BEIJING, March 18, 2019 /PRNewswire/ -- Phoenix New Media
Limited (NYSE: FENG) ("Phoenix New Media", "ifeng" or the
"Company"), a leading new media company in China, today announced its unaudited financial
results for the fourth quarter and fiscal year ended December 31, 2018.
"As online content regulation in China became increasingly stringent during
2018, we continued to adapt and evolve with the changing media
landscape. As an industry leader, we remain steadfast in our
commitment to providing our users with leading professional
journalism and world-class news content," Mr. Shuang Liu, CEO of Phoenix New Media, commented.
"In the fourth quarter, we actively expanded our user base and
service offerings by diversifying into lifestyle verticals like
entertainment and fashion, refining our We-Media operations,
increasing investments in our digital reading business, enhancing
our video operations, and accelerating our in-house original
content production capabilities. Looking forward to 2019, we will
maintain our focus on optimizing both our users' experience and the
ROI for our advertisers. We are also looking for opportunities to
expand our products and content offerings through mergers and
acquisitions."
Ms. Betty Ho, CFO of Phoenix New Media, further
stated, "In the fourth quarter of 2018, our total revenues
decreased by 13.5% year over year to RMB399.2 million under the
new accounting standard of ASC606 and decreased by 6.0% year
over year to RMB434.1 million under
the prior accounting standard of ASC605, primarily as a result
of 14-day temporary service suspension and the macroeconomic
slowdown. However, as the fourth quarter normally is our strongest
quarter, our total revenues increased by 21.2% sequentially, driven
by a 26.5% growth of our advertising revenues compared to the third
quarter of 2018 under the new accounting standard of ASC606.
The advertising revenue generated from our FENG app has increased
by 24.5% year-over-year in the fourth quarter of 2018 under the
prior accounting standard. While we are expecting the economic
headwind to continue into 2019, we are confident that our
continuous efforts in diversifying our revenue streams and
improving the synergies between our business lines will help us
weather through the near-term uncertainties and deliver long-term
value to our shareholders."
Acquisition of Yitian Xindong
On December 19, 2018, the Company
announced that it entered into an agreement to acquire 25.5% equity
interests in Beijing Yitian Xindong Network Technology
Co., Ltd. ("Yitian Xindong"), for an aggregate purchase price
of RMB144 million (the
"Acquisition"). Yitian Xindong owns the mobile application Tadu, a
leading online digital reading application in China that currently has more than one million
daily active users.
On December 28, 2018, the Company
completed the Acquisition and gained a 51.0% voting rights of
Yitian Xindong by entering an agreement with Shenzhen Bingruixin
Technology Co., Ltd. ("Bingruixin"), a 25.5% shareholder of
Yitian Xindong, who agreed to entrust voting rights with respect to
the 25.5% equity interests in Yitian Xindong to the Company.
Accordingly, the Company was able to consolidate Yitian Xindong and
had consolidated the unaudited financial statements of Yitian
Xindong for the 3-day period from December
29, 2018 to December 31, 2018.
The revenue of Yitian Xindong for the 3-day period was RMB1.1 million (US$0.2
million), which was included in the consolidated paid
service revenues.
On March 1, 2019, the Company
acquired another 25.5% equity interests in Yitian Xindong from
Bingruixin. As a result, the Company currently holds 51.0% equity
interests in and a 51.0% voting rights of Yitian Xindong and
expects to continue to consolidate Yitian Xindong's financial
statements.
Adoption of ASC606
Beginning from January 1, 2018, the Company adopted a new
accounting standard of ASC606, Revenue from Contracts with
Customers (the "new accounting standard") by applying the
modified retrospective method. The financial data presented in the
Company's financial statements for the quarters of 2018 and the
fiscal year 2018 are in accordance with the new accounting standard
while all financial data presented for the quarters of 2017 and the
fiscal year 2017 are in accordance with ASC605, Revenue
Recognition (the "prior accounting standard").
The impact of applying the new accounting standard on the
Company's unaudited financial results as compared to the prior
accounting standard for the quarter ended December 31, 2018 was as follows:
|
Three
Months Ended December 31,
2018
|
|
|
Prior
Accounting
Standard (1)
|
Adjustments
|
New
Accounting
Standard (2)
|
|
|
|
Sales
Taxes And
Surcharges
|
|
Barter
Transactions
|
|
Contract
Fulfillment Costs
|
|
|
|
(RMB in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
434,068
|
|
(35,821)
|
|
987
|
|
-
|
|
399,234
|
Net advertising
revenues
|
388,667
|
|
(33,675)
|
|
987
|
|
-
|
|
355,979
|
Paid services
revenues
|
45,401
|
|
(2,146)
|
|
-
|
|
-
|
|
43,255
|
Cost of
revenues
|
(217,198)
|
|
35,821
|
|
(52)
|
|
157
|
|
(181,272)
|
Gross
profit
|
216,870
|
|
-
|
|
935
|
|
157
|
|
217,962
|
Operating
expenses
|
(254,447)
|
|
-
|
|
(2,564)
|
|
-
|
|
(257,011)
|
Sales and marketing
expenses
|
(152,958)
|
|
-
|
|
(2,564)
|
|
-
|
|
(155,522)
|
Loss from operations
|
(37,577)
|
|
-
|
|
(1,629)
|
|
157
|
|
(39,049)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
(1) This financial information for the three months ended
December 31, 2018 was presented
under the prior accounting standard (ASC605).
(2) This financial information for the three months ended
December 31, 2018 was presented
under the new accounting standard (ASC606).
Fourth Quarter 2018 Financial Results
REVENUES
Total revenues for the fourth quarter of 2018 were RMB399.2 million (US$58.1
million) under the new accounting standard, which
represented a decrease of 13.5% from RMB461.8 million in the fourth quarter of
2017.
Net advertising revenues for the fourth quarter of
2018 were RMB355.9
million (US$51.8 million)
(net of advertising agency service fees and sales taxes and
surcharges) under the new accounting standard, which
represented a decrease of 13.3% from RMB410.5 million in the fourth quarter of
2017.
Paid services revenues[1] for the fourth quarter of
2018 were RMB43.3 million
(US$6.3 million) under the new
accounting standard, which represented a decrease of 15.6% from
RMB51.2 million in the fourth
quarter of 2017. Revenues from digital entertainment[2] for the fourth quarter of
2018 decreased by 23.3% to RMB30.3 million (US$4.4 million) from RMB39.5 million in the fourth quarter of 2017.
Revenues from games and others[3] for the fourth quarter of
2018 increased by 10.5% to RMB13.0
million (US$1.9 million) from
RMB11.7 million in the fourth quarter
of 2017.
Under the prior accounting standard ASC605, total revenues for
the fourth quarter of 2018 would have been RMB434.1 million (US$63.1
million), which would have represented a decrease of 6.0%
from RMB461.8 million in the fourth quarter of
2017.
Under the prior accounting standard ASC605, net advertising
revenues for the fourth quarter of 2018 would have been
RMB388.7 million (US$56.5 million), which would have represented a
decrease of 5.3% from RMB410.5
million in the fourth quarter of 2017, primarily
attributable to a 29.2% year-over-year decrease in PC
advertising revenues, partially offset by a 24.5% year-over-year
increase in mobile application advertising revenues. The decrease
in net advertising revenues was mainly due to the challenging
market condition and the negative impact from the 14-day temporary
service suspension of ifeng News mobile application, WAP, and
certain channels on ifeng.com between September 26, 2018 and October 9, 2018.
Under the prior accounting standard ASC605, paid services
revenues for the fourth quarter of 2018 would have been
RMB45.4 million (US$6.6 million), which would have represented a
decrease of 11.4% from RMB51.2 million in the
fourth quarter of 2017. Under the prior accounting standard
ASC605, revenues from digital entertainment for the fourth quarter
of 2018 would have been RMB31.6
million (US$4.6 million),
which would have represented a decrease of 19.9% from RMB39.5 million in the fourth quarter
of 2017, due to a 23.2% decrease in the MVAS revenues mainly
resulting from the decline in users' demand for services provided
through telecom operators in China. Under the prior accounting standard
ASC605, revenues from online digital reading for the
fourth quarter of 2018 would have been RMB14.4 million (US$2.1
million), which would have represented a decrease of 15.5%
from RMB17.0 million in the
fourth quarter of 2017, mainly due to the tightening
regulations in China regarding
online digital reading content and the impact of the 14-day
temporary service suspension. Under the prior accounting standard
ASC605, revenues from games and others for the fourth quarter
of 2018 would have been RMB13.8
million (US$2.0 million),
which would have represented an increase of 17.2% from RMB11.7 million in the fourth quarter of
2017.
COST OF REVENUES
Cost of revenues for the fourth quarter of 2018 was RMB181.3 million (US$26.4
million) under the new accounting standard, which
represented a decrease of 13.1% from RMB208.7 million in the fourth quarter of 2017.
Under the prior accounting standard ASC605, cost of revenues
for the fourth quarter of 2018 would have been RMB217.2 million (US$31.6
million), which would have represented an increase of 4.1%
from RMB208.7 million in the
fourth quarter of 2017. The decrease in cost of revenues under
the new accounting standard was mainly due to:
- The sales taxes and surcharges were RMB35.8 million (US$5.2
million) in the fourth quarter of 2018, which was excluded
from cost of revenues and recorded as a reduction item of revenues
under the new accounting standard, as compared to sales taxes and
surcharges of RMB39.9 million in the
fourth quarter of 2017, which was recorded as a component of cost
of revenues under the prior accounting standard ASC605.
- Content and operational costs for the fourth quarter of 2018
increased to RMB153.9 million
(US$22.4 million) from RMB143.6 million in the fourth quarter of 2017,
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 2018 increased to RMB13.2 million (US$1.9
million) from RMB12.4 million
in the fourth quarter of 2017, primarily attributable to the
increase in fees paid to some channel partners, and partially
offset by the decrease in the revenue sharing fees of MVAS products
to telecom operators.
- Bandwidth costs for the fourth quarter of 2018 increased to
RMB14.2 million (US$2.1 million) from RMB12.8 million in the fourth quarter of
2017.
- Share-based compensation included in cost of revenues was
RMB2.5 million (US$0.4 million) in the fourth quarter of 2018, as
compared to RMB1.2 million in the
fourth quarter of 2017. The change was mainly due to the adjustment
of the estimated forfeiture rate of share-based awards as a result
of the demission rate of headcounts recorded in the fourth quarter
of 2018.
GROSS PROFIT
Gross profit for the fourth quarter of 2018
was RMB218.0 million (US$31.7
million), as compared to RMB253.1 million in the
fourth quarter of 2017. Gross margin for the fourth quarter of 2018
decreased slightly to 54.6% from 54.8% in the fourth quarter of
2017.
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 2018, which
excluded share-based compensation, increased slightly to 55.2% from
55.1% in the fourth quarter of 2017.
OPERATING EXPENSES AND LOSS FROM
OPERATIONS
Total operating expenses for the fourth quarter of
2018 slightly decreased by 0.6% to RMB257.0 million (US$37.4 million) from RMB258.5 million in the fourth quarter of
2017. Share-based compensation included in operating
expenses was RMB2.1 million
(US$0.3 million) in the fourth
quarter of 2018, as compared to RMB3.5
million in the fourth quarter of 2017. As the Company
recognized share-based compensation, net of estimated forfeitures,
on a graded-vesting basis over the vesting term of the awards,
there was less share-based compensation recognized in the
fourth quarter of 2018 for share options granted prior to
2018.
Loss from operations for the fourth quarter of 2018 was
RMB39.0 million (US$5.7 million), as compared to RMB5.4 million in the fourth quarter of 2017.
Operating margin for the fourth quarter of 2018 decreased to
negative 9.8% from negative 1.2% in the fourth quarter of 2017,
which was primarily due to the decrease in revenues resulting from
the impact of the 14-day temporary service suspension and the
slowdown of the macroeconomics.
Non-GAAP loss from operations for the fourth quarter
of 2018, which excluded share-based compensation, was
RMB34.4 million (US$5.0 million), as compared to non-GAAP loss
from operations of RMB0.8 million in
the fourth quarter of 2017. Non-GAAP operating margin for the
fourth quarter of 2018, which excluded share-based
compensation, decreased to negative 8.6% from
negative 0.2% in the fourth quarter of 2017.
OTHER INCOME OR LOSS
Other income or loss reflects interest income, interest expense,
foreign currency exchange gain or loss, income or loss from equity
method investments, net of impairments, and others,
net[4]. Total net other
income for the fourth quarter of 2018 was RMB19.7 million (US$2.9
million), as compared to RMB19.9
million in the fourth quarter of 2017.
- Interest income for the fourth quarter of 2018 decreased to
RMB8.6 million (US$1.3 million) from RMB13.2 million in the fourth quarter of
2017.
- Interest expense for the fourth quarter of 2018 decreased to
RMB2.4 million (US$0.4 million), from RMB3.7 million in the fourth quarter of 2017,
which was primarily due to the decrease in outstanding short-term
bank loans in the fourth quarter of 2018, as compared to that of
2017.
- Foreign currency exchange loss for the fourth quarter of 2018
was RMB0.3 million (US$0.05 million), as compared to foreign currency
exchange loss of RMB4.5 million in
the fourth quarter of 2017, which was mainly caused by the less
significant appreciation of Renminbi against US dollars in the
fourth quarter of 2018 as compared to that of 2017 that generated
less exchange loss in Renminbi denominated borrowings recorded in
the Company's subsidiaries whose functional currency is not
Renminbi.
- Income from equity method investments for the fourth quarter of
2018, net of impairments, was RMB4.0
million (US$0.6 million), as
compared to income from equity method investments of RMB4.9 million in the fourth quarter of
2017.
- Others, net, for the fourth quarter of 2018 decreased slightly
to RMB9.9 million (US$1.4 million), from RMB10.0 million in the fourth quarter of
2017.
NET INCOME/ (LOSS) ATTRIBUTABLE TO
PHOENIX NEW MEDIA
LIMITED
Net loss attributable to Phoenix New Media Limited for the
fourth quarter of 2018 was RMB38.3
million (US$5.6 million), as
compared to net income attributable to Phoenix New Media Limited of
RMB11.8 million in the fourth quarter
of 2017. Net margin for the fourth quarter of 2018 decreased to
negative 9.6% from positive 2.6% in the fourth quarter of 2017. Net
loss per diluted ADS[5] in the fourth quarter of 2018
was RMB0.53 (US$0.08), as compared to net income per
diluted ADS of RMB0.16 in the
fourth quarter of 2017.
Non-GAAP net loss attributable to Phoenix New Media Limited
for the fourth quarter of 2018, which excluded share-based
compensation and income or loss from equity method investments, net
of impairments, was RMB37.7 million
(US$5.5 million), as compared to
non-GAAP net income attributable to Phoenix New Media Limited of
RMB11.6 million in the fourth
quarter of 2017. Non-GAAP net margin for the fourth quarter of 2018
decreased to negative 9.4% from positive 2.5% in the fourth quarter
of 2017. Non-GAAP net loss per diluted ADS in the fourth
quarter of 2018 was RMB0.52
(US$0.08), as compared
to non-GAAP net income per diluted ADS of RMB0.16 in
the fourth quarter of 2017.
For the fourth quarter of 2018, the Company's weighted average
number of ADSs used in the computation of diluted net loss per ADS
was 72,767,164. As of December 31,
2018, the Company had a total of 582,149,952 ordinary shares
outstanding, or the equivalent of 72,768,744 ADSs.
CERTAIN BALANCE SHEET ITEMS
As of December 31, 2018, the
Company's cash and cash equivalents, term deposits and short term
investments and restricted cash were RMB1.36
billion (US$197.3 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 2018 Financial Results
The impact of applying the new accounting standard on the
Company's unaudited financial results as compared to the prior
accounting standard for the year ended December 31, 2018 was as follows:
|
Year Ended December
31, 2018
|
|
|
Prior
Accounting
Standard (1)
|
Adjustments
|
New
Accounting
Standard (2)
|
|
|
|
Sales
Taxes And
Surcharges
|
|
Barter
Transactions
|
|
Contract
Fulfillment Costs
|
|
|
|
(RMB in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
1,495,691
|
|
(122,962)
|
|
4,650
|
|
-
|
|
1,377,379
|
Net advertising
revenues
|
1,306,930
|
|
(113,309)
|
|
4,650
|
|
-
|
|
1,198,271
|
Paid services
revenues
|
188,761
|
|
(9,653)
|
|
-
|
|
-
|
|
179,108
|
Cost of
revenues
|
(719,213)
|
|
122,962
|
|
(454)
|
|
157
|
|
(596,548)
|
Gross
profit
|
776,478
|
|
-
|
|
4,196
|
|
157
|
|
780,831
|
Operating
expenses
|
(900,536)
|
|
-
|
|
(4,317)
|
|
-
|
|
(904,853)
|
Sales and marketing
expenses
|
(533,245)
|
|
-
|
|
(4,317)
|
|
-
|
|
(537,562)
|
Loss from operations
|
(124,058)
|
|
-
|
|
(121)
|
|
157
|
|
(124,022)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
(1) This financial information for the year ended
December 31, 2018 was presented
under the prior accounting standard (ASC605).
(2) This financial information for the year ended
December 31, 2018 was presented
under the new accounting standard (ASC606).
REVENUES
Total revenues for fiscal year 2018 were
RMB1.38 billion (US$200.3 million) under the new accounting
standard, which represents a decrease of
12.6% from RMB1.58 billion in fiscal year 2017.
Net advertising revenues for fiscal year 2018 were
RMB1.20 billion (US$174.3 million) (net of advertising agency
service fees and sales taxes and surcharges) under the
new accounting standard, which represented a decrease of 11.5% from
RMB1.35 billion in fiscal year
2017.
Paid service revenues for fiscal year 2018 were
RMB179.1 million (US$26.1 million) under the new accounting
standard, which represented a decrease of 19.2%
from RMB221.6 million in fiscal year 2017.
Under the prior accounting standard ASC605, total revenues
for fiscal year 2018 would have decreased by 5.0% to
RMB1.50 billion (US$217.5 million) from RMB1.58 billion
in fiscal year 2017.
Under the prior accounting standard ASC605, net advertising
revenues (net of advertising agency service fees and sales
taxes and surcharges) for fiscal year 2018 would
have decreased by 3.4% to RMB1.31
billion (US$190.1
million) from RMB1.35 billion in fiscal year
2017, primarily due to the decrease in PC advertising
revenues, which was partially offset by the
28.9% year-over-year growth in mobile application
advertising revenues.
Under the prior accounting standard ASC605, paid service
revenues for fiscal year 2018 would have decreased by
14.8% to RMB188.8 million (US$27.5 million) from RMB221.6 million
in fiscal year 2017, which was primarily due to the 39.5%
year-over-year decrease of revenues from MVAS products.
COST OF REVENUES AND GROSS
PROFIT
Cost of revenues for fiscal year 2018 was RMB596.5 million (US$86.8
million) under the new accounting standard, which
represented a decrease of 18.0% from RMB727.2 million in fiscal year 2017. Under the
prior accounting standard ASC605, cost of revenues for fiscal year
2018 would have been RMB719.2 million
(US$104.6 million), which would have
represented a decrease of 1.1% from RMB727.2
million in fiscal year 2017. Share-based compensation
included in cost of revenues was RMB3.7
million (US$0.5 million) in
fiscal year 2018, as compared to RMB5.0
million in fiscal year 2017. As the Company recognized
share-based compensation, net of estimated forfeitures, on a
graded-vesting basis over the vesting term of the awards, there was
less share-based compensation recognized in fiscal year 2018 for
share options granted prior to 2018.
Gross profit for fiscal year 2018 decreased to RMB780.8 million (US$113.6 million) from RMB847.9 million in fiscal year
2017. Gross margin for fiscal year 2018 increased to
56.7% from 53.8% in fiscal year 2017. Non-GAAP gross margin,
which excludes share-based compensation, for fiscal year 2018
increased to 57.0% from 54.2% in fiscal year 2017.
OPERATING EXPENSES AND INCOME/(LOSS)
FROM OPERATIONS
Total operating expenses for fiscal year 2018 increased
to RMB904.8 million (US$131.6
million) from RMB832.9 million in fiscal year
2017. The increase in operating expenses was primarily
attributable to the increase in mobile traffic acquisition
expenses. Share-based compensation included in operating expenses
decreased to RMB10.2 million
(US$1.5 million) in fiscal year 2018
from RMB15.8 million in fiscal year
2017. As the Company recognized share-based compensation, net of
estimated forfeitures, on a graded-vesting basis over the vesting
term of the awards, there was less share-based compensation
recognized in fiscal year 2018 for share options granted prior to
2018.
Loss from operations for fiscal year 2018 was RMB124.0 million (US$18.0
million), as compared to income from operations of
RMB15.0 million in fiscal year 2017.
Operating margin for fiscal year 2018 was negative 9.0%, as
compared to positive 1.0% in fiscal year 2017.
Non-GAAP loss from operations, which excluded share-based
compensation, for fiscal year 2018 was RMB110.0 million (US$16.0 million), as compared to non-GAAP
income from operations of RMB35.8
million in fiscal year 2017. Non-GAAP operating margin for
fiscal year 2018 was negative 8.0%, as compared to positive 2.3% in
fiscal year 2017.
NET INCOME/(LOSS) ATTRIBUTABLE TO
PHOENIX NEW MEDIA
LIMITED
Net loss attributable to Phoenix New Media Limited for fiscal
year 2018 was RMB63.2 million
(US$9.2 million), as compared to
net income attributable to Phoenix New Media of RMB37.5 million in fiscal year 2017. Net
margin for fiscal year 2018 was negative 4.6%, as compared to
positive 2.4% in fiscal year 2017. Net loss per diluted ADS
for fiscal year 2018 was RMB0.87
(US$0.13), as compared to net
income per diluted ADS of RMB0.51 in fiscal year 2017.
Non-GAAP net loss attributable to Phoenix New Media Limited for
fiscal year 2018, which excluded share-based compensation and
income/(loss) from equity method investments, net of impairments,
was RMB54.6 million (US$7.9 million), as compared to non-GAAP net
income attributable to Phoenix New Media Limited of RMB52.0 million in fiscal year 2017. Non-GAAP net
margin for fiscal year 2018 was negative 4.0%, as compared to
positive 3.3% in fiscal year 2017. Non-GAAP net loss per diluted
ADS for fiscal year 2018 was RMB0.75
(US$0.11), as compared to non-GAAP
net income per diluted ADS of RMB0.70
in fiscal year 2017.
Business Outlook
For the first quarter of 2019, the Company expects its
total revenues to be between RMB254.8
million and RMB274.8 million;
net advertising revenues are expected to be between RMB193.8 million and RMB208.8 million; and paid services revenues
are expected to be between RMB61.0
million and RMB66.0
million.
All of the above forecasts reflect the Company's current and
preliminary view on the market and operational conditions, which
are subject to change.
Conference Call Information
The Company will hold a conference call at 9:00 p.m.
U.S. Eastern Time on March 18,
2019 (March 19, 2019 at
9:00 a.m. Beijing/Hong
Kong time) to discuss its fourth quarter and fiscal
year 2018 unaudited financial results and operating
performance.
To participate in the call, please use the dial-in numbers and
conference ID below:
International:
|
+65
67135440
|
Mainland
China:
|
4001200654
|
Hong Kong:
|
+852
30186776
|
United States:
|
+1
8456750438
|
United
Kingdom:
|
08000159724
|
Australia:
|
1300713759
|
Conference
ID:
|
7279276
|
A replay of the call will be available through March 26, 2019 by using the dial-in numbers and
conference ID below:
International:
|
+61
290034211
|
Mainland
China:
|
4006322162
|
Hong
Kong:
|
+852
30512780
|
United
States:
|
+1
6462543697
|
Conference
ID:
|
7279276
|
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
http://ir.ifeng.com.
Use of Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in
accordance with the United States Generally Accepted
Accounting Principles ("GAAP"), Phoenix New Media Limited
uses non-GAAP gross profit, non-GAAP gross margin,
non-GAAP income or loss from operations, non-GAAP operating margin,
non-GAAP net income or loss attributable to Phoenix New Media
Limited, non-GAAP net margin and non-GAAP net income
or loss per diluted ADS, each of which is a non-GAAP financial
measure. Non-GAAP gross profit is gross profit excluding
share-based compensation. Non-GAAP gross margin is non-GAAP
gross profit divided by total revenues. Non-GAAP income or loss
from operations is income or loss from operations excluding
share-based compensation. Non-GAAP operating margin is non-GAAP
income or loss from operations divided by total revenues. Non-GAAP
net income or loss attributable to Phoenix New Media Limited is net
income or loss attributable to Phoenix New Media Limited
excluding share-based compensation and income or loss from
equity method investments, net of impairments. Non-GAAP net
margin is non-GAAP net income or loss attributable to
Phoenix New Media Limited divided by total revenues. Non-GAAP
net income or loss per diluted ADS is non-GAAP net income or loss
attributable to Phoenix New Media Limited divided by weighted
average number of diluted ADSs. The Company believes that separate
analysis and exclusion of the aforementioned non-GAAP to GAAP
reconciling items add clarity to the constituent parts of its
performance. The Company reviews these non-GAAP financial
measures together with the related GAAP financial
measures to obtain a better understanding of its operating
performance. It uses these non-GAAP financial measures for
planning, forecasting and measuring results against the forecast.
The Company believes that using these non-GAAP financial measures
to evaluate its business allows both management and investors
to assess the Company's performance against its competitors
and ultimately monitor its capacity to generate returns for
investors. The Company also believes that these
non-GAAP financial measures are useful supplemental
information for investors and analysts to assess its operating
performance without the effect of items like share-based
compensation and income or loss from equity method
investments, net of impairments, which have been and will
continue to be significant and recurring in its business. However,
the use of these non-GAAP financial measures has material
limitations as an analytical tool. One of the limitations of using
these non-GAAP financial measures is that they do not
include all items that impact the Company's gross profit, income or
loss from operations and net income or loss attributable to
Phoenix New Media Limited for the period. In addition, because
these non-GAAP financial measures are not
calculated in the same manner by all companies, they may
not be comparable to other similarly titled measures used by
other companies. In light of the foregoing limitations, you should
not consider these non-GAAP financial measures in isolation from,
or as an alternative to, the financial measures prepared in
accordance with GAAP.
Exchange Rate
This announcement contains translations of certain RMB amounts
into U.S. dollars ("USD") at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to USD were made at the rate of RMB6.8755 to US$1.00, the noon buying rate in effect on
December 31, 2018 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 such as news, finance, fashion, military and
digital reading, and interactive services; its mobile channel,
consisting of mobile news applications, mobile video application,
HTML5-based mobile Internet websites, and mobile digital reading
application; and its operations with the telecom operators that
provides content and mobile value-added services.
Safe Harbor Statement
This announcement contains forward−looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward−looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as Phoenix New Media's strategic and
operational plans, contain forward−looking statements. Phoenix New
Media may also make written or oral forward−looking statements in
its periodic reports to the U.S. Securities and Exchange Commission
("SEC") on Forms 20−F and 6−K, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts,
including statements about Phoenix New Media's beliefs and
expectations, are forward−looking statements. Forward−looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward−looking statement, including but not
limited to the following: the Company's goals and strategies; the
Company's future business development, financial condition and
results of operations; the expected growth of online and mobile
advertising, online video and mobile paid services markets in
China; the Company's reliance on
online and mobile advertising and MVAS for a majority of its total
revenues; the Company's expectations regarding demand for and
market acceptance of its services; the Company's expectations
regarding maintaining and strengthening its relationships with
advertisers, partners and customers; the Company's investment plans
and strategies, fluctuations in the Company's quarterly operating
results; the Company's plans to enhance its user experience,
infrastructure and services offerings; the Company's reliance on
mobile operators in China to
provide most of its MVAS; changes by mobile operators in
China to their policies for MVAS;
competition in its industry in China; and relevant government policies and
regulations relating to the Company. Further information regarding
these and other risks is included in the Company's filings with the
SEC, including its registration statement on Form F−1, as
amended, and its annual reports on Form 20−F. All information
provided in this press release and in the attachments is as of the
date of this press release, and Phoenix New Media does not
undertake any obligation to update any forward−looking statement,
except as required under applicable law.
[1] Paid services revenues comprise
of (i) revenues from digital entertainment, which includes
MVAS and digital reading, and (ii) revenues from games and
others, which includes web-based games, mobile games, content
sales, and other online and mobile paid services through the
Company's own platforms.
|
[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, content
sales, and other online and mobile paid services through the
Company's own platforms.
|
[4] "Others, net" primarily
consists of government subsidies and litigation loss
provisions.
|
[5]
"ADS" means American Depositary Share of the Company. Each ADS
represents eight Class A ordinary shares of the Company.
|
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,
|
2017
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
US$
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
362,862
|
|
174,024
|
|
25,311
|
Term deposits and
short term investments
|
737,657
|
|
912,594
|
|
132,731
|
Restricted
cash
|
336,700
|
|
269,648
|
|
39,219
|
Accounts receivable,
net
|
458,744
|
|
484,113
|
|
70,411
|
Amounts due from
related parties
|
187,214
|
|
91,228
|
|
13,269
|
Prepayment and other
current assets
|
57,458
|
|
88,963
|
|
12,938
|
Convertible loans due
from a related party
|
102,631
|
|
-
|
|
-
|
Total current
assets
|
2,243,266
|
|
2,020,570
|
|
293,879
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
64,454
|
|
95,631
|
|
13,909
|
Intangible assets,
net
|
6,712
|
|
97,448
|
|
14,173
|
Goodwill
|
-
|
|
338,288
|
|
49,202
|
Available-for-sale
debt investments
|
1,196,330
|
|
1,961,474
|
|
285,285
|
Equity investments,
net
|
15,342
|
|
33,694
|
|
4,901
|
Deferred tax
assets
|
60,460
|
|
60,160
|
|
8,750
|
Other non-current
assets
|
12,544
|
|
23,454
|
|
3,411
|
Total non-current
assets
|
1,355,842
|
|
2,610,149
|
|
379,631
|
Total
assets
|
3,599,108
|
|
4,630,719
|
|
673,510
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
loans
|
330,000
|
|
267,665
|
|
38,930
|
Accounts
payable
|
262,657
|
|
264,753
|
|
38,507
|
Amounts due to related
parties
|
14,140
|
|
25,218
|
|
3,668
|
Advances from
customers
|
65,196
|
|
54,601
|
|
7,941
|
Taxes
payable
|
92,214
|
|
101,386
|
|
14,746
|
Salary and welfare
payable
|
134,471
|
|
132,316
|
|
19,245
|
Accrued expenses and
other current liabilities
|
173,253
|
|
227,328
|
|
33,063
|
Total current
liabilities
|
1,071,931
|
|
1,073,267
|
|
156,100
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
1,312
|
|
140,960
|
|
20,502
|
Long-term
liabilities
|
24,714
|
|
26,131
|
|
3,801
|
Total non-current
liabilities
|
26,026
|
|
167,091
|
|
24,303
|
Total
liabilities
|
1,097,957
|
|
1,240,358
|
|
180,403
|
Shareholders'
equity:
|
|
|
|
|
|
Phoenix New Media
Limited shareholders' equity:
|
|
|
|
|
|
Class A ordinary
shares
|
17,180
|
|
17,487
|
|
2,543
|
Class B ordinary
shares
|
22,053
|
|
22,053
|
|
3,207
|
Additional paid-in
capital
|
1,587,575
|
|
1,604,588
|
|
233,378
|
Statutory
reserves
|
81,237
|
|
87,620
|
|
12,744
|
Retained
earnings
|
229,250
|
|
159,621
|
|
23,215
|
Accumulated other
comprehensive income
|
570,244
|
|
1,188,358
|
|
172,840
|
Total Phoenix New
Media Limited shareholders' equity
|
2,507,539
|
|
3,079,727
|
|
447,927
|
Noncontrolling
interests
|
(6,388)
|
|
310,634
|
|
45,180
|
Total
shareholders' equity
|
2,501,151
|
|
3,390,361
|
|
493,107
|
Total liabilities
and shareholders' equity
|
3,599,108
|
|
4,630,719
|
|
673,510
|
|
|
|
|
|
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 26, 2018.
|
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,
|
|
2017
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising revenues
|
410,547
|
|
281,500
|
|
355,979
|
|
51,775
|
|
1,353,480
|
|
1,198,271
|
|
174,281
|
Paid service
revenues
|
51,240
|
|
47,840
|
|
43,255
|
|
6,291
|
|
221,612
|
|
179,108
|
|
26,050
|
Total
revenues
|
461,787
|
|
329,340
|
|
399,234
|
|
58,066
|
|
1,575,092
|
|
1,377,379
|
|
200,331
|
Cost of
revenues
|
(208,679)
|
|
(152,236)
|
|
(181,272)
|
|
(26,365)
|
|
(727,197)
|
|
(596,548)
|
|
(86,764)
|
Gross
profit
|
253,108
|
|
177,104
|
|
217,962
|
|
31,701
|
|
847,895
|
|
780,831
|
|
113,567
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses
|
(156,590)
|
|
(140,998)
|
|
(155,522)
|
|
(22,620)
|
|
(493,664)
|
|
(537,562)
|
|
(78,185)
|
General and
administrative expenses
|
(50,457)
|
|
(41,692)
|
|
(44,670)
|
|
(6,497)
|
|
(146,923)
|
|
(162,568)
|
|
(23,645)
|
Technology and
product development
expenses
|
(51,494)
|
|
(50,969)
|
|
(56,819)
|
|
(8,264)
|
|
(192,325)
|
|
(204,723)
|
|
(29,776)
|
Total operating
expenses
|
(258,541)
|
|
(233,659)
|
|
(257,011)
|
|
(37,381)
|
|
(832,912)
|
|
(904,853)
|
|
(131,606)
|
(Loss)/income from
operations
|
(5,433)
|
|
(56,555)
|
|
(39,049)
|
|
(5,680)
|
|
14,983
|
|
(124,022)
|
|
(18,039)
|
Other
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
13,213
|
|
12,349
|
|
8,608
|
|
1,252
|
|
54,286
|
|
47,445
|
|
6,901
|
Interest
expense
|
(3,746)
|
|
(3,080)
|
|
(2,442)
|
|
(355)
|
|
(22,221)
|
|
(13,544)
|
|
(1,970)
|
Foreign
currency exchange (loss)/gain
|
(4,481)
|
|
6,066
|
|
(317)
|
|
(46)
|
|
(23,560)
|
|
6,849
|
|
996
|
Income from
equity method investments, net
of impairments
|
4,865
|
|
4,240
|
|
3,977
|
|
578
|
|
6,296
|
|
5,352
|
|
778
|
Gain on
disposal of convertible loans due
from a related party
|
-
|
|
10,565
|
|
-
|
|
-
|
|
-
|
|
10,565
|
|
1,537
|
Others,
net
|
10,037
|
|
5,773
|
|
9,854
|
|
1,433
|
|
19,423
|
|
21,848
|
|
3,178
|
Income/(loss)
before tax
|
14,455
|
|
(20,642)
|
|
(19,369)
|
|
(2,818)
|
|
49,207
|
|
(45,507)
|
|
(6,619)
|
Income tax
(expense)/benefit
|
(3,294)
|
|
3,889
|
|
(20,220)
|
|
(2,941)
|
|
(14,783)
|
|
(20,105)
|
|
(2,924)
|
Net
income/(loss)
|
11,161
|
|
(16,753)
|
|
(39,589)
|
|
(5,759)
|
|
34,424
|
|
(65,612)
|
|
(9,543)
|
Net loss
attributable to noncontrolling
interests
|
660
|
|
127
|
|
1,292
|
|
188
|
|
3,048
|
|
2,390
|
|
348
|
Net income/(loss)
attributable to Phoenix
New Media Limited
|
11,821
|
|
(16,626)
|
|
(38,297)
|
|
(5,571)
|
|
37,472
|
|
(63,222)
|
|
(9,195)
|
Net
income/(loss)
|
11,161
|
|
(16,753)
|
|
(39,589)
|
|
(5,759)
|
|
34,424
|
|
(65,612)
|
|
(9,543)
|
Other
comprehensive income, net of tax: fair
value remeasurement for
available-for-
sale
investments**
|
22,227
|
|
52,111
|
|
462,558
|
|
67,276
|
|
321,538
|
|
566,320
|
|
82,368
|
Other
comprehensive (loss)/income, net of
tax: foreign currency
translation
adjustment
|
(14,609)
|
|
39,966
|
|
(2,534)
|
|
(369)
|
|
(49,640)
|
|
51,794
|
|
7,533
|
Comprehensive
income
|
18,779
|
|
75,324
|
|
420,435
|
|
61,148
|
|
306,322
|
|
552,502
|
|
80,358
|
Comprehensive
loss attributable to
noncontrolling
interests
|
660
|
|
127
|
|
1,292
|
|
188
|
|
3,048
|
|
2,390
|
|
348
|
Comprehensive
income attributable to
Phoenix New Media
Limited
|
19,439
|
|
75,451
|
|
421,727
|
|
61,336
|
|
309,370
|
|
554,892
|
|
80,706
|
Net income/(loss)
attributable to Phoenix
New Media Limited
|
11,821
|
|
(16,626)
|
|
(38,297)
|
|
(5,571)
|
|
37,472
|
|
(63,222)
|
|
(9,195)
|
Net
income/(loss) per Class A and Class B
ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.02
|
|
(0.03)
|
|
(0.07)
|
|
(0.01)
|
|
0.07
|
|
(0.11)
|
|
(0.02)
|
Diluted
|
0.02
|
|
(0.03)
|
|
(0.07)
|
|
(0.01)
|
|
0.06
|
|
(0.11)
|
|
(0.02)
|
Net
income/(loss) per ADS (1 ADS represents
8 Class A ordinary shares):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.16
|
|
(0.23)
|
|
(0.53)
|
|
(0.08)
|
|
0.52
|
|
(0.87)
|
|
(0.13)
|
Diluted
|
0.16
|
|
(0.23)
|
|
(0.53)
|
|
(0.08)
|
|
0.51
|
|
(0.87)
|
|
(0.13)
|
Weighted average
number of Class A and
Class B ordinary shares used in computing
net income/(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
576,851,243
|
|
581,962,548
|
|
582,137,314
|
|
582,137,314
|
|
574,786,887
|
|
581,084,453
|
|
581,084,453
|
Diluted
|
591,174,724
|
|
581,962,548
|
|
582,137,314
|
|
582,137,314
|
|
590,433,907
|
|
581,084,453
|
|
581,084,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Derived
from audited financial statements included in the Company's Form
20-F dated April 26, 2018.
** The Company
adopted ASU 2016-1, Recognition and Measurement of Financial Assets
and Financial Liabilities, beginning from January 1, 2018. After
the adoption of this new accounting standard, the Company measures
long-
term equity investments, other than those accounted for under the
equity method, at fair value through earnings. As investments in
Particle meet the definition of debt securities, which are recorded
as available-for-sale investments,
there is no impact of the adoption of ASU 2016-1 on the
available-for-sale investments in Particle and the changes in their
fair value continue to be recorded in other comprehensive
income.
|
|
There were minor
revisions to revenues and cost of revenues for the previous
quarters of 2018, which were determined as immaterial adjustment
under SEC Staff Accounting Bulletin: No. 99 –
Materiality.
|
Phoenix New Media
Limited
|
Condensed Segment
Information
|
(Amounts in
thousands)
|
|
|
Three Months
Ended
|
|
Twelve Months Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
410,547
|
|
281,500
|
|
355,979
|
|
51,775
|
|
1,353,480
|
|
1,198,271
|
|
174,281
|
Paid
service
|
51,240
|
|
47,840
|
|
43,255
|
|
6,291
|
|
221,612
|
|
179,108
|
|
26,050
|
Total
revenues
|
461,787
|
|
329,340
|
|
399,234
|
|
58,066
|
|
1,575,092
|
|
1,377,379
|
|
200,331
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
181,361
|
|
132,519
|
|
166,652
|
|
24,239
|
|
602,945
|
|
517,533
|
|
75,272
|
Paid
service
|
27,318
|
|
19,717
|
|
14,620
|
|
2,126
|
|
124,252
|
|
79,015
|
|
11,492
|
Total cost of
revenues
|
208,679
|
|
152,236
|
|
181,272
|
|
26,365
|
|
727,197
|
|
596,548
|
|
86,764
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
229,186
|
|
148,981
|
|
189,327
|
|
27,536
|
|
750,535
|
|
680,738
|
|
99,009
|
Paid
service
|
23,922
|
|
28,123
|
|
28,635
|
|
4,165
|
|
97,360
|
|
100,093
|
|
14,558
|
Total gross
profit
|
253,108
|
|
177,104
|
|
217,962
|
|
31,701
|
|
847,895
|
|
780,831
|
|
113,567
|
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 26, 2018.
|
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,
|
|
2017
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue sharing
fees
|
12,350
|
|
14,261
|
|
13,201
|
|
1,920
|
|
72,613
|
|
47,539
|
|
6,914
|
Content and
operational costs
|
143,588
|
|
123,281
|
|
153,866
|
|
22,379
|
|
466,379
|
|
491,868
|
|
71,539
|
Bandwidth
costs
|
12,830
|
|
14,694
|
|
14,205
|
|
2,066
|
|
55,050
|
|
57,141
|
|
8,311
|
Sales taxes and
surcharges**
|
39,911
|
|
-
|
|
-
|
|
-
|
|
133,155
|
|
-
|
|
-
|
Total cost of
revenues
|
208,679
|
|
152,236
|
|
181,272
|
|
26,365
|
|
727,197
|
|
596,548
|
|
86,764
|
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 26, 2018.
|
** The sales taxes
and surcharges in the quarters of 2018 and the fiscal year 2018
were excluded from cost of revenues and recorded as a reduction of
revenues under the new revenue recognition accounting standard
(ASC606), while sales taxes and surcharges in the quarters of 2017
and fiscal year 2017 were recorded as a component of cost of
revenues under the prior accounting standard (ASC605).
|
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, 2017
|
|
Three Months Ended
September 30, 2018
|
|
Three Months Ended
December 31, 2018
|
|
|
|
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
|
253,108
|
|
1,221
|
(1)
|
254,329
|
|
177,104
|
|
442
|
(1)
|
177,546
|
|
217,962
|
|
2,469
|
(1)
|
220,431
|
Gross
margin
|
54.8%
|
|
|
|
55.1%
|
|
53.8%
|
|
|
|
53.9%
|
|
54.6%
|
|
|
|
55.2%
|
(Loss)/income
from
operations
|
(5,433)
|
|
4,677
|
(1)
|
(756)
|
|
(56,555)
|
|
2,535
|
(1)
|
(54,020)
|
|
(39,049)
|
|
4,614
|
(1)
|
(34,435)
|
Operating
margin
|
(1.2%)
|
|
|
|
(0.2%)
|
|
(17.2%)
|
|
|
|
(16.4%)
|
|
(9.8%)
|
|
|
|
(8.6%)
|
|
|
|
4,677
|
(1)
|
|
|
|
|
2,535
|
(1)
|
|
|
|
|
4,614
|
(1)
|
|
|
|
|
(4,865)
|
(2)
|
|
|
|
|
(4,240)
|
(2)
|
|
|
|
|
(3,977)
|
(2)
|
|
Net
income/(loss)
attributable to
Phoenix New
Media Limited
|
11,821
|
|
(188)
|
|
11,633
|
|
(16,626)
|
|
(1,705)
|
|
(18,331)
|
|
(38,297)
|
|
637
|
|
(37,660)
|
Net margin
|
2.6%
|
|
|
|
2.5%
|
|
(5.0%)
|
|
|
|
(5.6%)
|
|
(9.6%)
|
|
|
|
(9.4%)
|
Net income/(loss)
per
ADS—diluted
|
0.16
|
|
|
|
0.16
|
|
(0.23)
|
|
|
|
(0.25)
|
|
(0.53)
|
|
|
|
(0.52)
|
Weighted average
number of ADSs
used in computing
diluted net
income/(loss) per
ADS
|
73,896,840
|
|
|
|
73,896,840
|
|
72,745,318
|
|
|
|
72,745,318
|
|
72,767,164
|
|
|
|
72,767,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation
|
(2) Income from
equity method investments, net of 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, 2017
|
|
Twelve Months
Ended December 31, 2018
|
|
|
|
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
|
847,895
|
|
5,017
|
(1)
|
852,912
|
|
780,831
|
|
3,750
|
(1)
|
784,581
|
Gross
margin
|
53.8%
|
|
|
|
54.2%
|
|
56.7%
|
|
|
|
57.0%
|
Income/(loss) from
operations
|
14,983
|
|
20,852
|
(1)
|
35,835
|
|
(124,022)
|
|
13,989
|
(1)
|
(110,033)
|
Operating
margin
|
1.0%
|
|
|
|
2.3%
|
|
(9.0%)
|
|
|
|
(8.0%)
|
|
|
|
20,852
|
(1)
|
|
|
|
|
13,989
|
(1)
|
|
|
|
|
(6,296)
|
(2)
|
|
|
|
|
(5,352)
|
(2)
|
|
Net income/(loss)
attributable to Phoenix
New Media Limited
|
37,472
|
|
14,556
|
|
52,028
|
|
(63,222)
|
|
8,637
|
|
(54,585)
|
Net margin
|
2.4%
|
|
|
|
3.3%
|
|
(4.6%)
|
|
|
|
(4.0%)
|
Net income/(loss) per
ADS—diluted
|
0.51
|
|
|
|
0.70
|
|
(0.87)
|
|
|
|
(0.75)
|
Weighted average
number of ADSs used in
computing diluted net income/(loss)
per
ADS
|
73,804,238
|
|
|
|
73,804,238
|
|
72,635,557
|
|
|
|
72,635,557
|
|
(1) Share-based
compensation
|
(2) Income from
equity method investments, net of impairments
|
|
Non-GAAP to
GAAP reconciling items have no income tax effect.
|
View original
content:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-fourth-quarter-and-fiscal-year-2018-unaudited-financial-results-300813973.html
SOURCE Phoenix New Media Limited