BEIJING, March 12, 2018 /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, 2017.
"We are very pleased to deliver better-than-expected financial
results, and we are especially encouraged by the strong growth in
our advertising revenues," stated Mr. Shuang Liu, CEO of Phoenix New Media, "We
appreciate and embrace the new government policies implemented in
2017 against fake and vulgar media content. Such policies match our
mission to provide professional journalism, high-quality news, and
tasteful content to our customers. As part of our ongoing efforts
to further enrich our premium content and create our own IP, we
launched an innovative online video mini-series titled A Journey
through Literature, which explored Chinese culture and
philosophies. During its 6-week broadcast, the show attracted
numerous viewers to ifeng and also received praise from the
People's Daily.
The unique value proposition offered by our programmatic
advertising platform combined with our brand advertising solution
enabled us to generate higher-than-expected revenues in the fourth
quarter of 2017. While we continue to enhance our existing
products, we are also actively developing new products to cultivate
future growth engines. During the quarter, we launched Zhizhi, a
new Paid Knowledge Sharing product that takes our news app to a
more versatile level. In addition, we broadened the content
categories of our digital reading business by adding two of the
most popular genres with our younger target demographic: chat
stories and comics. Going forward, we are confident that our brand
equity, credibility, professionalism, and synergies between our
business segments will enable us to garner additional market share
and solidify our industry-leading position."
Ms. Betty Ho, CFO of Phoenix New
Media, further stated, "We are happy to report another solid
quarter during which our growth momentum continued. During the
fourth quarter of 2017, our total revenues increased by 12.1%
year-over-year to RMB461.8 million.
In particular, our net advertising revenues increased by 16.3%
year-over-year to RMB410.5 million,
primarily driven by a 62.6% year-over-year increase in our mobile
advertising revenues. The strong growth of the mobile advertising
business enabled it to contribute about 60% of our total
advertising revenue in 2017. The continued optimization of our
ifeng News App drove its users to grow over 30% in the fourth
quarter of 2017 as compared to the same quarter of the previous
year. Looking forward, we will continue to focus on our content and
product improvement to maximize shareholders' value."
Fourth Quarter 2017 Financial Results
REVENUES
Total revenues for the fourth quarter of 2017 increased by 12.1%
to RMB461.8 million (US$71.0 million) from RMB411.9 million in the fourth quarter of
2016.
Net advertising revenues (net of advertising agency service
fees) for the fourth quarter of 2017 increased by 16.3% to
RMB410.5 million (US$63.1 million) from RMB353.2 million in the fourth quarter of 2016,
which was primarily attributable to a 62.6% year-over-year increase
in mobile advertising revenues that was partially offset by a 18.1%
year-over-year decrease in PC advertising revenues.
Paid services revenues[1] for the fourth quarter of
2017 decreased by 12.7% to RMB51.2
million (US$7.9 million) from
RMB58.7 million in the fourth quarter
of 2016. Revenues from digital entertainment[2] for the
fourth quarter of 2017 decreased by 12.9% to RMB39.5 million (US$6.1
million) from RMB45.4 million
in the fourth quarter of 2016. This was due to a 27.7% decrease in
the MVAS revenues mainly resulting from the decline in users'
demand for services provided through telecom operators in
China and partially offset by a
19.2% increase of digital reading revenues to RMB17.0 million (US$2.6
million). Revenues from games and others[3] for
the fourth quarter of 2017 decreased by 12.1% to RMB11.7 million (US$1.8
million) from RMB13.4 million
in the fourth quarter of 2016, which was primarily attributable to
a decrease in revenues generated from web-based games operated on
the Company's own platform.
[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 four 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.
|
COST OF REVENUES
Cost of revenues for the fourth quarter of 2017 increased by
1.7% to RMB208.7 million
(US$32.1 million) from RMB205.2 million in the fourth quarter of 2016,
primarily attributable to the increase in content and operational
costs and sales taxes and surcharges and partially offset by the
decrease in revenue sharing fees and bandwidth costs.
- Content and operational costs for the fourth quarter of 2017
increased to RMB143.6 million
(US$22.1 million) from RMB138.6 million in the fourth quarter of 2016,
primarily attributable to an increase in advertisement-related
content production cost.
- Revenue sharing fees to telecom operators and channel partners
for the fourth quarter of 2017 decreased to RMB12.4 million (US$1.9
million) from RMB17.3 million
in the fourth quarter of 2016, primarily attributable to a decrease
in the sales of MVAS products.
- Bandwidth costs for the fourth quarter of 2017 decreased to
RMB12.8 million (US$2.0 million) from RMB15.2 million in the fourth quarter of 2016,
primarily due to the decrease in bandwidth purchase costs as a
result of intense competition.
- Sales taxes and surcharges for the fourth quarter of 2017
increased to RMB39.9 million
(US$6.1 million) from RMB34.1 million in the fourth quarter of
2016.
- Share-based compensation included in cost of revenues was
RMB1.2 million (US$0.2 million) in the fourth quarter of 2017 as
compared to negative RMB0.9 million
in the fourth quarter of 2016 resulting from the increase in
estimated forfeiture rate of share-based awards based on the actual
forfeiture rate in the quarter.
GROSS PROFIT
Gross profit for the fourth quarter of 2017 increased by 22.5%
to RMB253.1 million (US$38.9 million) from RMB206.7 million in the fourth quarter of 2016.
Gross margin for the fourth quarter of 2017 increased to 54.8% from
50.2% in the fourth quarter of 2016. The increase in gross margin
was primarily attributable to the increase of revenues and decrease
of certain costs 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 fourth quarter of 2017, which
excluded share-based compensation, increased to 55.1% from 49.9% in
the fourth quarter of 2016.
OPERATING EXPENSES AND INCOME/(LOSS) FROM
OPERATIONS
Total operating expenses for the fourth quarter of 2017
increased by 39.6% to RMB258.5
million (US$39.7 million) from
RMB185.2 million in the fourth
quarter of 2016, which was primarily attributable to an increase in
mobile traffic acquisition expenses. Share-based compensation
included in operating expenses was RMB3.5
million (US$0.5 million) in
the fourth quarter of 2017 as compared to RMB2.5 million in the fourth quarter of 2016.
Loss from operations for the fourth quarter of 2017 was
RMB5.4 million (US$0.8 million) as compared to income from
operations of RMB21.5 million in the
fourth quarter of 2016. Operating margin for the fourth quarter of
2017 was negative 1.2% as compared to 5.2% in the fourth quarter of
2016, which was primarily attributable to the increase in mobile
traffic acquisition expenses.
Non-GAAP loss from operations for the fourth quarter of 2017,
which excluded share-based compensation, was RMB0.8 million (US$0.1
million) as compared to Non-GAAP income from operations of
RMB23.0 million in the fourth quarter
of 2016. Non-GAAP operating margin for the fourth quarter of 2017,
which excluded share-based compensation, was negative 0.2% as
compared to 5.6% in the fourth 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 fourth quarter of 2017 was RMB19.9 million (US$3.1million) as compared to RMB27.1 million in the fourth quarter of
2016.
- Interest income for the fourth quarter of 2017 increased to
RMB13.2 million (US$2.0 million) from RMB10.8 million in the fourth quarter of 2016,
which was mainly due to the increase of interest bearing
investments and receivables in the fourth quarter of 2017 as
compared to that of 2016.
- Interest expense for the fourth quarter of 2017 decreased
slightly to RMB3.7 million
(US$0.6 million) from RMB3.8 million in the fourth quarter of
2016.
- Foreign currency exchange loss for the fourth quarter of 2017
was RMB4.5 million (US$0.7 million) as compared to foreign currency
exchange gain of RMB8.5 million in
the fourth quarter of 2016, which was mainly caused by the
appreciation of Renminbi against US dollars in the fourth quarter
of 2017.
- Gain from equity investments for the fourth quarter of 2017,
including impairments, was RMB4.9
million (US$0.7 million) as
compared to loss from equity investments of RMB0.03 million in the fourth quarter of
2016.
- Others, net, for the fourth quarter of 2017 decreased to
RMB10.0 million (US$1.5 million) from RMB11.6 million in the fourth quarter of 2016,
which was primarily attributable to the decrease of the government
subsidies received in the fourth quarter of 2017 as compared to
that of 2016.
NET INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net income attributable to Phoenix New Media Limited for the
fourth quarter of 2017 was RMB11.8
million (US$1.8 million) as
compared to RMB39.8 million in the
fourth quarter of 2016. Net margin for the fourth quarter of 2017
was 2.6%, as compared to 9.7% in the fourth quarter of 2016. Net
income per diluted ADS[5] in the fourth quarter of 2017
was RMB0.16 (US$0.02) as compared to RMB0.55 in the fourth quarter of 2016.
Non-GAAP net income attributable to Phoenix New Media Limited
for the fourth quarter of 2017, which excluded share-based
compensation and gain/(loss) from equity investments, including
impairments, was RMB11.6 million
(US$1.8 million) as compared to
RMB41.4 million in the fourth quarter
of 2016. Non-GAAP net margin for the fourth quarter of 2017 was
2.5% as compared to 10.0% in the fourth quarter of 2016. Non-GAAP
net income per diluted ADS in the fourth quarter of 2017 was
RMB0.16 (US$0.02) as compared to RMB0.57 in the fourth quarter of 2016.
For the fourth quarter of 2017, the Company's weighted average
number of ADSs used in the computation of diluted net income per
ADS was 73,896,840. As of December 31,
2017, the Company had a total of 577,326,846 ordinary shares
outstanding, or the equivalent of 72,165,856 ADSs.
[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.
|
CERTAIN BALANCE SHEET ITEMS
As of December 31, 2017, the
Company's cash and cash equivalents, term deposits and short term
investments and restricted cash were RMB1.44
billion (US$220.9 million).
Restricted cash represents deposits placed as security for banking
facilities granted to the Company, which are restricted in their
withdrawal or usage.
Fiscal Year 2017 Financial Results
REVENUES
Total revenues for fiscal year 2017 increased by 9.0% to
RMB1.58 billion (US$242.1 million) from RMB1.44 billion in fiscal year 2016.
Net advertising revenues (net of advertising agency service
fees) for fiscal year 2017 increased by 9.8% to RMB1.35 billion (US$208.0
million), primarily due to the 46.5% year-over-year growth
in mobile advertising revenues, which was partially offset by the
decrease in PC advertising revenues.
Paid service revenues for fiscal year 2017 increased by 4.2% to
RMB221.6 million (US$34.1 million) from RMB212.7 million in fiscal year 2016, which was
primarily due to the 51.3% year-over-year increase of digital
reading revenues.
COST OF REVENUES AND GROSS
PROFIT
Cost of revenues for fiscal year 2017 increased slightly to
RMB727.2 million (US$111.8 million) from RMB726.8 million in fiscal year 2016, which was
primarily due to the increase in sales taxes and surcharges and
partially offset by the decrease in bandwidth costs. Share-based
compensation included in cost of revenues was RMB5.0 million (US$0.8
million) in fiscal year 2017, as compared to negative
RMB4.4 million in fiscal year 2016
resulting from the increase of estimated forfeiture rate of
share-based awards based on the actual forfeiture rate in 2016.
Gross profit for fiscal year 2017 increased to RMB847.9 million (US$130.3
million) from RMB718.1 million
in fiscal year 2016. Gross margin for fiscal year 2017 increased to
53.8% from 49.7% in fiscal year 2016, which was primarily due to
the increase of revenues as explained above. Non-GAAP gross margin,
which excludes share-based compensation, for fiscal year 2017
increased to 54.2% from 49.4% in fiscal year 2016.
OPERATING EXPENSES AND INCOME FROM
OPERATIONS
Total operating expenses for fiscal year 2017 increased to
RMB832.9 million (US$128.0 million) from RMB682.7 million in fiscal year 2016. The
increase in operating expenses was primarily attributable to the
increase in mobile traffic acquisition expenses. Share-based
compensation included in operating expenses increased to
RMB15.8 million (US$2.4 million) in fiscal year 2017 from
RMB6.3 million in fiscal year 2016,
which was mainly due to the share-based awards newly granted in
2017 and the Company's option exchange program implemented in the
fourth quarter of 2016 while there was an increase of estimated
forfeiture rate of share-based awards based on the actual
forfeiture rate in 2016.
Income from operations for fiscal year 2017 was RMB15.0 million (US$2.3
million) as compared to RMB35.4
million in fiscal year 2016. Operating margin for fiscal
year 2017 was 1.0%, as compared to 2.4% in fiscal year 2016, which
was primarily due to the year-over-year increase in mobile traffic
acquisition expenses.
Non-GAAP income from operations, which excluded share-based
compensation, for fiscal year 2017 decreased by 3.8% to
RMB35.8 million (US$5.5 million) from RMB37.3 million in fiscal year 2016. Non-GAAP
operating margin for fiscal year 2017 was 2.3%, as compared to 2.6%
in fiscal year 2016.
NET INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net income attributable to Phoenix New Media Limited for fiscal
year 2017 was RMB37.5 million
(US$5.8 million) as compared to
RMB80.6 million in fiscal year 2016.
Net margin for fiscal year 2017 was 2.4% as compared to 5.6% in
fiscal year 2016. Net income per diluted ADS for fiscal year 2017
was RMB0.51 (US$0.08) as compared to RMB1.12 in fiscal year 2016.
Non-GAAP net income attributable to Phoenix New Media Limited
for fiscal year 2017, which excluded share-based compensation and
gain/(loss) from equity investments, including impairments, was
RMB52.0 million (US$8.0 million) as compared to RMB84.3 million in fiscal year 2016. Non-GAAP net
margin for fiscal year 2017 was 3.3% as compared to 5.8% in fiscal
year 2016. Non-GAAP net income per diluted ADS for fiscal year 2017
was RMB0.70 (US$0.11) as compared to RMB1.17 in fiscal year 2016.
Business Outlook
Accounting Standard Update - Revenue From Contracts With
Customers (Topic 606), or ASC 606, will become effective for the
Company's reporting periods starting from January 1, 2018. Based on ASC 606, for the first
quarter of 2018, the Company expects its total revenues to be
between RMB272.3 million and
RMB287.3 million. Net advertising
revenues are expected to be between RMB237.2
million and RMB247.2 million.
Paid services revenues are expected to be between RMB35.1 million and RMB40.1 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 9:00 p.m. U.S. Eastern Time on March 12, 2018 (March 13,
2018 at 9:00 a.m. Beijing/Hong
Kong time) to discuss its fourth quarter and fiscal year
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:
|
7295147
|
A replay of the call will be available through March 19, 2018 by using the dial-in numbers and
conference ID below:
International:
|
+61290034211
|
Mainland
China:
|
4006322162
|
Hong
Kong:
|
+85230512780
|
United
States:
|
+16462543697
|
Conference
ID:
|
7295147
|
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/(loss) 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/(loss) from
operations is income/(loss) from operations excluding share-based
compensation. Non-GAAP operating margin is non-GAAP income/(loss)
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/(loss) 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 gain/(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/(loss) 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 RMB6.5063 to US$1.00, the noon buying rate in effect on
December 29, 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
Phoenix New Media
Limited
|
Condensed
Consolidated Balance Sheets
|
(Amounts in
thousands)
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
2016
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
US$
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
202,694
|
|
362,862
|
|
55,771
|
Term deposits and
short term investments
|
781,298
|
|
737,657
|
|
113,376
|
Restricted
cash
|
354,602
|
|
336,700
|
|
51,750
|
Accounts receivable,
net
|
405,033
|
|
458,744
|
|
70,508
|
Amounts due from
related parties
|
156,260
|
|
187,214
|
|
28,774
|
Prepayment and other
current assets
|
64,069
|
|
57,458
|
|
8,831
|
Convertible debts
from a related party
|
104,429
|
|
102,631
|
|
15,774
|
Total current
assets
|
2,068,385
|
|
2,243,266
|
|
344,784
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
72,087
|
|
64,454
|
|
9,906
|
Intangible assets,
net
|
9,475
|
|
6,712
|
|
1,032
|
Available-for-sale
investments
|
939,432
|
|
1,196,330
|
|
183,873
|
Equity investments,
net
|
8,809
|
|
15,342
|
|
2,358
|
Deferred tax
assets**
|
54,307
|
|
60,460
|
|
9,293
|
Other non-current
assets
|
16,047
|
|
12,544
|
|
1,927
|
Total non-current
assets
|
1,100,157
|
|
1,355,842
|
|
208,389
|
Total
assets
|
3,168,542
|
|
3,599,108
|
|
553,173
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
loans
|
358,602
|
|
330,000
|
|
50,720
|
Accounts
payable
|
260,902
|
|
262,657
|
|
40,371
|
Amounts due to
related parties
|
18,720
|
|
14,140
|
|
2,173
|
Advances from
customers
|
27,825
|
|
65,196
|
|
10,020
|
Taxes
payable
|
75,652
|
|
92,214
|
|
14,173
|
Salary and welfare
payable
|
130,329
|
|
134,471
|
|
20,668
|
Accrued expenses and
other current liabilities
|
111,049
|
|
173,253
|
|
26,628
|
Total current
liabilities
|
983,079
|
|
1,071,931
|
|
164,753
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
1,312
|
|
1,312
|
|
202
|
Long-term
liabilities
|
21,723
|
|
24,714
|
|
3,798
|
Total non-current
liabilities
|
23,035
|
|
26,026
|
|
4,000
|
Total
liabilities
|
1,006,114
|
|
1,097,957
|
|
168,753
|
Shareholders'
equity:
|
|
|
|
|
|
Phoenix New Media
Limited shareholders' equity:
|
|
|
|
|
|
Class A ordinary
shares
|
16,843
|
|
17,180
|
|
2,641
|
Class B ordinary
shares
|
22,053
|
|
22,053
|
|
3,389
|
Additional paid-in
capital
|
1,555,511
|
|
1,587,575
|
|
244,006
|
Statutory
reserves
|
77,946
|
|
81,237
|
|
12,486
|
Retained
earnings
|
195,069
|
|
229,250
|
|
35,235
|
Accumulated other
comprehensive income
|
298,346
|
|
570,244
|
|
87,645
|
Total Phoenix New
Media Limited shareholders' equity
|
2,165,768
|
|
2,507,539
|
|
385,402
|
Noncontrolling
interests
|
(3,340)
|
|
(6,388)
|
|
(982)
|
Total
shareholders' equity
|
2,162,428
|
|
2,501,151
|
|
384,420
|
Total liabilities
and shareholders' equity
|
3,168,542
|
|
3,599,108
|
|
553,173
|
|
|
|
|
|
|
* 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
|
|
Twelve Months
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising revenues
|
353,158
|
|
363,124
|
|
410,547
|
|
63,100
|
|
1,232,210
|
|
1,353,480
|
|
208,026
|
Paid service
revenues
|
58,724
|
|
62,436
|
|
51,240
|
|
7,875
|
|
212,697
|
|
221,612
|
|
34,061
|
Total
revenues
|
411,882
|
|
425,560
|
|
461,787
|
|
70,975
|
|
1,444,907
|
|
1,575,092
|
|
242,087
|
Cost of
revenues
|
(205,204)
|
|
(188,185)
|
|
(208,679)
|
|
(32,073)
|
|
(726,807)
|
|
(727,197)
|
|
(111,768)
|
Gross
profit
|
206,678
|
|
237,375
|
|
253,108
|
|
38,902
|
|
718,100
|
|
847,895
|
|
130,319
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses
|
(102,386)
|
|
(122,843)
|
|
(156,590)
|
|
(24,067)
|
|
(339,171)
|
|
(493,664)
|
|
(75,875)
|
General and
administrative expenses
|
(41,150)
|
|
(28,650)
|
|
(50,457)
|
|
(7,755)
|
|
(181,677)
|
|
(146,923)
|
|
(22,582)
|
Technology and
product development expenses
|
(41,692)
|
|
(50,412)
|
|
(51,494)
|
|
(7,914)
|
|
(161,880)
|
|
(192,325)
|
|
(29,560)
|
Total operating
expenses
|
(185,228)
|
|
(201,905)
|
|
(258,541)
|
|
(39,736)
|
|
(682,728)
|
|
(832,912)
|
|
(128,017)
|
Income/(loss) from
operations
|
21,450
|
|
35,470
|
|
(5,433)
|
|
(834)
|
|
35,372
|
|
14,983
|
|
2,302
|
Other
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
10,785
|
|
14,922
|
|
13,213
|
|
2,031
|
|
35,113
|
|
54,286
|
|
8,344
|
Interest
expenses
|
(3,778)
|
|
(5,700)
|
|
(3,746)
|
|
(576)
|
|
(7,061)
|
|
(22,221)
|
|
(3,415)
|
Foreign
currency exchange gain/(loss)
|
8,486
|
|
(8,878)
|
|
(4,481)
|
|
(689)
|
|
9,608
|
|
(23,560)
|
|
(3,621)
|
(Loss)/gain
from equity investments, including
impairments
|
(29)
|
|
968
|
|
4,865
|
|
748
|
|
(1,776)
|
|
6,296
|
|
968
|
Others,
net
|
11,606
|
|
4,893
|
|
10,037
|
|
1,543
|
|
21,053
|
|
19,423
|
|
2,985
|
Income before
tax
|
48,520
|
|
41,675
|
|
14,455
|
|
2,223
|
|
92,309
|
|
49,207
|
|
7,563
|
Income tax
expense
|
(9,253)
|
|
(9,615)
|
|
(3,294)
|
|
(506)
|
|
(14,089)
|
|
(14,783)
|
|
(2,272)
|
Net
income
|
39,267
|
|
32,060
|
|
11,161
|
|
1,717
|
|
78,220
|
|
34,424
|
|
5,291
|
Net loss
attributable to noncontrolling interests
|
512
|
|
834
|
|
660
|
|
101
|
|
2,391
|
|
3,048
|
|
468
|
Net income
attributable to Phoenix New Media Limited
|
39,779
|
|
32,894
|
|
11,821
|
|
1,818
|
|
80,611
|
|
37,472
|
|
5,759
|
Net
income
|
39,267
|
|
32,060
|
|
11,161
|
|
1,717
|
|
78,220
|
|
34,424
|
|
5,291
|
Other
comprehensive income, net of tax: fair value
remeasurement for available-for-sale
investments
|
270,303
|
|
33,832
|
|
22,227
|
|
3,416
|
|
247,336
|
|
321,538
|
|
49,419
|
Other
comprehensive income/(loss), net of tax: foreign
currency translation
adjustment
|
15,815
|
|
(18,778)
|
|
(14,609)
|
|
(2,245)
|
|
27,669
|
|
(49,640)
|
|
(7,630)
|
Comprehensive
income
|
325,385
|
|
47,114
|
|
18,779
|
|
2,888
|
|
353,225
|
|
306,322
|
|
47,080
|
Comprehensive
loss attributable to noncontrolling
interests
|
512
|
|
834
|
|
660
|
|
101
|
|
2,391
|
|
3,048
|
|
468
|
Comprehensive
income attributable to Phoenix New
Media Limited
|
325,897
|
|
47,948
|
|
19,439
|
|
2,989
|
|
355,616
|
|
309,370
|
|
47,548
|
Net income
attributable to Phoenix New Media Limited
|
39,779
|
|
32,894
|
|
11,821
|
|
1,818
|
|
80,611
|
|
37,472
|
|
5,759
|
Net income per Class
A and Class B ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.07
|
|
0.06
|
|
0.02
|
|
0.00
|
|
0.14
|
|
0.07
|
|
0.01
|
Diluted
|
0.07
|
|
0.06
|
|
0.02
|
|
0.00
|
|
0.14
|
|
0.06
|
|
0.01
|
Net income per ADS (1
ADS represents 8 Class A ordinary
shares):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.55
|
|
0.46
|
|
0.16
|
|
0.03
|
|
1.12
|
|
0.52
|
|
0.08
|
Diluted
|
0.55
|
|
0.46
|
|
0.16
|
|
0.02
|
|
1.12
|
|
0.51
|
|
0.08
|
Weighted average
number of Class A and Class B ordinary
shares used in computing net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
574,115,251
|
|
574,372,716
|
|
576,851,243
|
|
576,851,243
|
|
573,521,536
|
|
574,786,887
|
|
574,786,887
|
Diluted
|
577,290,719
|
|
577,816,213
|
|
591,174,724
|
|
591,174,724
|
|
577,037,906
|
|
590,433,907
|
|
590,433,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 28, 2017.
|
Phoenix New Media
Limited
|
Condensed Segments
Information
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
September
30,
|
|
December31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
353,158
|
|
363,124
|
|
410,547
|
|
63,100
|
|
1,232,210
|
|
1,353,480
|
|
208,026
|
Paid
service
|
58,724
|
|
62,436
|
|
51,240
|
|
7,875
|
|
212,697
|
|
221,612
|
|
34,061
|
Total
revenues
|
411,882
|
|
425,560
|
|
461,787
|
|
70,975
|
|
1,444,907
|
|
1,575,092
|
|
242,087
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
174,005
|
|
149,000
|
|
181,361
|
|
27,874
|
|
598,040
|
|
602,945
|
|
92,671
|
Paid
service
|
31,199
|
|
39,185
|
|
27,318
|
|
4,199
|
|
128,767
|
|
124,252
|
|
19,097
|
Total cost of
revenues
|
205,204
|
|
188,185
|
|
208,679
|
|
32,073
|
|
726,807
|
|
727,197
|
|
111,768
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
179,153
|
|
214,124
|
|
229,186
|
|
35,226
|
|
634,170
|
|
750,535
|
|
115,355
|
Paid
service
|
27,525
|
|
23,251
|
|
23,922
|
|
3,676
|
|
83,930
|
|
97,360
|
|
14,964
|
Total gross
profit
|
206,678
|
|
237,375
|
|
253,108
|
|
38,902
|
|
718,100
|
|
847,895
|
|
130,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 28, 2017.
|
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,
|
|
2016
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue sharing
fees
|
17,340
|
|
27,891
|
|
12,350
|
|
1,898
|
|
72,027
|
|
72,613
|
|
11,160
|
Content and
operational costs
|
138,635
|
|
110,491
|
|
143,588
|
|
22,069
|
|
470,813
|
|
466,379
|
|
71,681
|
Bandwidth
costs
|
15,160
|
|
14,085
|
|
12,830
|
|
1,972
|
|
64,200
|
|
55,050
|
|
8,461
|
Sales taxes and
surcharges
|
34,069
|
|
35,718
|
|
39,911
|
|
6,134
|
|
119,767
|
|
133,155
|
|
20,466
|
Total cost of
revenues
|
205,204
|
|
188,185
|
|
208,679
|
|
32,073
|
|
726,807
|
|
727,197
|
|
111,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Derived from audited
financial statements included in the Company's Form 20-F dated
April 28, 2017.
|
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, 2016
|
|
Three Months Ended
September 30, 2017
|
|
Three Months Ended
December 31, 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
|
206,678
|
|
(949)
|
(1)
|
205,729
|
|
237,375
|
|
949
|
(1)
|
238,324
|
|
253,108
|
|
1,221
|
(1)
|
254,329
|
Gross
margin
|
50.2%
|
|
|
|
49.9%
|
|
55.8%
|
|
|
|
56.0%
|
|
54.8%
|
|
|
|
55.1%
|
Income/(loss)
from
operations
|
21,450
|
|
1,542
|
(1)
|
22,992
|
|
35,470
|
|
2,450
|
(1)
|
37,920
|
|
(5,433)
|
|
4,677
|
(1)
|
(756)
|
Operatingt
margin
|
5.2%
|
|
|
|
5.6%
|
|
8.3%
|
|
|
|
8.9%
|
|
(1.2%)
|
|
|
|
(0.2%)
|
|
|
|
1,542
|
(1)
|
|
|
|
|
2,450
|
(1)
|
|
|
|
|
4,677
|
(1)
|
|
|
|
|
29
|
(2)
|
|
|
|
|
(968)
|
(2)
|
|
|
|
|
(4,865)
|
(2)
|
|
Net income
attributable
to Phoenix New
Media Limited
|
39,779
|
|
1,571
|
|
41,350
|
|
32,894
|
|
1,482
|
|
34,376
|
|
11,821
|
|
(188)
|
|
11,633
|
Net margin
|
9.7%
|
|
|
|
10.0%
|
|
7.7%
|
|
|
|
8.1%
|
|
2.6%
|
|
|
|
2.5%
|
Net income
per
ADS—diluted
|
0.55
|
|
|
|
0.57
|
|
0.46
|
|
|
|
0.48
|
|
0.16
|
|
|
|
0.16
|
Weighted average
number
of ADSs used in
computing diluted net
income per ADS
|
72,161,340
|
|
|
|
72,161,340
|
|
72,227,027
|
|
|
|
72,227,027
|
|
73,896,840
|
|
|
|
73,896,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation
|
(2) Loss/(gain) from
equity investments, including impairments
|
|
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, 2016
|
|
Twelve Months
Ended December 31, 2017
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Gross
profit
|
718,100
|
|
(4,367)
|
(1)
|
713,733
|
|
847,895
|
|
5,017
|
(1)
|
852,912
|
Gross
margin
|
49.7%
|
|
|
|
49.4%
|
|
53.8%
|
|
|
|
54.2%
|
Income from
operations
|
35,372
|
|
1,890
|
(1)
|
37,262
|
|
14,983
|
|
20,852
|
(1)
|
35,835
|
Operating
margin
|
2.4%
|
|
|
|
2.6%
|
|
1.0%
|
|
|
|
2.3%
|
|
|
|
1,890
|
(1)
|
|
|
|
|
20,852
|
(1)
|
|
|
|
|
1,776
|
(2)
|
|
|
|
|
(6,296)
|
(2)
|
|
Net income
attributable to Phoenix New
Media Limited
|
80,611
|
|
3,666
|
|
84,277
|
|
37,472
|
|
14,556
|
|
52,028
|
Nett
margin
|
5.6%
|
|
|
|
5.8%
|
|
2.4%
|
|
|
|
3.3%
|
Net income per
ADS—diluted
|
1.12
|
|
|
|
1.17
|
|
0.51
|
|
|
|
0.70
|
Weighted average
number of ADSs used in
computing diluted net income per
ADS
|
72,129,738
|
|
|
|
72,129,738
|
|
73,804,238
|
|
|
|
73,804,238
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation
|
(2) Loss/(gain) from
equity investments, including 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-fourth-quarter-and-fiscal-year-2017-unaudited-financial-results-300612312.html
SOURCE Phoenix New Media Limited