344
|
Salary and welfare
payable
|
130,329
|
|
126,765
|
|
19,053
|
Accrued expenses and
other current liabilities
|
111,049
|
|
103,383
|
|
15,540
|
Total current
liabilities
|
983,079
|
|
992,669
|
|
149,199
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
1,312
|
|
1,312
|
|
197
|
Long-term
liabilities
|
21,723
|
|
22,004
|
|
3,307
|
Total non-current
liabilities
|
23,035
|
|
23,316
|
|
3,504
|
Total
liabilities
|
1,006,114
|
|
1,015,985
|
|
152,703
|
Shareholders'
equity:
|
|
|
|
|
|
Phoenix New Media
Limited shareholders' equity:
|
|
|
|
|
|
Class A ordinary
shares
|
16,843
|
|
16,952
|
|
2,548
|
Class B ordinary
shares
|
22,053
|
|
22,053
|
|
3,315
|
Additional paid-in
capital
|
1,555,511
|
|
1,576,166
|
|
236,900
|
Statutory
reserves
|
77,946
|
|
77,946
|
|
11,715
|
Retained
earnings
|
195,069
|
|
220,720
|
|
33,175
|
Accumulated other
comprehensive income
|
298,346
|
|
562,626
|
|
84,563
|
Total Phoenix New
Media Limited shareholders'
equity
|
2,165,768
|
|
2,476,463
|
|
372,216
|
Noncontrolling
interests
|
(3,340)
|
|
(5,728)
|
|
(861)
|
Total
shareholders' equity
|
2,162,428
|
|
2,470,735
|
|
371,355
|
Total liabilities
and shareholders' equity
|
3,168,542
|
|
3,486,720
|
|
524,058
|
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 28, 2017.
** In 2017, the
Company adopted the guidance of ASU 2015-17 issued by FASB in
November 2015, which
requires entities to present deferred tax assets and deferred tax
liabilities as noncurrent in a classified balance sheet. Pursuant
to the guidance, the Company retrospectively reclassified RMB54.3
million of deferred tax
assets from current assets to noncurrent assets in the balance
sheets as of December 31, 2016.
|
Phoenix New Media
Limited
|
Condensed
Consolidated Statements of Comprehensive Income
|
(Amounts in
thousands, except for number of shares and per share (or ADS)
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising revenues
|
310,439
|
|
338,725
|
|
363,124
|
|
54,578
|
|
879,052
|
|
942,933
|
|
141,724
|
Paid service
revenues
|
49,583
|
|
54,541
|
|
62,436
|
|
9,384
|
|
153,973
|
|
170,372
|
|
25,607
|
Total
revenues
|
360,022
|
|
393,266
|
|
425,560
|
|
63,962
|
|
1,033,025
|
|
1,113,305
|
|
167,331
|
Cost of
revenues
|
(182,927)
|
|
(167,844)
|
|
(188,185)
|
|
(28,284)
|
|
(521,603)
|
|
(518,518)
|
|
(77,934)
|
Gross
profit
|
177,095
|
|
225,422
|
|
237,375
|
|
35,678
|
|
511,422
|
|
594,787
|
|
89,397
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses
|
(74,210)
|
|
(118,769)
|
|
(122,843)
|
|
(18,463)
|
|
(236,785)
|
|
(337,074)
|
|
(50,663)
|
General and
administrative
expenses
|
(37,897)
|
|
(35,865)
|
|
(28,650)
|
|
(4,306)
|
|
(140,527)
|
|
(96,466)
|
|
(14,499)
|
Technology and
product
development
expenses
|
(37,756)
|
|
(45,791)
|
|
(50,412)
|
|
(7,577)
|
|
(120,188)
|
|
(140,831)
|
|
(21,167)
|
Total operating
expenses
|
(149,863)
|
|
(200,425)
|
|
(201,905)
|
|
(30,346)
|
|
(497,500)
|
|
(574,371)
|
|
(86,329)
|
Income from
operations
|
27,232
|
|
24,997
|
|
35,470
|
|
5,332
|
|
13,922
|
|
20,416
|
|
3,068
|
Other
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
7,943
|
|
13,493
|
|
14,922
|
|
2,243
|
|
24,328
|
|
41,073
|
|
6,173
|
Interest
expense
|
(1,554)
|
|
(6,426)
|
|
(5,700)
|
|
(857)
|
|
(3,283)
|
|
(18,475)
|
|
(2,777)
|
Foreign
currency exchange
gain/(loss)
|
575
|
|
(7,890)
|
|
(8,878)
|
|
(1,334)
|
|
1,122
|
|
(19,079)
|
|
(2,868)
|
(Loss)/gain
from equity
investments, including
impairments
|
(1,242)
|
|
1,127
|
|
968
|
|
145
|
|
(1,747)
|
|
1,431
|
|
215
|
Others,
net
|
1,021
|
|
3,066
|
|
4,893
|
|
735
|
|
9,447
|
|
9,386
|
|
1,411
|
Income before
tax
|
33,975
|
|
28,367
|
|
41,675
|
|
6,264
|
|
43,789
|
|
34,752
|
|
5,222
|
Income tax
expense
|
(2,879)
|
|
(4,215)
|
|
(9,615)
|
|
(1,445)
|
|
(4,836)
|
|
(11,489)
|
|
(1,727)
|
Net
income
|
31,096
|
|
24,152
|
|
32,060
|
|
4,819
|
|
38,953
|
|
23,263
|
|
3,495
|
Net loss
attributable to
noncontrolling interests
|
599
|
|
779
|
|
834
|
|
125
|
|
1,879
|
|
2,388
|
|
359
|
Net income
attributable to
Phoenix New Media Limited
|
31,695
|
|
24,931
|
|
32,894
|
|
4,944
|
|
40,832
|
|
25,651
|
|
3,854
|
Net
income
|
31,096
|
|
24,152
|
|
32,060
|
|
4,819
|
|
38,953
|
|
23,263
|
|
3,495
|
Other
comprehensive
(loss)/income, net of tax:
fair value remeasurement for
available-for-sale
investments
|
(39,610)
|
|
256,588
|
|
33,832
|
|
5,085
|
|
(22,967)
|
|
299,311
|
|
44,987
|
Other
comprehensive
income/(loss), net of tax:
foreign currency translation
adjustment
|
2,920
|
|
(12,486)
|
|
(18,778)
|
|
(2,822)
|
|
11,854
|
|
(35,031)
|
|
(5,265)
|
Comprehensive
(loss)/income
|
(5,594)
|
|
268,254
|
|
47,114
|
|
7,082
|
|
27,840
|
|
287,543
|
|
43,217
|
Comprehensive
loss
attributable to
noncontrolling
interests
|
599
|
|
779
|
|
834
|
|
125
|
|
1,879
|
|
2,388
|
|
359
|
Comprehensive
(loss)/income
attributable to Phoenix New
Media Limited
|
(4,995)
|
|
269,033
|
|
47,948
|
|
7,207
|
|
29,719
|
|
289,931
|
|
43,576
|
Net income
attributable to
Phoenix New Media Limited
|
31,695
|
|
24,931
|
|
32,894
|
|
4,944
|
|
40,832
|
|
25,651
|
|
3,854
|
Net income per
Class A and
Class B ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.06
|
|
0.04
|
|
0.06
|
|
0.01
|
|
0.07
|
|
0.04
|
|
0.01
|
Diluted
|
0.05
|
|
0.04
|
|
0.06
|
|
0.01
|
|
0.07
|
|
0.04
|
|
0.01
|
Net income per
ADS (1 ADS
represents 8 Class A ordinary
shares):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.44
|
|
0.35
|
|
0.46
|
|
0.07
|
|
0.57
|
|
0.36
|
|
0.05
|
Diluted
|
0.44
|
|
0.35
|
|
0.46
|
|
0.07
|
|
0.57
|
|
0.36
|
|
0.05
|
Weighted average
number of
Class A and Class B ordinary
shares used in computing net i
ncome per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
574,124,546
|
|
573,948,891
|
|
574,372,716
|
|
574,372,716
|
|
573,401,254
|
|
574,091,207
|
|
574,091,207
|
Diluted
|
577,432,460
|
|
576,815,588
|
|
577,816,213
|
|
577,816,213
|
|
577,056,594
|
|
577,578,429
|
|
577,578,429
|
Phoenix New Media
Limited
|
|
Condensed Segments
Information
|
|
(Amounts in
thousands)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
310,439
|
|
338,725
|
|
363,124
|
|
54,578
|
|
879,052
|
|
942,933
|
|
141,724
|
Paid
service
|
49,583
|
|
54,541
|
|
62,436
|
|
9,384
|
|
153,973
|
|
170,372
|
|
25,607
|
Total
revenues
|
360,022
|
|
393,266
|
|
425,560
|
|
63,962
|
|
1,033,025
|
|
1,113,305
|
|
167,331
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
151,770
|
|
141,459
|
|
149,000
|
|
22,395
|
|
424,035
|
|
421,584
|
|
63,365
|
Paid
service
|
31,157
|
|
26,385
|
|
39,185
|
|
5,889
|
|
97,568
|
|
96,934
|
|
14,569
|
Total cost of
revenues
|
182,927
|
|
167,844
|
|
188,185
|
|
28,284
|
|
521,603
|
|
518,518
|
|
77,934
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
158,669
|
|
197,266
|
|
214,124
|
|
32,183
|
|
455,017
|
|
521,349
|
|
78,359
|
Paid
service
|
18,426
|
|
28,156
|
|
23,251
|
|
3,495
|
|
56,405
|
|
73,438
|
|
11,038
|
Total gross
profit
|
177,095
|
|
225,422
|
|
237,375
|
|
35,678
|
|
511,422
|
|
594,787
|
|
89,397
|
Phoenix New Media
Limited
|
Condensed
Information of Cost of Revenues
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September30,
2016
|
|
June
30,
2017
|
|
September30,
2017
|
|
September30,
2017
|
|
September30,
2016
|
|
September30,
2017
|
|
September30,
|
|
|
|
|
|
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue sharing
fees
|
16,559
|
|
15,052
|
|
27,891
|
|
4,192
|
|
54,687
|
|
60,263
|
|
9,058
|
Content and
operational costs
|
119,538
|
|
105,984
|
|
110,491
|
|
16,607
|
|
332,178
|
|
322,791
|
|
48,515
|
Bandwidth
costs
|
16,404
|
|
13,607
|
|
14,085
|
|
2,117
|
|
49,041
|
|
42,220
|
|
6,346
|
Sales taxes and
surcharges
|
30,426
|
|
33,201
|
|
35,718
|
|
5,368
|
|
85,697
|
|
93,244
|
|
14,015
|
Total cost of
revenues
|
182,927
|
|
167,844
|
|
188,185
|
|
28,284
|
|
521,603
|
|
518,518
|
|
77,934
|
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
September 30, 2016
|
|
Three Months Ended
June 30, 2017
|
|
Three Months Ended
September 30, 2017
|
|
|
|
|
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
|
177,095
|
|
(5,115)
|
(1)
|
171,980
|
|
225,422
|
|
1,224
|
(1)
|
226,646
|
|
237,375
|
|
949
|
(1)
|
238,324
|
|
Gross
margin
|
49.2%
|
|
|
|
47.8%
|
|
57.3%
|
|
|
|
57.6%
|
|
55.8%
|
|
|
|
56.0%
|
|
Income from
operations
|
27,232
|
|
(8,186)
|
(1)
|
19,046
|
|
24,997
|
|
5,460
|
(1)
|
30,457
|
|
35,470
|
|
2,450
|
(1)
|
37,920
|
|
Operating
margin
|
7.6%
|
|
|
|
5.3%
|
|
6.4%
|
|
|
|
7.7%
|
|
8.3%
|
|
|
|
8.9%
|
|
|
|
|
(8,186)
|
(1)
|
|
|
|
|
5,460
|
(1)
|
|
|
|
|
2,450
|
(1)
|
|
|
|
|
|
1,242
|
(2)
|
|
|
|
|
(1,127)
|
(2)
|
|
|
|
|
(968)
|
(2)
|
|
|
Net income
attributable to
Phoenix New
Media Limited
|
31,695
|
|
(6,944)
|
|
24,751
|
|
24,931
|
|
4,333
|
|
29,264
|
|
32,894
|
|
1,482
|
|
34,376
|
|
Net margin
|
8.8%
|
|
|
|
6.9%
|
|
6.3%
|
|
|
|
7.4%
|
|
7.7%
|
|
|
|
8.1%
|
|
Net
income per
ADS—diluted
|
0.44
|
|
|
|
0.34
|
|
0.35
|
|
|
|
0.41
|
|
0.46
|
|
|
|
0.48
|
|
Weighted average
number of ADSs
used in computing
diluted net income
per ADS
|
72,179,058
|
|
|
|
72,179,058
|
|
72,101,949
|
|
|
|
72,101,949
|
|
72,227,027
|
|
|
|
72,227,027
|
|
(1) Share-based
compensation
|
(2) Loss/(gain) from
equity investments, including impairments
|
View original
content:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-third-quarter-2017-unaudited-financial-results-300554744.html
SOURCE Phoenix New Media Limited