BEIJING, Nov. 20, 2012 /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
third quarter ended September 30,
2012.
Third Quarter 2012 Highlights
- Total revenues increased by 5.8% year-over-year to RMB286.4 million (US$45.6
million), driven by an 11.4% increase in net advertising
revenues.
- Net income attributable to Phoenix New Media was RMB11.5 million (US$1.8
million), as compared to RMB56.8
million in the third quarter of 2011.
- Adjusted net income attributable to Phoenix New Media(1) was
RMB14.1 million (US$2.2 million), as compared to RMB61.5 million in the third quarter of
2011.
Mr. Shuang Liu, CEO of Phoenix
New Media, stated, "Even though our advertising business continued
to experience softness due to the uncertainty of the macro-economic
situation, advertisers continued to demonstrate confidence in our
media platform by increasing their average spending on our platform
by nearly 36% year-over-year. This increase was a direct result of
our premium content which generated over 110% year-over-year growth
to 38 million in ifeng's daily unique visitors in September, the
growth of which continued to significantly outpace our peers,
according to iResearch. Looking forward, we remain confident
that once the macro-economic situation stabilizes, we can expect
stabilization in the overall advertising business, providing us
improved visibility in the coming quarters."
Third Quarter 2012 Financial
Results
REVENUES
Total revenues for the third quarter of 2012 increased by 5.8%
to RMB286.4 million (US$45.6 million) from RMB270.8 million in the third quarter of
2011.
Net advertising revenues, calculated net of advertising agency
service fees, for the third quarter of 2012 increased by 11.4% to
RMB140.5 million (US$22.4 million) from RMB126.2 million in the third quarter of 2011,
primarily due to an increase in average revenue per advertiser
("ARPA") of 35.5% to RMB585,500
(US$93,100) for 240 total
advertisers.
Paid service revenues for the third quarter of 2012 increased by
0.9% to RMB145.8 million
(US$23.2 million) from RMB144.6 million in the third quarter of 2011.
Mobile Internet and value-added services ("MIVAS")(2) revenues
decreased by 7.0% to RMB125.5 million
(US$20.0 million) in the third
quarter of 2012 from RMB134.9 million
in the third quarter of 2011 due to the expected decrease in sales
from 2G text message based pay-per-view services. Video value-added
services ("video VAS") revenues increased by 109.9% to RMB20.4 million (US$3.2
million) in the third quarter of 2012 from RMB9.7 million in the third quarter of 2011,
primarily due to an expansion in video VAS user base across the
three major telecom operators in China.
COST OF REVENUES AND GROSS
PROFIT
Cost of revenues for the third quarter of 2012 increased by
14.5% to RMB173.9 million
(US$27.7 million) from RMB151.9 million in the third quarter of 2011.
Revenue sharing fees to telecom operators and channel
partners decreased to RMB79.4 million
(US$12.6 million) in the third
quarter of 2012 from RMB89.1 million
in the third quarter of 2011, primarily due to the decrease in
MIVAS revenues. Content and operational costs increased to
RMB60.1 million (US$9.6 million) in the third quarter of 2012 from
RMB37.9 million in the third quarter
of 2011 due to the increase in staff-related costs, office rental
fees, as well as the increase in content production and acquisition
costs. Bandwidth costs increased to RMB20.2 million (US$3.2
million) in the third quarter of 2012 from RMB9.5 million in the third quarter of 2011
primarily due to the significant growth in user traffic.
Sales tax and surcharges decreased to RMB14.2 million (US$2.3
million) in the third quarter of 2012 from RMB15.4 million in the third quarter of 2011.
Share-based compensation expenses included in cost of
revenues was RMB0.6 million
(US$0.1 million) in the third quarter
of 2012 as compared to RMB1.2 million
in the third quarter of 2011.
Gross profit for the third quarter of 2012 decreased by 5.4% to
RMB112.5 million (US$17.9 million) from RMB118.9 million in the third quarter of 2011.
Gross margin was 39.3% in the third quarter of 2012 as compared to
43.9% in the third quarter of 2011, mainly due to the increase in
staff-related costs, bandwidth costs and office rental fees.
Adjusted gross margin, which excludes share-based compensation
expenses, was 39.5% in the third quarter of 2012 as compared to
44.3% in the third quarter of 2011.
OPERATING EXPENSES AND INCOME FROM
OPERATIONS
Total operating expenses for the third quarter of 2012 increased
by 46.3% to RMB108.8 million
(US$17.3 million) from RMB74.3 million in the third quarter of 2011. The
increase in operating expenses was primarily attributable to
increased staff-related costs, marketing and promotion events and
office rental fees.Share-based compensation expenses included in
operating expenses was RMB2.0 million
(US$0.3 million) in the third quarter
of 2012 as compared to RMB3.5 million
in the third quarter of 2011.
Income from operations for the third quarter of 2012 was
RMB3.7 million (US$0.6 million) as compared to RMB44.5 million in the third quarter of 2011.
Operating margin was 1.3% for the third quarter of 2012 as compared
to 16.4% in the third quarter of 2011. The decrease in operating
margin was primarily due to increased headcount, marketing and
promotion events and office rental fees.
Adjusted income from operations, which excludes the impact of
share-based compensation expenses, for the third quarter of 2012
was RMB6.3 million (US$1.0 million) as compared to RMB49.2 million in the third quarter of
2011.Adjusted operating margin was 2.2% for the third quarter of
2012 as compared to 18.2% in the third quarter of 2011.
FOREIGN CURRENCY EXCHANGE GAIN/LOSS
AND INTEREST INCOME
Foreign currency exchange loss for the third quarter of 2012 was
RMB2.0 million (US$0.3 million), as compared to an exchange gain
of RMB13.3 million in the third
quarter of 2011. Interest income for the third quarter of 2012 was
RMB8.2 million (US$1.3 million), as compared to RMB4.3 million in the third quarter of 2011. The
increase in interest income was primarily due to higher deposit
levels resulting from the Company's IPO net proceeds.
NET INCOME
Net income attributable to Phoenix New Media for the third
quarter of 2012 was RMB11.5 million
(US$1.8 million) as compared to
RMB56.8 million in the third quarter
of 2011. Net margin for the third quarter of 2012 was 4.0% as
compared to 21.0% in third quarter of 2011.Net income per diluted
ADS(3) in the third quarter of 2012 was RMB0.14 (US$0.02)
as compared to RMB0.70 in the third
quarter of 2011.
Adjusted net income attributable to Phoenix New Media for the
third quarter of 2012, which excludes share-based compensation
expenses, was RMB14.1 million
(US$2.2 million) as compared to
RMB61.5 million in the third quarter
of 2011. Adjusted net margin for the third quarter of 2012 was 4.9%
as compared to 22.7% in the third quarter of 2011. Adjusted net
income per diluted ADS was RMB0.17
(US$0.03) in the third quarter of
2012, as compared to RMB0.76 in the
third quarter of 2011.
For the third quarter of 2012, the Company's weighted average
number of ADS used in computing diluted net income per ADS was
80,672,024.
Business Outlook
For the fourth quarter of 2012, the Company expects its total
revenues to be between RMB266 million and
RMB276 million. Net advertising revenues are expected
to be between RMB166 million and RMB171
million. Paid service revenues are expected to be
between RMB100 million and RMB105
million. These forecasts reflect the Company's current
and preliminary view on the market and operational conditions,
which are subject to change.
Share Repurchase Program
As of September 30, 2012, the
Company had repurchased an aggregate of 1,228,724 American
Depositary Shares ("ADSs") at an aggregate cost of approximately
US$4.5 million on the open market.
Under its ADS repurchase program, the Company has been authorized
to repurchase up to US$20 million of
its outstanding ADSs for a period not to exceed twelve (12) months
since August 2012. The Company
expects to continue to implement its share repurchase program in a
manner consistent with market conditions and the interest of its
shareholders, subject to the restrictions relating to volume, price
and timing under applicable law.
Conference Call Information
The Company will hold a conference call at 8:00p.m. U.S. Eastern Time on November 20, 2012 (November 21, 2012 at 9:00a.m. Beijing
/ Hong Kong time) to discuss its
third quarter 2012 financial results and operating performance.
To participate in the call, please dial the following
numbers:
International:
|
+6567239385
|
China:
|
4001200654
|
Hong
Kong:
|
+85230512745
|
United
States:
|
+16462543515
|
Conference
ID:
|
59655968
|
A replay of the call will be available through November 26, 2012 by dialing the following
numbers:
International:
|
+61281990299
|
China:
|
4001200932
|
United
States:
|
+18554525696
|
Hong
Kong:
|
+85230512780
|
Conference
ID:
|
59655968
|
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 uses adjusted gross profit,
adjusted gross margin, adjusted income from operations, adjusted
operating margin, adjusted net income attributable to Phoenix New
Media, adjusted net margin, adjusted net income attributable to
ordinary shareholders and adjusted net income per diluted ADS, each
of which is a non-GAAP financial measure. Adjusted gross profit is
gross profit excluding share-based compensation expenses. Adjusted
gross margin is adjusted gross profit divided by total revenues.
Adjusted income from operations is income from operations excluding
share-based compensation expenses. Adjusted operating margin is
adjusted income from operations divided by total revenues.
Adjusted net income attributable to Phoenix New Media is net
income attributable to Phoenix New Media excluding share-based
compensation expenses. Adjusted net margin is adjusted net income
attributable to Phoenix New Media divided by total revenues.
Adjusted net income attributable to ordinary shareholders is net
income attributable to ordinary shareholders excluding share-based
compensation expenses. Adjusted net income per diluted ADS is
adjusted net income attributable to ordinary shareholders divided
by weighted average number of diluted ADS. The Company believes
that separate analysis and exclusion of the non-cash impact of
share-based compensation adds clarity to the constituent parts of
its performance. The Company reviews adjusted net income together
with net income to obtain a better understanding of its operating
performance. It uses this non-GAAP financial measure 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 and ultimately monitor its
capacity to generate returns for its investors. 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
expenses, which have been and will continue to be significant
recurring expenses 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 similar 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 measure prepared in accordance with
U.S. 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 RMB6.2848 to US$1.00, the noon buying rate in effect on
September 30, 2012 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 the 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, its
video channel, comprised of its dedicated video vertical and video
services and applications, and its mobile channel, including its
mobile Internet website and mobile Internet and value-added
services ("MIVAS").
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 the online and mobile
advertising, online video and mobile paid service markets in
China; the Company's reliance on
online advertising and MIVAS for the majority of its total
revenues; the Company's expectations regarding demand for and
market acceptance of its services; the Company's expectations
regarding the retention and strengthening of 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 service offerings; the
Company's reliance on mobile operators in China to provide most of its MIVAS; changes by
mobile operators in China to their
policies for MIVAS; 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 report on Form 20−F. All information provided in
this press release and in the attachments is as of the date of this
press release, and Phoenix New Media does not undertake any
obligation to update any forward−looking statement, except as
required under applicable law.
(1) An
explanation of the Company's non-GAAP financial measures is
included in the section entitled "Use of Non-GAAP Financial
Measures" below, and 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".
|
(2) MIVAS
includes Internet VAS, which was previously a separate component of
paid service.
|
(3) "ADS"
is American Depositary Share. Each ADS represents eight ordinary
shares.
|
For investor and media inquiries please contact:
Phoenix New Media Limited
Matthew Zhao
Tel: +86 (10) 6067-6868
Email: ir@ifeng.com
ICR, Inc.
Jeremy Peruski
Tel: +1 (646) 405-4883
Email: Jeremy.peruski@icrinc.com
Phoenix
New Media Limited
|
Unaudited Condensed Consolidated Balance
Sheets
|
(Amounts in thousands)
|
|
|
|
December 31,
|
|
September 30,
|
|
September 30,
|
|
2011
|
2012
|
|
2012
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
|
397,166
|
|
|
319,091
|
|
|
50,772
|
|
Term
deposit
|
|
|
784,023
|
|
|
797,972
|
|
|
126,969
|
|
Accounts
receivable, net
|
|
|
202,097
|
|
|
308,887
|
|
|
49,148
|
|
Amounts
due from related parties
|
|
|
64,388
|
|
|
61,836
|
|
|
9,839
|
|
Prepayment
and other current assets
|
|
|
46,334
|
|
|
76,827
|
|
|
12,224
|
|
Deferred
tax assets
|
|
|
11,931
|
|
|
20,506
|
|
|
3,263
|
|
Total
current assets
|
|
|
1,505,939
|
|
|
1,585,119
|
|
|
252,215
|
Non
current assets:
|
|
|
|
|
|
|
|
|
|
|
Property
and equipment, net
|
|
|
41,012
|
|
|
99,880
|
|
|
15,892
|
|
Intangible
assets, net
|
|
|
5,415
|
|
|
8,385
|
|
|
1,334
|
|
Other
non-current assets
|
|
|
12,128
|
|
|
11,139
|
|
|
1,773
|
|
Total
non-current assets
|
|
|
58,555
|
|
|
119,404
|
|
|
18,999
|
Total
assets
|
|
|
1,564,494
|
|
|
1,704,523
|
|
|
271,214
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
120,910
|
|
|
171,759
|
|
|
27,329
|
|
Amounts
due to related parties
|
|
|
3,889
|
|
|
16,046
|
|
|
2,553
|
|
Advances
from customers
|
|
|
7,191
|
|
|
11,977
|
|
|
1,906
|
|
Taxes
payable
|
|
|
35,822
|
|
|
29,140
|
|
|
4,637
|
|
Salary and
welfare payable
|
|
|
45,119
|
|
|
51,289
|
|
|
8,161
|
|
Accrued
expenses and other current liabilities
|
|
|
39,276
|
|
|
43,486
|
|
|
6,919
|
|
Total
current liabilities
|
|
|
252,207
|
|
|
323,697
|
|
|
51,505
|
|
Long-term
liabilities
|
|
|
5,504
|
|
|
7,224
|
|
|
1,149
|
Total
liabilities
|
|
|
257,711
|
|
|
330,921
|
|
|
52,654
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
|
42,054
|
|
|
42,271
|
|
|
6,726
|
|
Additional
paid-in capital
|
|
|
1,830,882
|
|
|
1,818,767
|
|
|
289,391
|
|
Treasury
stock
|
|
|
-
|
|
|
(7,106)
|
|
|
(1,131)
|
|
Statutory
reserves
|
|
|
24,647
|
|
|
24,647
|
|
|
3,922
|
|
Accumulated deficit
|
|
|
(555,831)
|
|
|
(476,334)
|
|
|
(75,790)
|
|
Accumulated other comprehensive loss
|
|
|
(34,969)
|
|
|
(28,643)
|
|
|
(4,558)
|
|
Total
shareholders' equity
|
|
|
1,306,783
|
|
|
1,373,602
|
|
|
218,560
|
Total
liabilities and shareholders' equity
|
|
|
1,564,494
|
|
|
1,704,523
|
|
|
271,214
|
Phoenix
New Media Limited
|
Unaudited Condensed Consolidated Statements of
Operations
|
(Amounts in thousands, except for number of shares
and per share data)
|
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
September 30,
|
|
June
30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2011
|
|
2012
|
|
2012
|
|
2012
|
|
2011
|
|
2012
|
|
2012
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net advertising revenues
|
|
|
126,172
|
|
|
147,603
|
|
|
140,521
|
|
|
22,359
|
|
|
315,387
|
|
|
417,022
|
|
|
66,354
|
Paid service revenues
|
|
|
144,599
|
|
|
135,777
|
|
|
145,837
|
|
|
23,205
|
|
|
354,753
|
|
|
391,788
|
|
|
62,339
|
Total
revenues
|
|
|
270,771
|
|
|
283,380
|
|
|
286,358
|
|
|
45,564
|
|
|
670,140
|
|
|
808,810
|
|
|
128,693
|
Cost of
revenues
|
|
|
(151,912)
|
|
|
(157,313)
|
|
|
(173,887)
|
|
|
(27,668)
|
|
|
(390,440)
|
|
|
(466,224)
|
|
|
(74,183)
|
Gross
profit
|
|
|
118,859
|
|
|
126,067
|
|
|
112,471
|
|
|
17,896
|
|
|
279,700
|
|
|
342,586
|
|
|
54,510
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses
|
|
|
(36,890)
|
|
|
(37,218)
|
|
|
(54,073)
|
|
|
(8,604)
|
|
|
(113,166)
|
|
|
(130,773)
|
|
|
(20,808)
|
General and administrative expenses
|
|
|
(19,716)
|
|
|
(31,591)
|
|
|
(29,029)
|
|
|
(4,619)
|
|
|
(55,679)
|
|
|
(78,004)
|
|
|
(12,412)
|
Technology and product development expenses
|
|
|
(17,732)
|
|
|
(22,208)
|
|
|
(25,676)
|
|
|
(4,085)
|
|
|
(51,114)
|
|
|
(67,875)
|
|
|
(10,799)
|
Total
operating expenses
|
|
|
(74,338)
|
|
|
(91,017)
|
|
|
(108,778)
|
|
|
(17,308)
|
|
|
(219,959)
|
|
|
(276,652)
|
|
|
(44,019)
|
Income
from operations
|
|
|
44,521
|
|
|
35,050
|
|
|
3,693
|
|
|
588
|
|
|
59,741
|
|
|
65,934
|
|
|
10,491
|
Other
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
4,260
|
|
|
8,554
|
|
|
8,150
|
|
|
1,297
|
|
|
4,699
|
|
|
25,466
|
|
|
4,052
|
Foreign currency exchange gain/(loss)
|
|
|
13,318
|
|
|
(3,474)
|
|
|
(1,976)
|
|
|
(314)
|
|
|
13,418
|
|
|
(4,692)
|
|
|
(747)
|
Others, net
|
|
|
1,010
|
|
|
1,487
|
|
|
1,494
|
|
|
237
|
|
|
1,967
|
|
|
4,508
|
|
|
718
|
Net
income before tax
|
|
|
63,109
|
|
|
41,617
|
|
|
11,361
|
|
|
1,808
|
|
|
79,825
|
|
|
91,216
|
|
|
14,514
|
Income taxes expenses
|
|
|
(6,271)
|
|
|
(6,595)
|
|
|
181
|
|
|
28
|
|
|
(12,989)
|
|
|
(11,719)
|
|
|
(1,865)
|
Net
income attributable to
Phoenix New Media
|
|
|
56,838
|
|
|
35,022
|
|
|
11,542
|
|
|
1,836
|
|
|
66,836
|
|
|
79,497
|
|
|
12,649
|
Accretion to convertible redeemable preferred
share redemption value
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(773,623)
|
|
|
-
|
|
|
-
|
Income allocation to participating preferred
shares
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(6,172)
|
|
|
-
|
|
|
-
|
Net
income/(loss) attributable to
ordinary shareholders
|
|
|
56,838
|
|
|
35,022
|
|
|
11,542
|
|
|
1,836
|
|
|
(712,959)
|
|
|
79,497
|
|
|
12,649
|
Net
income/(loss) per ordinary share—basic
|
|
|
0.09
|
|
|
0.06
|
|
|
0.02
|
|
|
0.003
|
|
|
(1.46)
|
|
|
0.13
|
|
|
0.020
|
Net
income/(loss) per ordinary share—diluted
|
|
|
0.09
|
|
|
0.05
|
|
|
0.02
|
|
|
0.003
|
|
|
(1.46)
|
|
|
0.12
|
|
|
0.020
|
Weighted
average number of ordinary shares used
in computing basic net income/(loss) per
share
|
|
|
610,872,332
|
|
|
623,297,593
|
|
|
624,008,549
|
|
|
624,008,549
|
|
|
487,159,760
|
|
|
622,010,661
|
|
|
622,010,661
|
Weighted
average number of ordinary shares used
in computing diluted net income/(loss) per
share
|
|
|
648,380,080
|
|
|
648,612,661
|
|
|
645,376,189
|
|
|
645,376,189
|
|
|
487,159,760
|
|
|
647,617,767
|
|
|
647,617,767
|
Net
income/(loss) per ADS—basic
|
|
|
0.74
|
|
|
0.45
|
|
|
0.15
|
|
|
0.024
|
|
|
(11.71)
|
|
|
1.02
|
|
|
0.163
|
Net
income/(loss) per ADS—diluted
|
|
|
0.70
|
|
|
0.43
|
|
|
0.14
|
|
|
0.023
|
|
|
(11.71)
|
|
|
0.98
|
|
|
0.156
|
Weighted
average number of ADS used in
computing basic net income/(loss) per ADS
|
|
|
76,359,042
|
|
|
77,912,199
|
|
|
78,001,069
|
|
|
78,001,069
|
|
|
60,894,970
|
|
|
77,751,333
|
|
|
77,751,333
|
Weighted
average number of ADS used in
computing diluted net income/(loss) per ADS
|
|
|
81,047,510
|
|
|
81,076,583
|
|
|
80,672,024
|
|
|
80,672,024
|
|
|
60,894,970
|
|
|
80,952,221
|
|
|
80,952,221
|
Reconciliations of Non-GAAP Results of Operations
Measures to The Nearest Comparables GAAP Measures
|
(Amounts in thousands, except for number of shares
and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended September 30, 2011
|
|
Three
Months Ended June 30, 2012
|
|
Three
Months Ended September 30, 2012
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
GAAP
|
|
Adjustments (1)
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments (1)
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments (1)
|
|
Non-GAAP
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Gross profit
|
|
118,859
|
|
1,188
|
|
120,047
|
|
126,067
|
|
677
|
|
126,744
|
|
112,471
|
|
554
|
|
113,025
|
Gross
margin
|
|
43.9%
|
|
|
|
44.3%
|
|
44.5%
|
|
|
|
44.7%
|
|
39.3%
|
|
|
|
39.5%
|
Income
from operations
|
|
44,521
|
|
4,651
|
|
49,172
|
|
35,050
|
|
2,903
|
|
37,953
|
|
3,693
|
|
2,561
|
|
6,254
|
Operating
margin
|
|
16.4%
|
|
|
|
18.2%
|
|
12.4%
|
|
|
|
13.4%
|
|
1.3%
|
|
|
|
2.2%
|
Net
income attributable to PNM
|
|
56,838
|
|
4,651
|
|
61,489
|
|
35,022
|
|
2,903
|
|
37,925
|
|
11,542
|
|
2,561
|
|
14,103
|
Net
margin
|
|
21.0%
|
|
|
|
22.7%
|
|
12.4%
|
|
|
|
13.4%
|
|
4.0%
|
|
|
|
4.9%
|
Net
income attributable to ordinary shareholders
|
|
56,838
|
|
4,651
|
|
61,489
|
|
35,022
|
|
2,903
|
|
37,925
|
|
11,542
|
|
2,561
|
|
14,103
|
Net income
per ADS—diluted
|
|
0.70
|
|
|
|
0.76
|
|
0.43
|
|
|
|
0.47
|
|
0.14
|
|
|
|
0.17
|
Weighted
average number of ADS used in computing
diluted net income per ADS
|
|
81,047,510
|
|
|
|
81,047,510
|
|
81,076,583
|
|
|
|
81,076,583
|
|
80,672,024
|
|
|
|
80,672,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Non-GAAP adjustment is only to exclude share-based compensation
expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details
of cost of revenue is as follows:
|
|
|
Three
Months Ended
|
|
|
|
|
|
|
|
|
September 30,
|
|
June
30,
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2012
|
|
2012
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
(Amounts
in thousands)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Revenue
sharing fees
|
|
89,100
|
|
72,775
|
|
79,383
|
|
12,631
|
|
|
|
|
|
|
|
|
|
|
Content
and operational costs
|
|
37,920
|
|
50,530
|
|
60,109
|
|
9,564
|
|
|
|
|
|
|
|
|
|
|
Bandwidth
costs
|
|
9,489
|
|
16,739
|
|
20,175
|
|
3,210
|
|
|
|
|
|
|
|
|
|
|
Sales tax
and surcharages
|
|
15,403
|
|
17,269
|
|
14,220
|
|
2,263
|
|
|
|
|
|
|
|
|
|
|
Total
cost of revenue
|
|
151,912
|
|
157,313
|
|
173,887
|
|
27,668
|
|
|
|
|
|
|
|
|
|
|
SOURCE Phoenix New Media Limited