BEIJING, Nov. 8, 2016 /PRNewswire/ --
- Live Conference Call to be Held at 8:00
PM U.S. Eastern Time on November 8
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 third quarter ended September 30, 2016.
Third Quarter 2016 Highlights
- Net advertising revenues increased by 3.5% to RMB310.4 million (US$46.6
million) from RMB300.0 million
in the same period last year.
- Paid service revenues were RMB49.6
million (US$7.4 million), as
compared to RMB90.4 million in the
same period last year.
"We are encouraged by the solid results of our ongoing evolution
as one of China's leading new
media platforms and remain focused on strengthening our core
capabilities through providing our users with personalized,
specialized, and high-quality content across our platforms," stated
Mr. Shuang Liu, CEO of Phoenix New
Media. "We remain diligent and agile as the media landscape evolves
in China and are committed to
providing users the highest quality of content across mobile and PC
platforms. As such, we are excited to have the Chinese media
veteran, Mr. Tong Chen, join us as the co-president of ifeng and
the president of Yidian Zixun ("Yidian", a strategic investment of
ifeng). Mr. Chen is a proven leader with significant media and
content development expertise and a deep understanding of the
changes and direction which are taking place in our industry and
the opportunities they present for ifeng. We look forward to
working with him to build upon the Company's strong foundation and
accelerate our success for years to come."
"We are pleased to share the encouraging progress being made on
the Yidian and ifeng platforms," Mr. Ya Li, President of Phoenix
New Media, further commented, "The user growth of Yidian continues
to be encouraging and the total daily active users reached over 40
million in September this year. Further, Yidian's strategic
partnership with OPPO is moving along seamlessly. OPPO started to
pre-install Yidian's app on its new shipments recently. Meanwhile,
both OPPO and Xiaomi began to exclusively embed Yidian's newsfeed
service into their browsers. Additionally, although we continue to
face headwinds associated with the market-wide pressure on PC ad
revenues, we were able to slower the decrease by our innovative
native marketing solution and programmatic buying. We are confident
that by continuing to execute on our strategic initiatives with
both ifeng and Yidian, we will capture new growth opportunities and
enhance our market position to drive value for our users, strategic
partners, and shareholders."
Third Quarter 2016 Financial
Results
REVENUES
Total revenues for the third quarter of 2016 were RMB360.0 million (US$54.0
million), as compared to RMB390.4
million in the third quarter of 2015.
Net advertising revenues (net of advertising agency service
fees) for the third quarter of 2016 increased by 3.5% to
RMB310.4 million (US$46.6 million) from RMB300.0 million in the third quarter of 2015.
The increase was primarily due to the 69.4% year-over-year growth
in mobile advertising revenues and was partially offset by the
22.8% year-over-year decrease in PC advertising revenues.
Paid service revenues for the third quarter of 2016 were
RMB49.6 million (US$7.4 million), as compared to RMB90.4 million in the third quarter of 2015,
primarily due to the 63.7% year-over-year decrease in mobile
value-added services ("MVAS")[1] revenues to
RMB25.8 million (US$3.8 million) from RMB71.1 million in the third quarter of 2015. 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 others[2]
for the third quarter of 2016 increased by 23.5% to RMB23.8 million (US$3.6
million) from RMB19.3 million
in the third quarter of 2015, primarily due to the increased
revenues generated from online digital reading services through the
Company's own platform.
[1] MVAS
includes wireless value-added services, or WVAS, mobile video,
mobile digital reading, mobile games and other paid services
through China's three telecom operators' platforms.
|
[2] Games
and others include web-based games, content sales, and other online
and mobile paid services through the Company's own
platforms.
|
COST OF REVENUES
Cost of revenues for the third quarter of 2016 decreased by
12.8% to RMB182.9 million
(US$27.4 million) from RMB209.8 million in the third quarter of 2015.
The decrease in cost of revenues was primarily due to the decrease
in revenue sharing fees and bandwidth costs. Revenue sharing fees
to telecom operators and channel partners for the third quarter of
2016 decreased to RMB16.6 million
(US$2.5 million) from RMB51.6 million in the third quarter of 2015,
primarily due to the decreased sales of MVAS products. Content and
operational costs for the third quarter of 2016 increased to
RMB119.5 million (US$17.9 million) from RMB107.8 million in the third quarter of 2015,
which was primarily driven by the increase in general operating
cost and advertisement-related content production cost. Bandwidth
costs for the third quarter of 2016 decreased to RMB16.4 million (US$2.5
million) from RMB20.7 million
in the third quarter of 2015. Sales taxes and surcharges for the
third quarter of 2016 slightly increased to RMB30.4 million (US$4.6
million) from RMB29.8 million
in the third quarter of 2015. Share-based compensation included in
cost of revenues was negative RMB5.1
million (US$0.8 million) in
the third quarter of 2016, as compared to RMB4.1 million in the third quarter of 2015. The
decrease was primarily due to an increase of the estimated
forfeiture rate of share-based awards as a result of the decrease
of headcounts.
GROSS PROFIT
Gross profit for the third quarter of 2016 was RMB177.1 million (US$26.6
million), as compared to RMB180.6
million in the third quarter of 2015. Gross margin for the
third quarter of 2016 increased to 49.2% from 46.3% in the third
quarter of 2015, mainly due to the reduction of sales from low
gross margin products in paid services.
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 non-cash or non-operating 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, which excludes share-based compensation,
for the third quarter of 2016 slightly increased to 47.8% from
47.3% in the third quarter of 2015.
OPERATING EXPENSES AND INCOME FROM
OPERATIONS
Total operating expenses for the third quarter of 2016 decreased
by 13.0% to RMB149.9 million
(US$22.5 million) from RMB172.3 million in the third quarter of 2015.
Share-based compensation included in operating expenses decreased
to negative RMB3.1 million
(US$0.5 million) in the third quarter
of 2016 as compared to RMB7.9 million
in the third quarter of 2015. The decrease was primarily due to an
increase of the estimated forfeiture rate of share-based awards as
a result of the decrease of headcounts.
Income from operations for the third quarter of 2016 increased
by 228.0% to RMB27.2 million
(US$4.1 million) from RMB8.3 million in the third quarter of 2015.
Operating margin for the third quarter of 2016 increased to 7.6%
from 2.1% in the third quarter of 2015. The increase in operating
margin was mainly due to the decrease in share-based compensation,
which was partially offset by the increase in mobile traffic
acquisition expenses.
Non-GAAP income from operations for the third quarter of 2016,
which excludes share-based compensation, decreased by 6.4% to
RMB19.0 million (US$2.9 million) from RMB20.3 million in the third quarter of 2015.
Non-GAAP operating margin for the third quarter of 2016, which
excludes share-based compensation, slightly increased to 5.3% from
5.2% in the third quarter of 2015.
OTHER INCOME / (LOSS)
Other income/(loss) reflects interest income, interest expense,
foreign currency exchange gain/loss, loss from equity investments,
including impairments, and others, net[3]. Total other
income for the third quarter of 2016 was RMB6.7 million (US$1.0
million), as compared to RMB16.8
million in the third quarter of 2015. Interest income for
the third quarter of 2016 was RMB7.9
million (US$1.2 million), as
compared to RMB7.0 million in the
third quarter of 2015. Interest expense for the third quarter of
2016 was RMB1.6 million (US$0.2 million), as compared to RMB1.1 million in the third quarter of 2015.
Foreign currency exchange gain for the third quarter of 2016 was
RMB0.6 million (US$0.1 million), as compared to RMB2.7 million in the third quarter of 2015. Loss
from equity investments, including impairments, for the third
quarter of 2016 was RMB1.2 million
(US$0.2 million), as compared to
RMB2.7 million in the third quarter
of 2015.
[3]
"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
third quarter of 2016 increased by 49.5% to RMB31.7 million (US$4.8
million) from RMB21.2 million
in the third quarter of 2015. Net profit margin for the third
quarter of 2016 increased to 8.8% from 5.4% in the third quarter of
2015. Net income per diluted ADS[4] in the third quarter
of 2016 increased by 50.1% to RMB0.44
(US$0.07) from RMB0.29 in the third quarter of 2015.
Non-GAAP net income attributable to Phoenix New Media Limited
for the third quarter of 2016, which excludes share-based
compensation and loss from equity investments, including
impairments, was RMB24.8 million
(US$3.7 million), as compared to
RMB35.9 million in the third quarter
of 2015. Non-GAAP net profit margin for the third quarter of 2016
was 6.9%, as compared to 9.2% in the third quarter of 2015.
Non-GAAP net income per diluted ADS in the third quarter of 2016
was RMB0.34 (US$0.05), as compared to RMB0.50 in the third quarter of 2015.
For the third quarter of 2016, the Company's weighted average
number of ADSs used in the computation of diluted net income per
ADS was 72,179,058. As of September 30,
2016, the Company had a total of 571,877,154 ordinary shares
outstanding, or the equivalent of 71,484,644 ADSs.
[4] "ADS"
means American Depositary Share of the Company. Each ADS represents
eight Class A ordinary shares of the Company.
|
CERTAIN BALANCE SHEET ITEMS
As of September 30, 2016, the
Company's cash and cash equivalents, term deposits and short term
investments and restricted cash were RMB1.16
billion (US$173.8 million).
Restricted cash represents deposits placed as security for banking
facility granted to the company, which are restricted as to their
withdrawal or usage.
As previously reported by the Company, the Company granted
US$20 million of short-term unsecured
loans to Yidian from January to April
2016; and in August 2016,
shareholders of Yidian agreed that the Company may, at its option,
convert all or a portion of the above-mentioned loans into
preferred shares of Yidian at any time prior to December 31, 2016. As a result, the
above-mentioned loans were classified as convertible debts due from
investee company in August 2016.
Option Exchange Program
With the approvals of the board of directors and shareholders of
the Company and Phoenix TV, the Company implemented an option
exchange program from October 21,
2016 to November 1, 2016
whereby the Company's directors, employees and consultants
exchanged options to purchase 21,011,951 Class A ordinary shares of
the Company granted under the Company's 2008 Share Option Plan with
various exercise prices greater than US$0.4823 per share (or US$3.8587 per ADS) for new options granted by the
Company under the same plan with a new exercise price of
US$0.4823 per share and a new vesting
schedule that generally adds 12 months to each original vesting
date, and the new options would vest no sooner than May 1, 2017.
Business Outlook
For the fourth quarter of 2016, the Company expects its total
revenues to be between RMB353 million and
RMB368 million. Net advertising revenues are expected to be
between RMB306 million and RMB316
million. Paid service revenues are expected to be between
RMB47 million and RMB52 million.
These forecasts reflect the Company's current and preliminary view
on the market and operational conditions, which are subject to
change.
Conference Call Information
The Company will hold a conference call at 8:00 p.m. U.S. Eastern Time on November 8, 2016 (November
9, 2016 at 9:00 a.m.
Beijing / Hong Kong time) to discuss its third quarter
2016 unaudited financial results and operating performance.
To participate in the call, please use the dial-in numbers and
conference ID below:
International:
|
+65 6713
5440
|
Mainland
China:
|
400
1200654
|
Hong Kong:
|
+852 3018
6776
|
United
States:
|
+1 845 675
0438
|
Conference
ID:
|
8059342
|
A replay of the call will be available through November 16, 2016 by using the dial-in numbers
and conference ID below:
International:
|
+61 2900
34211
|
Mainland
China:
|
400
6322162
|
Hong
Kong:
|
+852 3051
2780
|
United
States:
|
+1 646 254
3697
|
Conference
ID:
|
8059342
|
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
http://ir.ifeng.com.
Use of Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in
accordance with the United States Generally Accepted Accounting
Principles ("GAAP"), Phoenix New Media Limited uses non-GAAP gross
profit, non-GAAP gross margin, non-GAAP income from operations,
non-GAAP operating margin, non-GAAP net income attributable to
Phoenix New Media Limited, non-GAAP net profit margin and non-GAAP
net income per diluted ADS, each of which is a non-GAAP financial
measure. Non-GAAP gross profit is gross profit excluding
share-based compensation. Non-GAAP gross margin is non-GAAP gross
profit divided by total revenues. Non-GAAP income from operations
is income from operations excluding share-based compensation.
Non-GAAP operating margin is non-GAAP income from operations
divided by total revenues. Non-GAAP net income attributable to
Phoenix New Media Limited is net income attributable to Phoenix New
Media Limited excluding share-based compensation and loss from
equity investments, including impairments and gain on disposal of
an equity investment and acquisition of available-for-sale
investments. Non-GAAP net profit margin is non-GAAP net income
attributable to Phoenix New Media Limited divided by total
revenues. Non-GAAP net income per diluted ADS is non-GAAP net
income attributable to Phoenix New Media Limited divided by
weighted average number of diluted ADSs. The Company believes that
separate analysis and exclusion of the non-cash impact of
share-based compensation and the non-operating impact of loss from
equity investments, including impairments and gain on disposal of
an equity investment and acquisition of available-for-sale
investments, add clarity to the constituent parts of its
performance. The Company reviews non-GAAP net income together with
net income 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 multiple measures to evaluate its
business allows both management and investors to assess the
Company's performance against its competitors. The Company also
believes that non-GAAP financial measures are useful supplemental
information for investors and analysts to assess its operating
performance without the effect of non-cash share-based compensation
and non-operating loss from equity investments, including
impairments and gain on disposal of an equity investment and
acquisition of available-for-sale investments. Share-based
compensation and loss from equity investments, including
impairments have been and will continue to be significant and
recurring in its business. However, the use of non-GAAP financial
measures has material limitations as an analytical tool. One of the
limitations of using non-GAAP financial measures is that they do
not include all items that impact the Company's net income for the
period. In addition, because non-GAAP financial measures are not
measured 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 non-GAAP financial measure 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 RMB6.6685 to US$1.00, the noon buying rate in effect on
September 30, 2016 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 platform across
Internet, mobile and TV channels 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 and through their mobile
devices. Phoenix New Media's platform includes its ifeng.com
channel, consisting of its ifeng.com website and web-based game
platform, its video channel, comprised of its dedicated video
vertical and mobile video services, and its mobile channel,
including its mobile Internet website, mobile applications 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; 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,
|
|
September
30,
|
|
September
30,
|
2015
|
|
2016
|
|
2016
|
|
RMB
|
|
RMB
|
|
US$
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
310,669
|
|
144,046
|
|
21,601
|
Term deposits and
short term investments
|
769,681
|
|
719,069
|
|
107,831
|
Restricted
cash
|
125,000
|
|
295,900
|
|
44,373
|
Accounts receivable,
net
|
506,351
|
|
398,456
|
|
59,752
|
Amounts due from
related parties
|
124,677
|
|
271,159
|
|
40,663
|
Prepayment and other
current assets
|
58,574
|
|
72,823
|
|
10,921
|
Convertible debts to a
related party
|
-
|
|
136,945
|
|
20,536
|
Deferred tax
assets
|
35,963
|
|
52,584
|
|
7,885
|
Total current
assets
|
1,930,915
|
|
2,090,982
|
|
313,562
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
80,537
|
|
69,954
|
|
10,490
|
Intangible assets,
net
|
12,404
|
|
9,745
|
|
1,461
|
Available-for-sale
investments
|
513,994
|
|
505,681
|
|
75,831
|
Equity investments,
net
|
11,610
|
|
8,788
|
|
1,318
|
Other non-current
assets
|
17,746
|
|
17,124
|
|
2,568
|
Total non-current
assets
|
636,291
|
|
611,292
|
|
91,668
|
Total
assets
|
2,567,206
|
|
2,702,274
|
|
405,230
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
loans
|
131,046
|
|
300,692
|
|
45,091
|
Accounts
payable
|
289,148
|
|
241,104
|
|
36,156
|
Amounts due to related
parties
|
19,368
|
|
21,290
|
|
3,193
|
Advances from
customers
|
15,239
|
|
25,573
|
|
3,835
|
Taxes
payable
|
93,120
|
|
62,073
|
|
9,308
|
Salary and welfare
payable
|
114,028
|
|
117,410
|
|
17,607
|
Accrued expenses and
other current liabilities
|
80,891
|
|
77,091
|
|
11,560
|
Total current
liabilities
|
742,840
|
|
845,233
|
|
126,750
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
1,312
|
|
1,312
|
|
197
|
Long-term
liabilities
|
18,368
|
|
20,959
|
|
3,143
|
Total non-current
liabilities
|
19,680
|
|
22,271
|
|
3,340
|
Total
liabilities
|
762,520
|
|
867,504
|
|
130,090
|
Shareholders'
equity:
|
|
|
|
|
|
Phoenix New Media
Limited shareholders' equity:
|
|
|
|
|
|
Class A ordinary
shares
|
16,733
|
|
16,818
|
|
2,522
|
Class B ordinary
shares
|
22,053
|
|
22,053
|
|
3,307
|
Additional paid-in
capital
|
1,551,104
|
|
1,553,263
|
|
232,925
|
Statutory
reserves
|
70,311
|
|
70,311
|
|
10,544
|
Retained
earnings
|
122,093
|
|
162,925
|
|
24,432
|
Accumulated other
comprehensive income
|
23,341
|
|
12,228
|
|
1,834
|
Total Phoenix New
Media Limited shareholders' equity
|
1,805,635
|
|
1,837,598
|
|
275,564
|
Noncontrolling
interests
|
(949)
|
|
(2,828)
|
|
(424)
|
Total
shareholders' equity
|
1,804,686
|
|
1,834,770
|
|
275,140
|
Total liabilities
and shareholders' equity
|
2,567,206
|
|
2,702,274
|
|
405,230
|
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 28, 2016.
|
Phoenix New Media
Limited
|
Condensed
Consolidated Statements of Comprehensive Income
|
(Amounts in
thousands, except for number of shares and per share (or ADS)
data)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising revenues
|
300,042
|
|
297,230
|
|
310,439
|
|
46,553
|
|
880,326
|
|
879,052
|
|
131,822
|
Paid service
revenues
|
90,377
|
|
52,833
|
|
49,583
|
|
7,436
|
|
298,101
|
|
153,973
|
|
23,090
|
Total
revenues
|
390,419
|
|
350,063
|
|
360,022
|
|
53,989
|
|
1,178,427
|
|
1,033,025
|
|
154,912
|
Cost of
revenues
|
(209,841)
|
|
(180,508)
|
|
(182,927)
|
|
(27,432)
|
|
(622,358)
|
|
(521,603)
|
|
(78,219)
|
Gross
profit
|
180,578
|
|
169,555
|
|
177,095
|
|
26,557
|
|
556,069
|
|
511,422
|
|
76,693
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses
|
(83,568)
|
|
(87,017)
|
|
(74,210)
|
|
(11,128)
|
|
(263,377)
|
|
(236,785)
|
|
(35,508)
|
General and
administrative expenses
|
(45,715)
|
|
(57,587)
|
|
(37,897)
|
|
(5,683)
|
|
(123,969)
|
|
(140,527)
|
|
(21,074)
|
Technology and
product development
expenses
|
(42,992)
|
|
(42,074)
|
|
(37,756)
|
|
(5,662)
|
|
(126,756)
|
|
(120,188)
|
|
(18,023)
|
Total operating
expenses
|
(172,275)
|
|
(186,678)
|
|
(149,863)
|
|
(22,473)
|
|
(514,102)
|
|
(497,500)
|
|
(74,605)
|
Income/(loss) from
operations
|
8,303
|
|
(17,123)
|
|
27,232
|
|
4,084
|
|
41,967
|
|
13,922
|
|
2,088
|
Other
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
6,987
|
|
8,257
|
|
7,943
|
|
1,191
|
|
22,752
|
|
24,328
|
|
3,648
|
Interest
expense
|
(1,129)
|
|
(954)
|
|
(1,554)
|
|
(233)
|
|
(1,600)
|
|
(3,283)
|
|
(492)
|
Foreign
currency exchange gain/(loss)
|
2,711
|
|
2,411
|
|
575
|
|
86
|
|
(1,797)
|
|
1,122
|
|
168
|
Loss from
equity investments, including
impairments
|
(2,703)
|
|
(1,512)
|
|
(1,242)
|
|
(186)
|
|
(32,090)
|
|
(1,747)
|
|
(262)
|
Gain on
disposal of an equity investment
and acquisition of available-for-sale
investments
|
-
|
|
-
|
|
-
|
|
-
|
|
4,643
|
|
-
|
|
-
|
Others,
net
|
10,965
|
|
4,220
|
|
1,021
|
|
153
|
|
16,228
|
|
9,447
|
|
1,416
|
Income/(loss)
before tax
|
25,134
|
|
(4,701)
|
|
33,975
|
|
5,095
|
|
50,103
|
|
43,789
|
|
6,566
|
Income tax
(expense)/benefit
|
(4,271)
|
|
1,442
|
|
(2,879)
|
|
(432)
|
|
(18,359)
|
|
(4,836)
|
|
(725)
|
Net
income/(loss)
|
20,863
|
|
(3,259)
|
|
31,096
|
|
4,663
|
|
31,744
|
|
38,953
|
|
5,841
|
Net loss
attributable to noncontrolling
interests
|
332
|
|
778
|
|
599
|
|
90
|
|
777
|
|
1,879
|
|
282
|
Net income/(loss)
attributable to Phoenix
New Media Limited
|
21,195
|
|
(2,481)
|
|
31,695
|
|
4,753
|
|
32,521
|
|
40,832
|
|
6,123
|
Net
income/(loss)
|
20,863
|
|
(3,259)
|
|
31,096
|
|
4,663
|
|
31,744
|
|
38,953
|
|
5,841
|
Other
comprehensive (loss)/income, net of
tax: fair value remeasurement for available-
for-sale investments
|
(3,008)
|
|
11,329
|
|
(39,610)
|
|
(5,940)
|
|
2,493
|
|
(22,967)
|
|
(3,444)
|
Other
comprehensive (loss)/income, net of
tax: foreign currency translation adjustment
|
(4,026)
|
|
11,002
|
|
2,920
|
|
438
|
|
(4,407)
|
|
11,854
|
|
1,778
|
Comprehensive
income/(loss)
|
13,829
|
|
19,072
|
|
(5,594)
|
|
(839)
|
|
29,830
|
|
27,840
|
|
4,175
|
Comprehensive
loss attributable to
noncontrolling interests
|
332
|
|
778
|
|
599
|
|
90
|
|
777
|
|
1,879
|
|
282
|
Comprehensive
income/(loss) attributable
to Phoenix New Media Limited
|
14,161
|
|
19,850
|
|
(4,995)
|
|
(749)
|
|
30,607
|
|
29,719
|
|
4,457
|
Net income/(loss)
attributable to Phoenix
New Media Limited
|
21,195
|
|
(2,481)
|
|
31,695
|
|
4,753
|
|
32,521
|
|
40,832
|
|
6,123
|
Net income/(loss) per
Class A and Class B
ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.04
|
|
(0.00)
|
|
0.06
|
|
0.01
|
|
0.06
|
|
0.07
|
|
0.01
|
Diluted
|
0.04
|
|
(0.00)
|
|
0.05
|
|
0.01
|
|
0.06
|
|
0.07
|
|
0.01
|
Net income/(loss) per
ADS (1 ADS
represents 8 Class A ordinary shares):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.30
|
|
(0.03)
|
|
0.44
|
|
0.07
|
|
0.46
|
|
0.57
|
|
0.09
|
Diluted
|
0.29
|
|
(0.03)
|
|
0.44
|
|
0.07
|
|
0.45
|
|
0.57
|
|
0.08
|
Weighted average
number of Class A and
Class B ordinary shares used in computing
net income/(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
571,085,620
|
|
573,074,298
|
|
574,124,546
|
|
574,124,546
|
|
570,914,628
|
|
573,401,254
|
|
573,401,254
|
Diluted
|
579,594,405
|
|
573,074,298
|
|
577,432,460
|
|
577,432,460
|
|
581,481,273
|
|
577,056,594
|
|
577,056,594
|
Phoenix New Media
Limited
|
Condensed Segments
Information
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
300,042
|
|
297,230
|
|
310,439
|
|
46,553
|
|
880,326
|
|
879,052
|
|
131,822
|
Paid
service
|
90,377
|
|
52,833
|
|
49,583
|
|
7,436
|
|
298,101
|
|
153,973
|
|
23,090
|
Total
revenues
|
390,419
|
|
350,063
|
|
360,022
|
|
53,989
|
|
1,178,427
|
|
1,033,025
|
|
154,912
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
142,043
|
|
146,233
|
|
151,770
|
|
22,760
|
|
414,277
|
|
424,035
|
|
63,588
|
Paid
service
|
67,798
|
|
34,275
|
|
31,157
|
|
4,672
|
|
208,081
|
|
97,568
|
|
14,631
|
Total cost of
revenues
|
209,841
|
|
180,508
|
|
182,927
|
|
27,432
|
|
622,358
|
|
521,603
|
|
78,219
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
157,999
|
|
150,997
|
|
158,669
|
|
23,793
|
|
466,049
|
|
455,017
|
|
68,234
|
Paid
service
|
22,579
|
|
18,558
|
|
18,426
|
|
2,764
|
|
90,020
|
|
56,405
|
|
8,459
|
Total gross
profit
|
180,578
|
|
169,555
|
|
177,095
|
|
26,557
|
|
556,069
|
|
511,422
|
|
76,693
|
Reconciliations of
Non-GAAP Results of Operations Measures to the Nearest Comparable
GAAP Measures
|
|
(Amounts in
thousands, except for number of ADSs and per ADS
data)
|
|
|
Three Months Ended
September 30, 2015
|
|
Three Months Ended
June 30, 2016
|
|
Three Months Ended
September 30, 2016
|
|
|
|
|
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
|
180,578
|
|
4,139
|
(1)
|
184,717
|
|
169,555
|
|
845
|
(1)
|
170,400
|
|
177,095
|
|
(5,115)
|
(1)
|
171,980
|
|
Gross
margin
|
46.3%
|
|
|
|
47.3%
|
|
48.4%
|
|
|
|
48.7%
|
|
49.2%
|
|
|
|
47.8%
|
|
Income/(loss) from
operations
|
8,303
|
|
12,045
|
(1)
|
20,348
|
|
(17,123)
|
|
4,453
|
(1)
|
(12,670)
|
|
27,232
|
|
(8,186)
|
(1)
|
19,046
|
|
Operating profit
margin
|
2.1%
|
|
|
|
5.2%
|
|
-4.9%
|
|
|
|
-3.6%
|
|
7.6%
|
|
|
|
5.3%
|
|
|
|
|
12,045
|
(1)
|
|
|
|
|
4,453
|
(1)
|
|
|
|
|
(8,186)
|
(1)
|
|
|
|
|
|
2,703
|
(2)
|
|
|
|
|
1,512
|
(2)
|
|
|
|
|
1,242
|
(2)
|
|
|
Net income/(loss)
attributable
to Phoenix New Media Limited
|
21,195
|
|
14,748
|
|
35,943
|
|
(2,481)
|
|
5,965
|
|
3,484
|
|
31,695
|
|
(6,944)
|
|
24,751
|
|
Net profit
margin
|
5.4%
|
|
|
|
9.2%
|
|
-0.7%
|
|
|
|
1.0%
|
|
8.8%
|
|
|
|
6.9%
|
|
Net income/(loss)
per
ADS--diluted
|
0.29
|
|
|
|
0.50
|
|
(0.03)
|
|
|
|
0.05
|
|
0.44
|
|
|
|
0.34
|
|
Weighted average
number of
ADSs used in computing
diluted net income/(loss) per
ADS
|
72,449,301
|
|
|
|
72,449,301
|
|
71,634,287
|
|
|
|
71,634,287
|
|
72,179,058
|
|
|
|
72,179,058
|
|
(1) Share-based
compensation
|
(2) Loss from equity
investments, including impairments
|
Non-GAAP to GAAP
reconciling items have no income tax effect.
|
Details of cost of
revenues are as follows:
|
|
Three Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
(Amounts in
thousands)
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Revenue sharing
fees
|
51,576
|
|
19,274
|
|
16,559
|
|
2,483
|
Content and
operational costs
|
107,812
|
|
117,190
|
|
119,538
|
|
17,926
|
Bandwidth
costs
|
20,696
|
|
15,291
|
|
16,404
|
|
2,460
|
Sales taxes and
surcharges
|
29,757
|
|
28,753
|
|
30,426
|
|
4,563
|
Total cost of
revenues
|
209,841
|
|
180,508
|
|
182,927
|
|
27,432
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-third-quarter-2016-unaudited-financial-results-300359140.html
SOURCE Phoenix New Media Limited