BEIJING, Aug. 15, 2017 /PRNewswire/ -- Phoenix New Media
Limited (NYSE: FENG) ("Phoenix New Media", "ifeng" or the
"Company"), a leading new media company in China, today announced its unaudited financial
results for the second quarter ended June
30, 2017.
"We are pleased to announce better than expected financial and
operating performances during the second quarter of 2017," stated
Mr. Shuang Liu, CEO of Phoenix New
Media. "Our mobile advertising revenues increased by 66%
year-over-year in the past quarter. We are encouraged to see our
mobile strategy continued to achieve great results in both ifeng
news application and Yidian Zixun ("Yidian"[1], a
strategic investment of ifeng) in terms of user acquisition,
viewership improvement, content enrichment and product offerings,
as well as strategic cooperation. In order to stay ahead of the
competition, we remain committed to expanding our user base and
market share, and expect to continue investing in traffic
acquisition. We will remain prudent in our traffic acquisition
spending and have proper mechanisms in place to ensure effective
return on investment, or ROI. Meanwhile, we will continue to
leverage our core media DNA, advanced A.I. technology and
differentiated content offerings to capitalize on various growth
opportunities. Looking ahead, we believe we have the right strategy
and team in place to maintain our leadership position in the highly
competitive market and generate value for our shareholders."
Mr. Ya Li, co-president of Phoenix New Media, further stated,
"By leveraging our strong content production capability and
expertise in native marketing solutions, we acquired about 20
renowned brand advertisers during the second quarter at some highly
visible events and projects, including the Belt and Road Forum,
Davos World Economic Forum and the BRICs Forum. Meanwhile, we
officially launched a new version of performance-based advertising
platform, Fengyu, in the second quarter. Driven by this powerful
new platform, our performance-based advertising experienced a
robust 104% year-over-year growth in the second quarter. On the
Yidian side, we understand that Yidian's user base continued to
grow rapidly in the second quarter. Currently Yidian is the No. 1
content provider on OPPO's branded handsets in terms of user time
spent. In addition, on both Xiaomi and OPPO's mobile handsets,
Yidian will further strengthen its brand recognition through
integrated campaigns cooperated with the two parties."
[1] The
Company has accounted for its investments in Yidian as
available-for-sale investments.
|
Second Quarter 2017 Financial Results
REVENUES
Total revenues for the second quarter of 2017 increased by 12.3%
to RMB393.3 million (US$58.0 million) from RMB350.1 million in the second quarter of
2016.
Net advertising revenues (net of advertising agency service
fees) for the second quarter of 2017 increased by 14.0% to
RMB338.7 million (US$50.0 million) from RMB297.2 million in the second quarter of 2016,
which was primarily attributable to a 66.0% increase in mobile
advertising revenues that was partially offset by a 21.2% decrease
in PC advertising revenues.
Paid services revenues[2] for the second quarter of
2017 increased by 3.2% to RMB54.5
million (US$8.0 million) from
RMB52.8 million in the second quarter
of 2016. Revenues from digital entertainment[3] for the
second quarter of 2017 increased by 13.6% to RMB45.6 million (US$6.7
million) from RMB40.1 million
in the second quarter of 2016, primarily attributable to a 62.2%
increase in digital reading revenues to RMB14.9 million (US$2.2
million) in the second quarter of 2017 from RMB9.2 million in the second quarter of 2016. The
increase in digital reading revenues mainly resulted
from stronger demand and the Company's strategic expansion
efforts in digital reading. Revenues from games and
others[4] for the second quarter of 2017 decreased by
29.4% to RMB9.0 million (US$1.3 million) from RMB12.7 million in the second quarter of 2016,
which was primarily attributable to a decrease in revenues
generated from web-based games operated on the Company's own
platform.
[2] Prior
to 2016, the Company's paid services revenues comprised mainly of
revenues generated from MVAS and games and others. Digital reading
was previously classified under "games and others." In order to
align with the Company's overall strategies, digital reading was
re-classified from "games and others" and digital reading together
with MVAS was determined as "digital entertainment" starting from
the financial statements as of and for the year ended December 31,
2016. Accordingly, the revenues from digital entertainment and the
revenues from games and others for the first two quarters 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.
|
COST OF REVENUES
Cost of revenues for the second quarter of 2017 decreased by
7.0% to RMB167.8 million
(US$24.8 million) from RMB180.5 million in the second quarter of 2016,
primarily attributable to a decrease in content and operational
cost and revenue sharing fees. Content and operational costs for
the second quarter of 2017 decreased to RMB106.0 million (US$15.6
million) from RMB117.2 million
in the second quarter of 2016, primarily attributable to a decrease
in staff cost and advertisement-related content production cost.
Revenue sharing fees to telecom operators and channel partners for
the second quarter of 2017 decreased to RMB15.1 million (US$2.2
million) from RMB19.3 million
in the second quarter of 2016, primarily attributable to a decrease
in the sales of MVAS products. Bandwidth costs for the second
quarter of 2017 decreased to RMB13.6
million (US$2.0 million) from
RMB15.3 million in the second quarter
of 2016. Sales taxes and surcharges for the second quarter of 2017
increased to RMB33.2 million
(US$4.9 million) from RMB28.8 million in the second quarter of 2016.
Share-based compensation included in cost of revenues was
RMB1.2 million (US$0.2 million) in the second quarter of 2017, as
compared to RMB0.8 million in the
second 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 second quarter of 2017 increased by 32.9%
to RMB225.4 million (US$33.3 million) from RMB169.6 million in the second quarter of 2016.
Gross margin for the second quarter of 2017 increased to 57.3% from
48.4% in the second quarter of 2016. The increase in gross margin
was primarily attributable to an increase in revenues as well as a
decrease in content and operational cost and revenue sharing
fees.
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 second quarter of 2017, which
excluded share-based compensation, increased to 57.6% from 48.7% in
the second quarter of 2016.
OPERATING EXPENSES AND INCOME/(LOSS) FROM
OPERATIONS
Total operating expenses for the second quarter of 2017
increased by 7.4% to RMB200.4 million
(US$29.6 million) from RMB186.7 million in the second quarter of 2016,
primarily attributable to an increase in mobile traffic acquisition
expenses, which was partially offset by a decrease in bad debt
provision. Share-based compensation included in operating expenses
was RMB4.2 million (US$0.6 million) in the second quarter of 2017, as
compared to RMB3.6 million in the
second quarter of 2016.
Income from operations for the second quarter of 2017 was
RMB25.0 million (US$3.7 million), as compared to a loss from
operations of RMB17.1 million in the
second quarter of 2016. Operating margin for the second quarter of
2017 was 6.4%, as compared to negative 4.9% in the second quarter
of 2016, which was primarily attributable to the increase in gross
profit and partially offset by the increase in mobile traffic
acquisition expenses.
Non-GAAP income from operations for the second quarter of 2017,
which excluded share-based compensation, was RMB30.5 million (US$4.5
million), as compared to non-GAAP loss from operations of
RMB12.7 million in the second quarter
of 2016. Non-GAAP operating margin for the second quarter of 2017,
which excluded share-based compensation, was 7.7%, as compared to
negative 3.6% in the second 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[5].
Total other income for the second quarter of 2017 was RMB3.4 million (US$0.5
million), as compared to RMB12.4
million in the second quarter of 2016. Interest income for
the second quarter of 2017 was RMB13.5
million (US$2.0 million), as
compared to RMB8.3 million in the
second quarter of 2016. Interest expense for the second quarter of
2017 was RMB6.4 million (US$0.9 million), as compared to RMB1.0 million in the second quarter of 2016.
Foreign currency exchange loss for the second quarter of 2017 was
RMB7.9 million (US$1.2 million), as compared to foreign currency
exchange gain of RMB2.4 million in
the second quarter of 2016. Gain from equity investments for the
second quarter of 2017, including impairments, was RMB1.1 million (US$0.2
million), as compared to loss from equity investments of
RMB1.5 million in the second quarter
of 2016. Others, net, for the second quarter of 2017 was
RMB3.1 million (US$0.5 million), as compared to RMB4.2 million in the second quarter of 2016.
[5]
"Others, net" primarily consists of government
subsidies.
|
NET
INCOME/(LOSS) ATTRIBUTABLE TO
PHOENIX NEW MEDIA
LIMITED
Net income attributable to Phoenix New Media Limited for the
second quarter of 2017 was RMB24.9
million (US$3.7 million), as
compared to net loss attributable to Phoenix New Media Limited of
RMB2.5 million in the second quarter
of 2016. Net margin for the second quarter of 2017 was 6.3%, as
compared to negative 0.7% in the second quarter of 2016. Net income
per diluted ADS[6] in the second quarter of 2017 was
RMB0.35 (US$0.05), as compared to net loss per diluted
ADS of RMB0.03 in the second quarter
of 2016.
Non-GAAP net income attributable to Phoenix New Media Limited
for the second quarter of 2017, which excluded share-based
compensation and gain/(loss) from equity investments, including
impairments, increased by 740.0% to RMB29.3
million (US$4.3 million) from
RMB3.5 million in the second quarter
of 2016. Non-GAAP net margin for the second quarter of 2017
increased to 7.4% from 1.0% in the second quarter of 2016. Non-GAAP
net income per diluted ADS in the second quarter of 2017 increased
by 740.6% to RMB0.41 (US$0.06) from RMB0.05 in the second quarter of 2016.
For the second quarter of 2017, the Company's weighted average
number of ADSs used in the computation of diluted net income per
ADS was 72,101,949. As of June 30,
2017, the Company had a total of 572,269,650 ordinary shares
outstanding, or the equivalent of 71,533,706 ADSs.
[6] "ADS"
means American Depositary Share of the Company. Each ADS represents
eight Class A ordinary shares of the Company.
|
OTHER COMPREHENSIVE INCOME
In June 2017, Particle Inc., an
investee of the Company, issued additional equity securities to
unrelated third-party investors for cash consideration. As the
Company accounts for its investments in Particle Inc. as
available-for-sale investments, the Company reassessed the fair
value of its investments in Particle Inc. after the above-mentioned
transaction and determined that the fair value of its investments
in Particle had increased, and therefore in accordance with generally
accepted accounting principles, the Company recorded
the fair value change in other comprehensive income, net of tax, of
RMB239.5 million (US$35.3 million) in the second quarter of 2017
relating to such fair value remeasurement. This led to a
significant increase in the Company's other comprehensive income,
net of tax, relating to fair value remeasurement for
available-for-sale investments and contributed to the significant
increase in comprehensive income attributable to Phoenix New Media
Limited in the second quarter of 2017 as compared to the second
quarter of 2016.
CERTAIN BALANCE SHEET ITEMS
As of June 30, 2017, the Company's
cash and cash equivalents, term deposits and short term investments
and restricted cash were RMB1.19
billion (US$175.9 million).
Restricted cash represents deposits placed as security for banking
facilities granted to the Company, which are restricted in their
withdrawal or usage.
Business Outlook
For the third quarter of 2017, the Company expects its total
revenues to be between RMB396 million and
RMB411 million. Net advertising revenues are expected to be
between RMB345 million and RMB355
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 August 15, 2017 (August
16, 2017 at 9:00 a.m.
Beijing/Hong Kong time) to discuss its second 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:
|
68225619
|
A replay of the call will be available through August 22, 2017 by using the dial-in numbers and
conference ID below:
International:
|
+61290034211
|
Mainland
China:
|
4006322162
|
Hong
Kong:
|
+85230512780
|
United
States:
|
+16462543697
|
Conference
ID:
|
68225619
|
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 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 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 RMB6.7793 to US$1.00, the noon buying rate in effect on
June 30, 2017 in the H.10 statistical
release of the Federal Reserve Board. The Company makes no
representation that the RMB or USD amounts referred could be
converted into USD or RMB, as the case may be, at any particular
rate or at all. For analytical presentation, all percentages are
calculated using the numbers presented in the financial statements
contained in this earnings release.
About Phoenix New Media Limited
Phoenix New Media Limited (NYSE: FENG) is a leading new media
company providing premium content on an integrated Internet
platform, including PC and mobile, in China. Having originated from a leading global
Chinese language TV network based in Hong
Kong, Phoenix TV, the Company enables consumers to access
professional news and other quality information and share
user-generated content on the Internet through their PCs and mobile
devices. Phoenix New Media's platform includes its PC channel,
consisting of ifeng.com website, which comprises interest-based
verticals and interactive services; its mobile channel, consisting
of mobile news applications, mobile video application, digital
reading application, fashion application and mobile Internet
website; and its operations with the telecom operators that
provides mobile value-added services.
Safe Harbor Statement
This announcement contains forward−looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward−looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as Phoenix New Media's strategic and
operational plans, contain forward−looking statements. Phoenix New
Media may also make written or oral forward−looking statements in
its periodic reports to the U.S. Securities and Exchange Commission
("SEC") on Forms 20−F and 6−K, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about Phoenix New Media's beliefs and expectations, are
forward−looking statements. Forward−looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward−looking statement, including but not limited to the
following: the Company's goals and strategies; the Company's future
business development, financial condition and results of
operations; the expected growth of online and mobile advertising,
online video and mobile paid services markets in China; the Company's reliance on online and
mobile advertising and MVAS for a majority of its total revenues;
the Company's expectations regarding demand for and market
acceptance of its services; the Company's expectations regarding
maintaining and strengthening its relationships with advertisers,
partners and customers; fluctuations in the Company's quarterly
operating results; the Company's plans to enhance its user
experience, infrastructure and services offerings; the Company's
reliance on mobile operators in China to provide most of its MVAS; changes by
mobile operators in China to their
policies for MVAS; competition in its industry in China; and relevant government policies and
regulations relating to the Company. Further information regarding
these and other risks is included in the Company's filings with the
SEC, including its registration statement on Form F−1, as amended,
and its annual reports on Form 20−F. All information provided in
this press release and in the attachments is as of the date of this
press release, and Phoenix New Media does not undertake any
obligation to update any forward−looking statement, except as
required under applicable law.
For investor and media inquiries please contact:
Phoenix New Media Limited
Matthew Zhao
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,
|
|
June
30,
|
|
June
30,
|
2016
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
US$
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
202,694
|
|
227,460
|
|
33,552
|
Term deposits and
short term investments
|
781,298
|
|
499,236
|
|
73,641
|
Restricted
cash
|
354,602
|
|
465,707
|
|
68,695
|
Accounts receivable,
net
|
405,033
|
|
380,071
|
|
56,063
|
Amounts due from
related parties
|
156,260
|
|
267,534
|
|
39,464
|
Prepayment and other
current assets
|
64,069
|
|
58,619
|
|
8,647
|
Convertible loans due
from a related party
|
104,429
|
|
104,250
|
|
15,378
|
Total current
assets
|
2,068,385
|
|
2,002,877
|
|
295,440
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
72,087
|
|
73,870
|
|
10,896
|
Intangible assets,
net
|
9,475
|
|
8,376
|
|
1,236
|
Available-for-sale
investments
|
939,432
|
|
1,182,730
|
|
174,462
|
Equity investments,
net
|
8,809
|
|
9,272
|
|
1,368
|
Deferred tax
assets**
|
54,307
|
|
59,704
|
|
8,807
|
Other non-current
assets
|
16,047
|
|
13,267
|
|
1,957
|
Total non-current
assets
|
1,100,157
|
|
1,347,219
|
|
198,726
|
Total
assets
|
3,168,542
|
|
3,350,096
|
|
494,166
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term bank
loans
|
358,602
|
|
357,954
|
|
52,801
|
Accounts
payable
|
260,902
|
|
218,318
|
|
32,204
|
Amounts due to related
parties
|
18,720
|
|
20,164
|
|
2,974
|
Advances from
customers
|
27,825
|
|
49,378
|
|
7,284
|
Taxes
payable
|
75,652
|
|
65,150
|
|
9,610
|
Salary and welfare
payable
|
130,329
|
|
103,508
|
|
15,268
|
Accrued expenses and
other current liabilities
|
111,049
|
|
95,852
|
|
14,139
|
Total current
liabilities
|
983,079
|
|
910,324
|
|
134,280
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
1,312
|
|
1,312
|
|
194
|
Long-term
liabilities
|
21,723
|
|
21,890
|
|
3,229
|
Total non-current
liabilities
|
23,035
|
|
23,202
|
|
3,423
|
Total
liabilities
|
1,006,114
|
|
933,526
|
|
137,703
|
Shareholders'
equity:
|
|
|
|
|
|
Phoenix New Media
Limited shareholders' equity:
|
|
|
|
|
|
Class A ordinary
shares
|
16,843
|
|
16,846
|
|
2,485
|
Class B ordinary
shares
|
22,053
|
|
22,053
|
|
3,253
|
Additional paid-in
capital
|
1,555,511
|
|
1,569,222
|
|
231,473
|
Statutory
reserves
|
77,946
|
|
77,946
|
|
11,498
|
Retained
earnings
|
195,069
|
|
187,826
|
|
27,706
|
Accumulated other
comprehensive income
|
298,346
|
|
547,572
|
|
80,770
|
Total Phoenix New
Media Limited shareholders' equity
|
2,165,768
|
|
2,421,465
|
|
357,185
|
Noncontrolling
interests
|
(3,340)
|
|
(4,895)
|
|
(722)
|
Total
shareholders' equity
|
2,162,428
|
|
2,416,570
|
|
356,463
|
Total liabilities
and shareholders' equity
|
3,168,542
|
|
3,350,096
|
|
494,166
|
|
* 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
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising revenues
|
297,230
|
|
241,084
|
|
338,725
|
|
49,965
|
|
568,613
|
|
579,809
|
|
85,526
|
Paid service
revenues
|
52,833
|
|
53,395
|
|
54,541
|
|
8,045
|
|
104,390
|
|
107,936
|
|
15,921
|
Total
revenues
|
350,063
|
|
294,479
|
|
393,266
|
|
58,010
|
|
673,003
|
|
687,745
|
|
101,447
|
Cost of
revenues
|
(180,508)
|
|
(162,489)
|
|
(167,844)
|
|
(24,758)
|
|
(338,676)
|
|
(330,333)
|
|
(48,727)
|
Gross
profit
|
169,555
|
|
131,990
|
|
225,422
|
|
33,252
|
|
334,327
|
|
357,412
|
|
52,720
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses
|
(87,017)
|
|
(95,462)
|
|
(118,769)
|
|
(17,519)
|
|
(162,575)
|
|
(214,231)
|
|
(31,601)
|
General and
administrative expenses
|
(57,587)
|
|
(31,951)
|
|
(35,865)
|
|
(5,290)
|
|
(102,630)
|
|
(67,816)
|
|
(10,003)
|
Technology and
product development
expenses
|
(42,074)
|
|
(44,628)
|
|
(45,791)
|
|
(6,755)
|
|
(82,432)
|
|
(90,419)
|
|
(13,338)
|
Total operating
expenses
|
(186,678)
|
|
(172,041)
|
|
(200,425)
|
|
(29,564)
|
|
(347,637)
|
|
(372,466)
|
|
(54,942)
|
(Loss)/income from
operations
|
(17,123)
|
|
(40,051)
|
|
24,997
|
|
3,688
|
|
(13,310)
|
|
(15,054)
|
|
(2,222)
|
Other
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
8,257
|
|
12,658
|
|
13,493
|
|
1,990
|
|
16,384
|
|
26,151
|
|
3,857
|
Interest
expense
|
(954)
|
|
(6,349)
|
|
(6,426)
|
|
(948)
|
|
(1,728)
|
|
(12,775)
|
|
(1,884)
|
Foreign
currency exchange gain/(loss)
|
2,411
|
|
(2,311)
|
|
(7,890)
|
|
(1,164)
|
|
547
|
|
(10,201)
|
|
(1,505)
|
(Loss)/gain
from equity investments,
including
impairments
|
(1,512)
|
|
(664)
|
|
1,127
|
|
166
|
|
(505)
|
|
463
|
|
68
|
Others,
net
|
4,220
|
|
1,427
|
|
3,066
|
|
452
|
|
8,426
|
|
4,493
|
|
663
|
(Loss)/income
before tax
|
(4,701)
|
|
(35,290)
|
|
28,367
|
|
4,184
|
|
9,814
|
|
(6,923)
|
|
(1,023)
|
Income tax
benefit /(expense)
|
1,442
|
|
2,341
|
|
(4,215)
|
|
(622)
|
|
(1,957)
|
|
(1,874)
|
|
(276)
|
Net
(loss)/income
|
(3,259)
|
|
(32,949)
|
|
24,152
|
|
3,562
|
|
7,857
|
|
(8,797)
|
|
(1,299)
|
Net loss
attributable to noncontrolling
interests
|
778
|
|
775
|
|
779
|
|
115
|
|
1,280
|
|
1,554
|
|
229
|
Net (loss)/income
attributable to Phoenix
New Media
Limited
|
(2,481)
|
|
(32,174)
|
|
24,931
|
|
3,677
|
|
9,137
|
|
(7,243)
|
|
(1,070)
|
Net
(loss)/income
|
(3,259)
|
|
(32,949)
|
|
24,152
|
|
3,562
|
|
7,857
|
|
(8,797)
|
|
(1,299)
|
Other
comprehensive income, net of tax:
fair value remeasurement
for
available-for-sale
investments
|
11,329
|
|
8,891
|
|
256,588
|
|
37,849
|
|
16,643
|
|
265,479
|
|
39,160
|
Other
comprehensive income/(loss), net
of tax: foreign currency
translation
adjustment
|
11,002
|
|
(3,767)
|
|
(12,486)
|
|
(1,842)
|
|
8,934
|
|
(16,253)
|
|
(2,397)
|
Comprehensive
income/(loss)
|
19,072
|
|
(27,825)
|
|
268,254
|
|
39,569
|
|
33,434
|
|
240,429
|
|
35,464
|
Comprehensive
loss attributable to
noncontrolling
interests
|
778
|
|
775
|
|
779
|
|
115
|
|
1,280
|
|
1,554
|
|
229
|
Comprehensive
income/(loss) attributable
to Phoenix New Media
Limited
|
19,850
|
|
(27,050)
|
|
269,033
|
|
39,684
|
|
34,714
|
|
241,983
|
|
35,693
|
Net (loss)/income
attributable to Phoenix
New Media
Limited
|
(2,481)
|
|
(32,174)
|
|
24,931
|
|
3,677
|
|
9,137
|
|
(7,243)
|
|
(1,070)
|
Net
(loss)/income per Class A and Class B
ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
(0.00)
|
|
(0.06)
|
|
0.04
|
|
0.01
|
|
0.02
|
|
(0.01)
|
|
0.00
|
Diluted
|
(0.00)
|
|
(0.06)
|
|
0.04
|
|
0.01
|
|
0.02
|
|
(0.01)
|
|
0.00
|
Net
(loss)/income per ADS (1 ADS
represents 8 Class A ordinary shares):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
(0.03)
|
|
(0.45)
|
|
0.35
|
|
0.05
|
|
0.13
|
|
(0.10)
|
|
(0.01)
|
Diluted
|
(0.03)
|
|
(0.45)
|
|
0.35
|
|
0.05
|
|
0.13
|
|
(0.10)
|
|
(0.01)
|
Weighted average
number of Class A and
Class B ordinary shares used
in
computing net
(loss)/income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
573,074,298
|
|
573,935,277
|
|
573,948,891
|
|
573,948,891
|
|
573,035,634
|
|
573,943,337
|
|
573,943,337
|
Diluted
|
573,074,298
|
|
573,935,277
|
|
576,815,588
|
|
576,815,588
|
|
577,318,340
|
|
573,943,337
|
|
573,943,337
|
Phoenix New Media
Limited
|
Condensed Segments
Information
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
297,230
|
|
241,084
|
|
338,725
|
|
49,965
|
|
568,613
|
|
579,809
|
|
85,526
|
Paid
service
|
52,833
|
|
53,395
|
|
54,541
|
|
8,045
|
|
104,390
|
|
107,936
|
|
15,921
|
Total
revenues
|
350,063
|
|
294,479
|
|
393,266
|
|
58,010
|
|
673,003
|
|
687,745
|
|
101,447
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
146,233
|
|
131,125
|
|
141,459
|
|
20,866
|
|
272,265
|
|
272,584
|
|
40,209
|
Paid
service
|
34,275
|
|
31,364
|
|
26,385
|
|
3,892
|
|
66,411
|
|
57,749
|
|
8,518
|
Total cost of
revenues
|
180,508
|
|
162,489
|
|
167,844
|
|
24,758
|
|
338,676
|
|
330,333
|
|
48,727
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
150,997
|
|
109,959
|
|
197,266
|
|
29,099
|
|
296,348
|
|
307,225
|
|
45,317
|
Paid
service
|
18,558
|
|
22,031
|
|
28,156
|
|
4,153
|
|
37,979
|
|
50,187
|
|
7,403
|
Total gross
profit
|
169,555
|
|
131,990
|
|
225,422
|
|
33,252
|
|
334,327
|
|
357,412
|
|
52,720
|
Phoenix New Media
Limited
|
Condensed
Information of Cost of Revenues
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue sharing
fees
|
19,274
|
|
17,320
|
|
15,052
|
|
2,220
|
|
38,128
|
|
32,372
|
|
4,775
|
Content and
operational costs
|
117,190
|
|
106,316
|
|
105,984
|
|
15,633
|
|
212,640
|
|
212,300
|
|
31,315
|
Bandwidth
costs
|
15,291
|
|
14,528
|
|
13,607
|
|
2,007
|
|
32,637
|
|
28,135
|
|
4,150
|
Sales taxes and
surcharges
|
28,753
|
|
24,325
|
|
33,201
|
|
4,898
|
|
55,271
|
|
57,526
|
|
8,487
|
Total cost of
revenues
|
180,508
|
|
162,489
|
|
167,844
|
|
24,758
|
|
338,676
|
|
330,333
|
|
48,727
|
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
June 30, 2016
|
|
Three Months Ended
March 31, 2017
|
|
Three Months Ended
June 30, 2017
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Gross
profit
|
169,555
|
|
845
|
(1)
|
170,400
|
|
131,990
|
|
1,623
|
(1)
|
133,613
|
|
225,422
|
|
1,224
|
(1)
|
226,646
|
Gross
margin
|
48.4%
|
|
|
|
48.7%
|
|
44.8%
|
|
|
|
45.4%
|
|
57.3%
|
|
|
|
57.6%
|
(Loss)/income
from
operations
|
(17,123)
|
|
4,453
|
(1)
|
(12,670)
|
|
(40,051)
|
|
8,266
|
(1)
|
(31,785)
|
|
24,997
|
|
5,460
|
(1)
|
30,457
|
Operating
margin
|
-4.9%
|
|
|
|
-3.6%
|
|
-13.6%
|
|
|
|
-10.8%
|
|
6.4%
|
|
|
|
7.7%
|
|
|
|
4,453
|
(1)
|
|
|
|
|
8,266
|
(1)
|
|
|
|
|
5,460
|
(1)
|
|
|
|
|
1,512
|
(2)
|
|
|
|
|
664
|
(2)
|
|
|
|
|
(1,127)
|
(2)
|
|
Net
(loss)/income
attributable to
Phoenix New
Media Limited
|
(2,481)
|
|
5,965
|
|
3,484
|
|
(32,174)
|
|
8,930
|
|
(23,244)
|
|
24,931
|
|
4,333
|
|
29,264
|
Net margin
|
-0.7%
|
|
|
|
1.0%
|
|
-10.9%
|
|
|
|
-7.9%
|
|
6.3%
|
|
|
|
7.4%
|
Net
(loss)/income per
ADS-diluted
|
(0.03)
|
|
|
|
0.05
|
|
(0.45)
|
|
|
|
(0.32)
|
|
0.35
|
|
|
|
0.41
|
Weighted average
number of ADSs
used in computing
diluted net
(loss)/income per
ADS
|
71,634,287
|
|
|
|
72,161,557
|
|
71,741,910
|
|
|
|
71,741,910
|
|
72,101,949
|
|
|
|
72,101,949
|
|
(1) Share-based
compensation
|
(2) Loss/(gain) from
equity investments, including impairments
|
View original
content:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-second-quarter-2017-unaudited-financial-results-300504503.html
SOURCE Phoenix New Media Limited