BEIJING, May 14, 2017 /PRNewswire/ -- Phoenix New
Media Limited (NYSE: FENG), a leading new media company in
China ("Phoenix New Media",
"ifeng" or the "Company"), today announced its unaudited financial
results for the first quarter ended March
31, 2017.
"We entered the year of 2017 with a challenging first quarter
due to the continuing headwinds and changes in the Chinese
advertising industry," stated Mr. Shuang
Liu, CEO of Phoenix New Media. "However, we are pleased to
see continued strengths on our ifeng news application, (we also see
similar situation in Yidian Zixun, "Yidian" 1, a
strategic investment of ifeng), as our mobile strategy continues to
gain traction. Leveraging our strong media DNA and cutting-edge
technology, we remain focused on providing our users with
high-quality, professional media content tailored to their
interests on their preferred medium. ifeng news application's daily
active users increased by more than 10% quarter over quarter
notwithstanding the Chinese New Year
period in the first quarter when media outlets normally experience
traffic drops. This clearly demonstrates that our differentiated
media content is a top choice for high-end users and further
underscores our achievements in balancing algorithm-driven news
feeds and high-quality journalism that meets our users'
individualized needs and interests. We remain confident that we
have the right team and strategy in place to withstand the
headwinds in the market and expand our market share with the
increasing demand of newsfeed services throughout China."
Mr. Ya Li, co-president of Phoenix New Media, further stated,
"In the past quarter, we continued to focus on and invest in
content development, particularly through our consolidated we-media
business and Feng Zhibo, our own live broadcasting brand. We live
broadcasted more than 1,600 sessions in the first quarter of 2017,
all of which were highly popular with our users and provided
potential monetization opportunities. Looking ahead, in the mobile
Internet era, the credibility of media outlets is becoming
increasingly more important to both users and communities.
Leveraging ifeng news application, we will be able to find the
ideal balance between algorithm-driven content and professional
journalism, making us one of the most efficient and valuable mobile
gateways for Chinese users' media consumption, rather than a simple
tool of news aggregation and distribution. We believe it applies to
Yidian as well."
First Quarter 2017 Financial Results
REVENUES
Total revenues for the first
quarter of 2017 were RMB294.5 million
(US$42.8 million), as compared to
RMB322.9 million in the first quarter
of 2016.
Net advertising revenues (net of advertising agency service
fees) for the first quarter of 2017 were RMB241.1 million (US$35.0
million), as compared to RMB271.4
million in the first quarter of 2016, primarily
attributable to the 21.5% decrease in PC advertising revenues.
Paid services revenues2 for the first quarter of 2017
increased to RMB53.4 million
(US$7.8 million) from RMB51.6 million in the first quarter of 2016.
Revenues from digital entertainment3 increased to
RMB42.3 million (US$6.2 million) from RMB36.2 million in the first quarter of 2016,
primarily attributable to the increase in digital reading revenues
from RMB7.1 million in the first
quarter of 2016 to RMB14.3 million
(US$2.1 million) in the first quarter
of 2017, representing a 101.6% year-over-year increase, partially
offset by the decrease in mobile value-added services ("MVAS")
revenues from RMB29.1 million in the
first quarter of 2016 to RMB28.0
million (US$4.1 million) in
the first quarter of 2017. The decrease in MVAS revenues mainly
resulted from the decline in users' demand for services provided
through telecom operators in China, which was consistent with the Company's
expectations given the shrinking demand for such services in
general. Revenues from games and others4 for the first
quarter of 2017 decreased by 28.2% to RMB11.1 million (US$1.6
million) from RMB15.4 million
in the first quarter of 2016, which was primarily attributable to
the decrease in revenues generated from web-based games operated on
the Company's own platform.
COST OF REVENUES
Cost of revenues for the
first quarter of 2017 increased by 2.7% to RMB162.5 million (US$23.6
million) from RMB158.2 million
in the first quarter of 2016, primarily attributable to the
increase in content and operational cost. Content and operational
costs for the first quarter of 2017 increased to RMB106.3 million (US$15.4
million) from RMB95.5 million
in the first quarter of 2016, primarily attributable to the
increase in content cost and advertisement-related content
production cost. Revenue sharing fees to telecom operators and
channel partners for the first quarter of 2017 decreased to
RMB17.3 million (US$2.5 million) from RMB18.9 million in the first quarter of 2016,
primarily attributable to the decrease in the sales of MVAS
products. Bandwidth costs for the first quarter of 2017 decreased
to RMB14.5 million (US$2.1 million) from RMB17.3 million in the first quarter of 2016.
Sales taxes and surcharges for the first quarter of 2017 decreased
to RMB24.3 million (US$3.5 million) from RMB26.5 million in the first quarter of 2016.
Share-based compensation included in cost of revenues was
RMB1.6 million (US$0.2 million) in the first quarter of 2017, as
compared to RMB0.9 million in the
first quarter of 2016. The change in share-based compensation was
due to the newly granted share-based awards and the Company's
option exchange program implemented in the fourth quarter of
2016.
GROSS PROFIT
Gross profit for the first
quarter of 2017 was RMB132.0 million
(US$19.2 million), as compared to
RMB164.8 million in the first quarter
of 2016. Gross margin for the first quarter of 2017 was 44.8%, as
compared to 51.0% in the first quarter of 2016. The decrease in
gross margin was primarily attributable to the increase in content
and operational cost.
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 first quarter of 2017, which
excludes share-based compensation, was 45.4%, as compared to 51.3%
in the first quarter of 2016.
OPERATING EXPENSES AND INCOME/(LOSS) FROM
OPERATIONS
Total operating expenses for the first
quarter of 2017 increased by 6.9% to RMB172.0 million (US$25.0
million) from RMB161.0 million
in the first quarter of 2016, primarily attributable to the
increase in mobile traffic acquisition expenses. Share-based
compensation included in operating expenses was RMB6.6 million (US$1.0
million) in the first quarter of 2017, as compared to
RMB3.2 million in the first quarter
of 2016.
Loss from operations for the first quarter of 2017 was
RMB40.1 million (US$5.8 million), as compared to income from
operations of RMB3.8 million in the
first quarter of 2016. Operating margin for the first quarter of
2017 was negative 13.6%, as compared to positive 1.2% in the first
quarter of 2016, which was primarily attributable to the increase
in advertisement-related content production cost and mobile traffic
acquisition expenses.
Non-GAAP loss from operations for the first quarter of 2017,
which excludes share-based compensation, was RMB31.8 million (US$4.6
million), as compared to non-GAAP income from operations of
RMB7.9 million in the first quarter
of 2016. Non-GAAP operating margin for the first quarter of 2017,
which excludes share-based compensation, was negative 10.8%, as
compared to positive 2.4% in the first 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, net5. Total other
income for the first quarter of 2017 was RMB4.8 million (US$0.7
million), as compared to RMB10.7
million in the first quarter of 2016. Interest income for
the first quarter of 2017 was RMB12.7
million (US$1.8 million), as
compared to RMB8.1 million in the
first quarter of 2016. Interest expense for the first quarter of
2017 was RMB6.3 million (US$0.9 million), as compared to RMB0.8 million in the first quarter of 2016.
Foreign currency exchange loss for the first quarter of 2017 was
RMB2.3 million (US$0.3 million), as compared to RMB1.9 million in the first quarter of 2016. Loss
from equity investments for the first quarter of 2017, including
impairments, was RMB0.7 million
(US$0.1 million), as compared to gain
from equity investments of RMB1.0
million in the first quarter of 2016. Others, net for the
first quarter of 2017 was RMB1.4
million (US$0.2 million), as
compared to RMB4.2 million in the
first quarter of 2016.
NET
INCOME/(LOSS) ATTRIBUTABLE TO
PHOENIX NEW MEDIA
LIMITED
Net loss attributable to Phoenix New Media
Limited for the first quarter of 2017 was RMB32.2 million (US$4.7
million), as compared to net income attributable to Phoenix
New Media Limited of RMB11.6 million
in the first quarter of 2016. Net profit margin for the first
quarter of 2017 was negative 10.9%, as compared to positive 3.6% in
the first quarter of 2016. Net loss per diluted ADS6 in
the first quarter of 2017 was RMB0.45
(US$0.07), as compared to net income
per diluted ADS of RMB0.16 in the
first quarter of 2016.
Non-GAAP net loss attributable to Phoenix New Media Limited for
the first quarter of 2017, which excludes share-based compensation
and gain/(loss) from equity investments, including impairments, was
RMB23.2 million (US$3.4 million), as compared to non-GAAP net
income attributable to Phoenix New Media Limited of RMB14.7 million in the first quarter of 2016.
Non-GAAP net profit margin for the first quarter of 2017 was
negative 7.9%, as compared to positive 4.5% in the first quarter of
2016. Non-GAAP net loss per diluted ADS in the first quarter of
2017 was RMB0.32 (US$0.05), as compared to non-GAAP net income per
diluted ADS of RMB0.20 in the first
quarter of 2016.
For the first quarter of 2017, the Company's weighted average
number of ADSs used in the computation of diluted net income per
ADS was 71,741,910. As of March 31,
2017, the Company had a total of 572,259,650 ordinary shares
outstanding, or the equivalent of 71,532,456 ADSs.
CERTAIN BALANCE SHEET ITEMS
As of March 31, 2017, the Company's cash and cash
equivalents, term deposits and short term investments and
restricted cash were RMB1.37 billion
(US$199.4 million). Restricted cash
represents deposits placed as security for banking facility granted
to the Company, which are restricted as to their withdrawal or
usage.
Business Outlook
For the second quarter of 2017, the
Company expects its total revenues to be between RMB362 million and RMB382 million. Net
advertising revenues are expected to be between RMB311 million and RMB326 million. Paid services
revenues are expected to be between RMB51
million and RMB56 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 May 14, 2017
(May 15, 2017 at 9:00 a.m. Beijing/Hong
Kong time) to discuss its first 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:
|
19736746
|
A replay of the call will be available through May 21, 2017 by using the dial-in numbers and
conference ID below:
International:
|
+61290034211
|
Mainland
China:
|
4006322162
|
Hong
Kong:
|
+85230512780
|
United
States:
|
+16462543697
|
Conference
ID:
|
19736746
|
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/(loss) attributable to
Phoenix New Media Limited, non-GAAP net profit margin and non-GAAP
net income/(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/(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/(loss) attributable to Phoenix New Media Limited is net
income/(loss) attributable to Phoenix New Media Limited excluding
share-based compensation and gain/(loss) from equity investments,
including impairments. Non-GAAP net profit margin is non-GAAP net
income/(loss) attributable to Phoenix New Media Limited divided by
total revenues. Non-GAAP net income/(loss) per diluted ADS is
non-GAAP net income/(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 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/(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
RMB6.8832 to US$1.00, the noon buying rate in effect on
March 31, 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
Matthew Zhao
Email: investorrelations@ifeng.com
ICR, Inc.
Vera Tang
Tel: +1 (646) 277-1215
Email: investorrelations@ifeng.com
Phoenix New Media
Limited
|
Condensed
Consolidated Balance Sheets
|
(Amounts in
thousands)
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
2016
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
US$
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
202,694
|
|
569,750
|
|
82,774
|
Term deposits and
short term investments
|
781,298
|
|
236,178
|
|
34,312
|
Restricted
cash
|
354,602
|
|
566,860
|
|
82,354
|
Accounts receivable,
net
|
405,033
|
|
337,882
|
|
49,088
|
Amounts due from
related parties
|
156,260
|
|
241,525
|
|
35,089
|
Prepayment and other
current assets
|
64,069
|
|
63,892
|
|
9,283
|
Convertible loans due
from a related party
|
104,429
|
|
104,972
|
|
15,250
|
Total current
assets
|
2,068,385
|
|
2,121,059
|
|
308,150
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
72,087
|
|
64,416
|
|
9,358
|
Intangible assets,
net
|
9,475
|
|
9,318
|
|
1,354
|
Available-for-sale
investments
|
939,432
|
|
943,218
|
|
137,032
|
Equity investments,
net
|
8,809
|
|
8,145
|
|
1,183
|
Deferred tax
assets**
|
54,307
|
|
57,996
|
|
8,426
|
Other non-current
assets
|
16,047
|
|
15,530
|
|
2,256
|
Total non-current
assets
|
1,100,157
|
|
1,098,623
|
|
159,609
|
Total
assets
|
3,168,542
|
|
3,219,682
|
|
467,759
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term bank
loans
|
358,602
|
|
494,612
|
|
71,858
|
Accounts
payable
|
260,902
|
|
239,082
|
|
34,733
|
Amounts due to related
parties
|
18,720
|
|
19,162
|
|
2,784
|
Advances from
customers
|
27,825
|
|
46,603
|
|
6,771
|
Taxes
payable
|
75,652
|
|
56,676
|
|
8,234
|
Salary and welfare
payable
|
130,329
|
|
100,495
|
|
14,600
|
Accrued expenses and
other current liabilities
|
111,049
|
|
96,247
|
|
13,982
|
Total current
liabilities
|
983,079
|
|
1,052,877
|
|
152,962
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
1,312
|
|
1,312
|
|
191
|
Long-term
liabilities
|
21,723
|
|
22,623
|
|
3,287
|
Total non-current
liabilities
|
23,035
|
|
23,935
|
|
3,478
|
Total
liabilities
|
1,006,114
|
|
1,076,812
|
|
156,440
|
Shareholders'
equity:
|
|
|
|
|
|
Phoenix New Media
Limited shareholders' equity:
|
|
|
|
|
|
Class A ordinary
shares
|
16,843
|
|
16,845
|
|
2,447
|
Class B ordinary
shares
|
22,053
|
|
22,053
|
|
3,204
|
Additional paid-in
capital
|
1,555,511
|
|
1,563,776
|
|
227,187
|
Statutory
reserves
|
77,946
|
|
77,946
|
|
11,324
|
Retained
earnings
|
195,069
|
|
162,895
|
|
23,666
|
Accumulated other
comprehensive income
|
298,346
|
|
303,470
|
|
44,089
|
Total Phoenix New
Media Limited shareholders'
equity
|
2,165,768
|
|
2,146,985
|
|
311,917
|
Noncontrolling
interests
|
(3,340)
|
|
(4,115)
|
|
(598)
|
Total
shareholders' equity
|
2,162,428
|
|
2,142,870
|
|
311,319
|
Total liabilities
and shareholders' equity
|
3,168,542
|
|
3,219,682
|
|
467,759
|
|
* 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
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
2016
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Revenues:
|
|
|
|
|
|
|
|
Net
advertising revenues
|
271,383
|
|
353,158
|
|
241,084
|
|
35,025
|
Paid services
revenues
|
51,557
|
|
58,724
|
|
53,395
|
|
7,757
|
Total
revenues
|
322,940
|
|
411,882
|
|
294,479
|
|
42,782
|
Cost of
revenues
|
(158,168)
|
|
(205,204)
|
|
(162,489)
|
|
(23,607)
|
Gross
profit
|
164,772
|
|
206,678
|
|
131,990
|
|
19,175
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales and
marketing expenses
|
(75,558)
|
|
(102,386)
|
|
(95,462)
|
|
(13,869)
|
General and
administrative expenses
|
(45,043)
|
|
(41,150)
|
|
(31,951)
|
|
(4,642)
|
Technology and
product development expenses
|
(40,358)
|
|
(41,692)
|
|
(44,628)
|
|
(6,484)
|
Total operating
expenses
|
(160,959)
|
|
(185,228)
|
|
(172,041)
|
|
(24,995)
|
Income/(loss) from
operations
|
3,813
|
|
21,450
|
|
(40,051)
|
|
(5,820)
|
Other
income/(loss):
|
|
|
|
|
|
|
|
Interest
income
|
8,127
|
|
10,785
|
|
12,658
|
|
1,839
|
Interest
expense
|
(774)
|
|
(3,778)
|
|
(6,349)
|
|
(922)
|
Foreign
currency exchange (loss)/gain
|
(1,864)
|
|
8,486
|
|
(2,311)
|
|
(336)
|
Gain/(loss)
from equity investments, including impairments
|
1,007
|
|
(29)
|
|
(664)
|
|
(96)
|
Others,
net
|
4,206
|
|
11,606
|
|
1,427
|
|
207
|
Income/(loss)
before tax
|
14,515
|
|
48,520
|
|
(35,290)
|
|
(5,128)
|
Income tax
(expense)/benefit
|
(3,399)
|
|
(9,253)
|
|
2,341
|
|
340
|
Net
income/(loss)
|
11,116
|
|
39,267
|
|
(32,949)
|
|
(4,788)
|
Net loss
attributable to noncontrolling interests
|
502
|
|
512
|
|
775
|
|
113
|
Net income/(loss)
attributable to Phoenix New Media
Limited
|
11,618
|
|
39,779
|
|
(32,174)
|
|
(4,675)
|
Net
income/(loss)
|
11,116
|
|
39,267
|
|
(32,949)
|
|
(4,788)
|
Other
comprehensive income, net of tax: fair value remeasurement for
available-for-sale investments
|
5,314
|
|
270,303
|
|
8,891
|
|
1,292
|
Other
comprehensive (loss)/income, net of tax: foreign currency
translation adjustment
|
(2,068)
|
|
15,815
|
|
(3,767)
|
|
(547)
|
Comprehensive
income/(loss)
|
14,362
|
|
325,385
|
|
(27,825)
|
|
(4,043)
|
Comprehensive
loss attributable to noncontrolling interests
|
502
|
|
512
|
|
775
|
|
113
|
Comprehensive
income/(loss) attributable to Phoenix
New Media Limited
|
14,864
|
|
325,897
|
|
(27,050)
|
|
(3,930)
|
Net income/(loss)
attributable to Phoenix New Media Limited
|
11,618
|
|
39,779
|
|
(32,174)
|
|
(4,675)
|
Net income/(loss) per
Class A and Class B ordinary share:
|
|
|
|
|
|
|
|
Basic
|
0.02
|
|
0.07
|
|
(0.06)
|
|
(0.01)
|
Diluted
|
0.02
|
|
0.07
|
|
(0.06)
|
|
(0.01)
|
Net income/(loss) per
ADS (1 ADS represents 8 Class A ordinary shares):
|
|
|
|
|
|
|
|
Basic
|
0.16
|
|
0.55
|
|
(0.45)
|
|
(0.07)
|
Diluted
|
0.16
|
|
0.55
|
|
(0.45)
|
|
(0.07)
|
Weighted average
number of Class A and Class B ordinary shares used in computing net
income/(loss) per share:
|
|
|
|
|
|
|
|
Basic
|
572,996,971
|
|
574,115,251
|
|
573,935,277
|
|
573,935,277
|
Diluted
|
578,081,026
|
|
577,290,719
|
|
573,935,277
|
|
573,935,277
|
Phoenix New Media
Limited
|
Condensed Segments
Information
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
2016
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Net
advertising services
|
271,383
|
|
353,158
|
|
241,084
|
|
35,025
|
Paid
services
|
51,557
|
|
58,724
|
|
53,395
|
|
7,757
|
Total
revenues
|
322,940
|
|
411,882
|
|
294,479
|
|
42,782
|
Cost of
revenues
|
|
|
|
|
|
|
|
Net
advertising services
|
126,032
|
|
174,005
|
|
131,125
|
|
19,050
|
Paid
services
|
32,136
|
|
31,199
|
|
31,364
|
|
4,557
|
Total cost of
revenues
|
158,168
|
|
205,204
|
|
162,489
|
|
23,607
|
Gross
profit
|
|
|
|
|
|
|
|
Net
advertising services
|
145,351
|
|
179,153
|
|
109,959
|
|
15,975
|
Paid
services
|
19,421
|
|
27,525
|
|
22,031
|
|
3,200
|
Total gross
profit
|
164,772
|
|
206,678
|
|
131,990
|
|
19,175
|
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
March 31, 2016
|
|
Three Months Ended
December 31, 2016
|
|
Three Months Ended
March 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
|
164,772
|
|
851
|
(1)
|
165,623
|
|
206,678
|
|
(949)
|
(1)
|
205,729
|
|
131,990
|
|
1,623
|
(1)
|
133,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
51.0%
|
|
|
|
51.3%
|
|
50.2%
|
|
|
|
49.9%
|
|
44.8%
|
|
|
|
45.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss)
from
operations
|
3,813
|
|
4,081
|
(1)
|
7,894
|
|
21,450
|
|
1,542
|
(1)
|
22,992
|
|
(40,051)
|
|
8,266
|
(1)
|
(31,785)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
margin
|
1.2%
|
|
|
|
2.4%
|
|
5.2%
|
|
|
|
5.6%
|
|
-13.6%
|
|
|
|
-10.8%
|
|
|
|
4,081
|
(1)
|
|
|
|
|
1,542
|
(1)
|
|
|
|
|
8,266
|
(1)
|
|
|
|
|
(1,007)
|
(2)
|
|
|
|
|
29
|
(2)
|
|
|
|
|
664
|
(2)
|
|
Net income/(loss)
attributable to Phoenix New Media Limited
|
11,618
|
|
3,074
|
|
14,692
|
|
39,779
|
|
1,571
|
|
41,350
|
|
(32,174)
|
|
8,930
|
|
(23,244)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit
margin
|
3.6%
|
|
|
|
4.5%
|
|
9.7%
|
|
|
|
10.0%
|
|
-10.9%
|
|
|
|
-7.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) per
ADS—diluted
|
0.16
|
|
|
|
0.20
|
|
0.55
|
|
|
|
0.57
|
|
(0.45)
|
|
|
|
(0.32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ADSs used in computing diluted net income/(loss) per
ADS
|
72,260,128
|
|
|
|
72,260,128
|
|
72,161,340
|
|
|
|
72,161,340
|
|
71,741,910
|
|
|
|
71,741,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation
|
|
|
|
|
|
|
|
|
|
(2) Gain/(loss) from
equity investments, including impairments
|
|
|
|
|
|
|
|
|
|
Details of cost of
revenues are as follows:
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
2016
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
(Amounts in
thousands)
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Revenue sharing
fees
|
18,854
|
|
17,340
|
|
17,320
|
|
2,516
|
Content and
operational costs
|
95,450
|
|
138,635
|
|
106,316
|
|
15,446
|
Bandwidth
costs
|
17,346
|
|
15,160
|
|
14,528
|
|
2,111
|
Sales taxes and
surcharges
|
26,518
|
|
34,069
|
|
24,325
|
|
3,534
|
Total cost of
revenues
|
158,168
|
|
205,204
|
|
162,489
|
|
23,607
|
1 The Company has accounted for its investments in
Yidian as available-for-sale investments.
2 Prior to 2016, the Company's paid services revenues
mainly comprised of the 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". Accordingly, the revenues from digital
entertainment and the revenues from games and others for the first
quarter of 2016 have been reclassified.
3 Digital entertainment includes MVAS and digital
reading. MVAS includes mobile newspaper services, mobile video
services, mobile game services, and wireless value-added services,
or WVAS.
4 Games and others include web-based and mobile games,
and other online and mobile paid services through the Company's own
platforms.
5 "Others, net" primarily consists of government
subsidies.
6 "ADS" means American Depositary Share of the Company.
Each ADS represents eight Class A ordinary shares of the
Company.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-first-quarter-2017-unaudited-financial-results-300457221.html
SOURCE Phoenix New Media Limited