BEIJING, Aug. 14, 2018 /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, 2018.
Mr. Shuang Liu, CEO of Phoenix
New Media commented, "We made significant progress on product
innovation and content enrichment in the second quarter of 2018. We
further enhanced our content production capabilities focusing on
providing users with premium, original, unbiased, and exclusive
content in the forms of news reports, live broadcasts, as well as
documentaries and talk shows in video series format based on our
original creation.
In addition, we have maximized users' satisfaction while
optimizing our algorithms to effectively screen our content library
to ensure full compliance with emerging regulations. Going forward,
we will continue to leverage the credibility, authenticity and
influence of our premium content and our brand to further fortify
our leadership in the media industry in China."
Ms. Betty Ho, CFO of Phoenix New
Media, further stated, "We are delighted to deliver solid financial
results in the second quarter of 2018. The advertising revenue
generated from our FENG app has increased by 43.2% year-over-year
in the second quarter of 2018 under the old accounting standard. In
order to diversify our content, we are looking for new investment
opportunities in lifestyle related verticals, such as travel,
health and fashion, to expand our user base and improve retention
rate. Looking ahead, we will remain committed to investing in
content and product innovations to strengthen our competitive edge
while focusing on improving our profitability and maintaining our
growth momentum."
Adoption of ASC606
Beginning from January 1, 2018,
the Company adopted a new accounting standard of ASC606, Revenue
from Contracts with Customers (the "new accounting standard").
The financial data presented in the Company's financial statements
for the quarter and the six months ended June 30, 2018 are in accordance with the new
accounting standard while all financial data presented for the
quarter and the six months ended June 30,
2017 are in accordance with ASC605, Revenue
Recognition (the "old accounting standard").
The impact of applying the new accounting standard on the
Company's unaudited financial results as compared to the old
accounting standard for the quarter ended June 30, 2018 was as follows:
|
Three
Months Ended June 30,
2018
|
|
Old
Accounting
Standard(1)
|
Adjustments
|
New
Accounting
Standard(2)
|
|
|
Sales
Taxes And
Surcharges
|
|
Barter
Transactions
|
|
Contract
Fulfillment
Costs
|
|
|
(RMB in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
396,707
|
|
(34,337)
|
|
91
|
|
-
|
|
362,461
|
|
Net advertising
revenues
|
347,337
|
|
(31,393)
|
|
91
|
|
-
|
|
316,035
|
|
Paid services
revenues
|
49,370
|
|
(2,944)
|
|
-
|
|
-
|
|
46,426
|
|
Cost of
revenues
|
(167,284)
|
|
34,337
|
|
(73)
|
|
145
|
|
(132,875)
|
|
Gross
profit
|
229,423
|
|
-
|
|
18
|
|
145
|
|
229,586
|
|
Operating
expenses
|
(199,309)
|
|
-
|
|
(845)
|
|
-
|
|
(200,154)
|
|
Sales and marketing
expenses
|
(108,978)
|
|
-
|
|
(845)
|
|
-
|
|
(109,823)
|
|
Income from
operations
|
30,114
|
|
-
|
|
(827)
|
|
145
|
|
29,432
|
|
|
Note:
|
|
(1) This
financial information for the three months ended June 30, 2018 was
presented under the old accounting standard (ASC605).
|
|
(2) This
financial information for the three months ended June 30, 2018 was
presented under the new accounting standard (ASC606).
|
Second Quarter 2018 Financial Results
REVENUES
Total revenues for the second quarter of 2018 were RMB362.5 million (US$54.8
million) under the new accounting standard, which
represented a decrease of 7.8% from RMB393.3
million in the second quarter of 2017.
Net advertising revenues for the second quarter of 2018 were
RMB316.0 million (US$47.8 million) (net of advertising agency
service fees and sales taxes and surcharges) under the new
accounting standard, which represented a decrease of 6.7% from
RMB338.7 million in the second
quarter of 2017.
Paid services revenues[1] for the second quarter of
2018 were RMB46.5 million
(US$7.0 million) under the new
accounting standard, which represented a decrease of 14.9% from
RMB54.5 million in the second quarter
of 2017. Revenues from digital entertainment[2] for the
second quarter of 2018 were RMB37.8
million (US$5.7 million) under
the new accounting standard, which represented a decrease of 17.0%
from RMB45.6 million in the second
quarter of 2017. Revenues from games and others[3] for
the second quarter of 2018 were RMB8.7
million (US$1.3 million) under
the new accounting standard, which represented a decrease of 3.5%
from RMB9.0 million in the second
quarter of 2017.
Under the old accounting standard ASC605, total revenues for the
second quarter of 2018 would have been RMB396.7 million (US$60.0
million), which would have represented an increase of 0.9%
from RMB393.3 million in the second
quarter of 2017.
Under the old accounting standard ASC605, net advertising
revenues for the second quarter of 2018 would have been
RMB347.3 million (US$52.5 million), which would have represented an
increase of 2.5% from RMB338.7
million in the second quarter of 2017, primarily
attributable to a 23.0% year-over-year increase in mobile
advertising revenues that was partially offset by a 26.6%
year-over-year decrease in PC advertising revenues.
Under the old accounting standard ASC605, paid services revenues
for the second quarter of 2018 would have been RMB49.4 million (US$7.5
million), which would have represented a decrease of 9.5%
from RMB54.5 million in the second
quarter of 2017. Under the old accounting standard ASC605, revenues
from digital entertainment for the second quarter of 2018 would
have been RMB40.1 million
(US$6.1 million), which would have
represented a decrease of 12.0% from RMB45.6
million in the second quarter of 2017, due to a 29.3%
decrease in the MVAS revenues mainly resulting from the decline in
users' demand for services provided through telecom operators in
China. Under the old accounting
standard ASC605, revenues from games and others for the second
quarter of 2018 would have been RMB9.3
million (US$1.4 million),
which would have represented an increase of 3.3% from RMB9.0 million in the second quarter of 2017,
primarily attributable to the increase in revenues derived from
other new businesses while the revenues generated from web-based
games operated on the Company's own platforms were still
declining.
|
[1]
Paid services revenues comprise of (i) revenues from
digital entertainment, which includes MVAS and digital reading, and
(ii) revenues from games and others, which includes web-based
games, mobile games, content sales, and other online and mobile
paid services through the Company's own platforms
|
|
[2]
Digital entertainment includes mobile value-added services
delivered through telecom operators' platforms, or MVAS, and
digital reading.
|
|
[3]
Games and others include web-based and mobile games, and
other online and mobile paid services through the Company's own
platforms
|
COST OF REVENUES
Cost of revenues for the second quarter of 2018 was RMB132.9 million (US$20.1
million) under the new accounting standard, which
represented a decrease of 20.8% from RMB167.8 million in the second quarter of 2017.
Under the old accounting standard ASC605, cost of revenues for the
second quarter of 2018 would have been RMB167.3 million (US$25.3
million), which would have represented a decrease of 0.3%
from RMB167.8 million in the second
quarter of 2017. The decrease in cost of revenues under the new
accounting standard was mainly due to:
- The sales taxes and surcharges were RMB34.3 million (US$5.2
million) in the second quarter of 2018, which was excluded
from cost of revenues and recorded as a reduction item of revenues
under the new accounting standard, as compared to sales taxes and
surcharges of RMB33.2 million in the
second quarter of 2017, which was recorded as a component of cost
of revenues under the old accounting standard ASC605.
- Content and operational costs for the second quarter of 2018
increased slightly to RMB107.5
million (US$16.2 million) from
RMB106.0 million in the second
quarter of 2017.
- Revenue sharing fees to telecom operators and channel partners
for the second quarter of 2018 decreased by 23.9% to RMB11.5 million (US$1.7
million) from RMB15.1 million
in the second quarter of 2017. The decrease was primarily
attributable to a decrease in the sales of MVAS products.
- Bandwidth costs for the second quarter of 2018 increased
slightly to RMB13.9 million
(US$2.1 million) from RMB13.6 million in the second quarter of
2017.
- Share-based compensation included in cost of revenues was
RMB0.6 million (US$0.1 million) in the second quarter of 2018, as
compared to RMB1.2 million in the
second quarter of 2017. As the Company recognized share-based
compensation, net of estimated forfeitures, on a graded-vesting
basis over the vesting term of the awards, there was less
share-based compensation recognized in the second quarter of 2018
for share options granted prior to 2018.
GROSS PROFIT
Gross profit for the second quarter of 2018 was RMB229.6 million (US$34.7
million), as compared to RMB225.4
million in the second quarter of 2017. Gross margin for the
second quarter of 2018 increased to 63.3% from 57.3% in the second
quarter of 2017. The increase in gross margin was primarily
attributable to the increase in gross profit as well as the
decrease in revenues under the new accounting standard as explained
above.
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 2018, which
excluded share-based compensation, was 63.5%, as compared to 57.6%
in the second quarter of 2017.
OPERATING EXPENSES AND INCOME FROM
OPERATIONS
Total operating expenses for the second quarter of 2018
decreased by 0.1% to RMB200.2 million
(US$30.2 million) from RMB200.4 million in the second quarter of 2017.
Share-based compensation included in operating expenses was
RMB2.8 million (US$0.4 million) in the second quarter of 2018, as
compared to RMB4.2 million in the
second quarter of 2017. As the Company recognized share-based
compensation, net of estimated forfeitures, on a graded-vesting
basis over the vesting term of the awards, there was less
share-based compensation recognized in the second quarter of 2018
for share options granted prior to 2018.
Income from operations for the second quarter of 2018 was
RMB29.4 million (US$4.4 million), as compared to RMB25.0 million in the second quarter of 2017.
Operating margin for the second quarter of 2018 was 8.1%, as
compared to 6.4% in the second quarter of 2017, which was primarily
attributable to the decrease in revenues under the new accounting
standard.
Non-GAAP income from operations for the second quarter of 2018,
which excluded share-based compensation, was RMB32.8 million (US$5.0
million), as compared to RMB30.5
million in the second quarter of 2017. Non-GAAP operating
margin for the second quarter of 2018, which excluded share-based
compensation, was 9.1%, as compared to 7.7% in the second quarter
of 2017.
OTHER INCOME OR
LOSS
Other income or loss reflects interest income, interest expense,
foreign currency exchange gain or loss, income or loss from equity
investments, including impairments, and others, net[4].
Total net other income for the second quarter of 2018 was
RMB28.1 million (US$4.2 million), as compared to RMB3.4 million in the second quarter of 2017.
- Interest income for the second quarter of 2018 was RMB13.6 million (US$2.0
million), as compared to RMB13.5
million in the second quarter of 2017.
- Interest expense for the second quarter of 2018 decreased to
RMB3.4 million (US$0.5 million), from RMB6.4 million in the second quarter of 2017,
which was primarily due to the decrease in both the carrying amount
and the interest rates of the outstanding short-term bank loans in
the second quarter of 2018 as compared to that in 2017.
- Foreign currency exchange gain for the second quarter of 2018
was RMB16.2 million (US$2.5 million), as compared to foreign currency
exchange loss of RMB7.9 million in
the second quarter of 2017, which was mainly caused by the
depreciation of Renminbi against US dollars in the second quarter
of 2018 that generated exchange gain in Renminbi denominated
borrowings recorded in the Company's subsidiaries whose functional
currency is not Renminbi.
- Loss from equity investments, including impairments, for the
second quarter of 2018 was RMB0.4
million (US$0.07 million), as
compared to income from equity investments, including impairments,
of RMB1.1 million in the second
quarter of 2017.
- Others, net, for the second quarter of 2018 was RMB2.1 million (US$0.3
million), as compared to RMB3.1
million in the second quarter of 2017.
|
[4]
"Others, net" primarily consists of government subsidies and
litigation loss provisions.
|
NET INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net income attributable to Phoenix New Media Limited for the
second quarter of 2018 was RMB49.2
million (US$7.4 million), as
compared to RMB24.9 million in the
second quarter of 2017. Net margin for the second quarter of 2018
was 13.6%, as compared to 6.3% in the second quarter of 2017. Net
income per diluted ADS[5] in the second quarter of 2018
was RMB0.67 (US$0.10), as compared to RMB0.35 in the second quarter of 2017.
Non-GAAP net income attributable to Phoenix New Media Limited
for the second quarter of 2018, which excluded share-based
compensation and income or loss from equity investments, including
impairments, was RMB53.1 million
(US$8.0 million), as compared to
RMB29.3 million in the second quarter
of 2017. Non-GAAP net margin for the second quarter of 2018 was
14.6%, as compared to 7.4% in the second quarter of 2017. Non-GAAP
net income per diluted ADS in the second quarter of 2018 was
RMB0.73 (US$0.11), as compared to RMB0.41 in the second quarter of 2017.
For the second quarter of 2018, the Company's weighted average
number of ADSs used in the computation of diluted net income per
ADS was 73,118,221. As of June 30,
2018, the Company had a total of 581,908,702 ordinary shares
outstanding, or the equivalent of 72,738,588 ADSs.
|
[5]
"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 June 30, 2018, the Company's
cash and cash equivalents, term deposits and short term investments
and restricted cash were RMB1.32
billion (US$199.4 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
Based on the new accounting standard (ASC606), for the third
quarter of 2018, the Company expects its total revenues to be
between RMB376.1 million and
RMB391.1 million; net advertising
revenues are expected to be between RMB342.7
million and RMB352.7 million;
and paid services revenues are expected to be between RMB33.4 million and RMB38.4 million.
If the old accounting standard (ASC605) were to be used, for the
third quarter of 2018, the Company would expect its total revenues
to be between RMB413.2 million and
RMB428.2 million, its net advertising
revenues to be between RMB378.0
million and RMB388.0 million,
and its paid services revenues to be between RMB35.2 million and RMB40.2 million.
All of the above forecasts reflect the Company's current and
preliminary view on the market and operational conditions, which
are subject to change.
Conference Call Information
The Company will hold a conference call at 9:00 p.m. U.S. Eastern Time on August 14, 2018 (August
15, 2018 at 9:00 a.m.
Beijing/Hong Kong time) to discuss its second quarter
2018 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:
|
6098336
|
A replay of the call will be available through August 20, 2018 by using the dial-in numbers and
conference ID below:
|
International:
|
+61290034211
|
|
Mainland
China:
|
4006322162
|
|
Hong Kong:
|
+800963117
|
|
United
States:
|
+18554525696
|
|
Conference
ID:
|
6098336
|
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
http://ir.ifeng.com.
Use of Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in
accordance with the United States Generally Accepted Accounting
Principles ("GAAP"), Phoenix New Media Limited uses non-GAAP gross
profit, non-GAAP gross margin, non-GAAP income or loss from
operations, non-GAAP operating margin, non-GAAP net income or loss
attributable to Phoenix New Media Limited, non-GAAP net margin and
non-GAAP net income or loss per diluted ADS, each of which is a
non-GAAP financial measure. Non-GAAP gross profit is gross profit
excluding share-based compensation. Non-GAAP gross margin is
non-GAAP gross profit divided by total revenues. Non-GAAP income or
loss from operations is income or loss from operations excluding
share-based compensation. Non-GAAP operating margin is non-GAAP
income or loss from operations divided by total revenues. Non-GAAP
net income or loss attributable to Phoenix New Media Limited is net
income or loss attributable to Phoenix New Media Limited excluding
share-based compensation and income or loss from equity
investments, including impairments. Non-GAAP net margin is non-GAAP
net income or loss attributable to Phoenix New Media Limited
divided by total revenues. Non-GAAP net income or loss per diluted
ADS is non-GAAP net income or loss attributable to Phoenix New
Media Limited divided by weighted average number of diluted ADSs.
The Company believes that separate analysis and exclusion of the
aforementioned non-GAAP to GAAP reconciling items add clarity to
the constituent parts of its performance. The Company reviews these
non-GAAP financial measures together with the related GAAP
financial measures to obtain a better understanding of its
operating performance. It uses these non-GAAP financial measures
for planning, forecasting and measuring results against the
forecast. The Company believes that using these non-GAAP financial
measures to evaluate its business allows both management and
investors to assess the Company's performance against its
competitors and ultimately monitor its capacity to generate returns
for investors. The Company also believes that these non-GAAP
financial measures are useful supplemental information for
investors and analysts to assess its operating performance without
the effect of items like share-based compensation and income or
loss from equity 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 or
loss from operations and net income or loss attributable to Phoenix
New Media Limited for the period. In addition, because these
non-GAAP financial measures are not calculated in the same manner
by all companies, they may not be comparable to other similarly
titled measures used by other companies. In light of the foregoing
limitations, you should not consider these non-GAAP financial
measures in isolation from, or as an alternative to, the financial
measures prepared in accordance with GAAP.
Exchange Rate
This announcement contains translations of certain RMB amounts
into U.S. dollars ("USD") at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to USD were made at the rate of RMB6.6171 to US$1.00, the noon buying rate in effect on
June 29, 2018 in the H.10 statistical
release of the Federal Reserve Board. The Company makes no
representation that the RMB or USD amounts referred could be
converted into USD or RMB, as the case may be, at any particular
rate or at all. For analytical presentation, all percentages are
calculated using the numbers presented in the financial statements
contained in this earnings release.
About Phoenix New Media Limited
Phoenix New Media Limited (NYSE: FENG) is a leading new media
company providing premium content on an integrated Internet
platform, including PC and mobile, in China. Having originated from a leading global
Chinese language TV network based in Hong
Kong, Phoenix TV, the Company enables consumers to access
professional news and other quality information and share
user-generated content on the Internet through their PCs and mobile
devices. Phoenix New Media's platform includes its PC channel,
consisting of ifeng.com website, which comprises interest-based
verticals such as news, finance, fashion, military and digital
reading, and interactive services; its mobile channel, consisting
of mobile news applications, mobile video application, HTML5-based
mobile Internet websites, and mobile digital reading application;
and its operations with the telecom operators that provides content
and mobile value-added services.
Safe Harbor Statement
This announcement contains forward−looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward−looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as Phoenix New Media's strategic and
operational plans, contain forward−looking statements. Phoenix New
Media may also make written or oral forward−looking statements in
its periodic reports to the U.S. Securities and Exchange Commission
("SEC") on Forms 20−F and 6−K, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about Phoenix New Media's beliefs and expectations, are
forward−looking statements. Forward−looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward−looking statement, including but not limited to the
following: the Company's goals and strategies; the Company's future
business development, financial condition and results of
operations; the expected growth of online and mobile advertising,
online video and mobile paid services markets in China; the Company's reliance on online and
mobile advertising and MVAS for a majority of its total revenues;
the Company's expectations regarding demand for and market
acceptance of its services; the Company's expectations regarding
maintaining and strengthening its relationships with advertisers,
partners and customers; 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
Qing Liu
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,
|
|
2017
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
US$
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
362,862
|
|
236,580
|
|
35,753
|
|
Term deposits and
short term investments
|
737,657
|
|
776,050
|
|
117,279
|
|
Restricted
cash
|
336,700
|
|
307,000
|
|
46,395
|
|
Accounts receivable,
net
|
458,744
|
|
385,845
|
|
58,310
|
|
Amounts due from
related parties
|
187,214
|
|
199,034
|
|
30,079
|
|
Prepayment and other
current assets
|
57,458
|
|
58,910
|
|
8,903
|
|
Convertible loans due
from a related party
|
102,631
|
|
106,067
|
|
16,029
|
|
Total current
assets
|
2,243,266
|
|
2,069,486
|
|
312,748
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property and
equipment, net
|
64,454
|
|
80,715
|
|
12,198
|
|
Intangible assets,
net
|
6,712
|
|
5,852
|
|
884
|
|
Available-for-sale
investments
|
1,196,330
|
|
1,265,490
|
|
191,245
|
|
Equity investments,
net
|
15,342
|
|
12,477
|
|
1,886
|
|
Deferred tax
assets
|
60,460
|
|
79,609
|
|
12,031
|
|
Other non-current
assets
|
12,544
|
|
14,797
|
|
2,236
|
|
Total non-current
assets
|
1,355,842
|
|
1,458,940
|
|
220,480
|
|
Total
assets
|
3,599,108
|
|
3,528,426
|
|
533,228
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term
loans
|
330,000
|
|
308,047
|
|
46,553
|
|
Accounts
payable
|
262,657
|
|
239,898
|
|
36,254
|
|
Amounts due to related
parties
|
14,140
|
|
16,123
|
|
2,437
|
|
Advances from
customers
|
65,196
|
|
59,861
|
|
9,046
|
|
Taxes
payable
|
92,214
|
|
95,571
|
|
14,443
|
|
Salary and welfare
payable
|
134,471
|
|
94,803
|
|
14,327
|
|
Accrued expenses and
other current liabilities
|
173,253
|
|
120,216
|
|
18,167
|
|
Total current
liabilities
|
1,071,931
|
|
934,519
|
|
141,227
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Deferred tax
liabilities
|
1,312
|
|
1,312
|
|
198
|
|
Long-term
liabilities
|
24,714
|
|
25,321
|
|
3,827
|
|
Total non-current
liabilities
|
26,026
|
|
26,633
|
|
4,025
|
|
Total
liabilities
|
1,097,957
|
|
961,152
|
|
145,252
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Phoenix New Media
Limited shareholders' equity:
|
|
|
|
|
|
|
Class A ordinary
shares
|
17,180
|
|
17,471
|
|
2,640
|
|
Class B ordinary
shares
|
22,053
|
|
22,053
|
|
3,333
|
|
Additional paid-in
capital
|
1,587,575
|
|
1,596,689
|
|
241,297
|
|
Statutory
reserves
|
81,237
|
|
81,237
|
|
12,277
|
|
Retained
earnings
|
229,250
|
|
220,928
|
|
33,387
|
|
Accumulated other
comprehensive income
|
570,244
|
|
636,256
|
|
96,154
|
|
Total Phoenix New
Media Limited shareholders' equity
|
2,507,539
|
|
2,574,634
|
|
389,088
|
|
Noncontrolling
interests
|
(6,388)
|
|
(7,360)
|
|
(1,112)
|
|
Total
shareholders' equity
|
2,501,151
|
|
2,567,274
|
|
387,976
|
|
Total liabilities
and shareholders' equity
|
3,599,108
|
|
3,528,426
|
|
533,228
|
|
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 26, 2018.
|
|
Phoenix New Media
Limited
|
|
Condensed
Consolidated Statements of Comprehensive Income
|
|
(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,
|
|
2017
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising revenues
|
338,725
|
|
242,861
|
|
316,035
|
|
47,760
|
|
579,809
|
|
558,896
|
|
84,462
|
|
Paid service
revenues
|
54,541
|
|
41,551
|
|
46,426
|
|
7,016
|
|
107,936
|
|
87,977
|
|
13,295
|
|
Total
revenues
|
393,266
|
|
284,412
|
|
362,461
|
|
54,776
|
|
687,745
|
|
646,873
|
|
97,757
|
|
Cost of
revenues
|
(167,844)
|
|
(128,233)
|
|
(132,875)
|
|
(20,081)
|
|
(330,333)
|
|
(261,108)
|
|
(39,460)
|
|
Gross
profit
|
225,422
|
|
156,179
|
|
229,586
|
|
34,695
|
|
357,412
|
|
385,765
|
|
58,297
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses
|
(118,769)
|
|
(131,219)
|
|
(109,823)
|
|
(16,597)
|
|
(214,231)
|
|
(241,042)
|
|
(36,427)
|
|
General and
administrative expenses
|
(35,865)
|
|
(34,398)
|
|
(41,808)
|
|
(6,318)
|
|
(67,816)
|
|
(76,206)
|
|
(11,517)
|
|
Technology and
product development
expenses
|
(45,791)
|
|
(48,412)
|
|
(48,523)
|
|
(7,333)
|
|
(90,419)
|
|
(96,935)
|
|
(14,649)
|
|
Total operating
expenses
|
(200,425)
|
|
(214,029)
|
|
(200,154)
|
|
(30,248)
|
|
(372,466)
|
|
(414,183)
|
|
(62,593)
|
|
Income/(loss) from
operations
|
24,997
|
|
(57,850)
|
|
29,432
|
|
4,447
|
|
(15,054)
|
|
(28,418)
|
|
(4,296)
|
|
Other
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
13,493
|
|
12,938
|
|
13,550
|
|
2,048
|
|
26,151
|
|
26,488
|
|
4,003
|
|
Interest
expense
|
(6,426)
|
|
(4,633)
|
|
(3,389)
|
|
(512)
|
|
(12,775)
|
|
(8,022)
|
|
(1,212)
|
|
Foreign
currency exchange (loss)/gain
|
(7,890)
|
|
(15,131)
|
|
16,231
|
|
2,453
|
|
(10,201)
|
|
1,100
|
|
166
|
|
Income/(loss)
from equity investments,
including impairments
|
1,127
|
|
(2,430)
|
|
(435)
|
|
(66)
|
|
463
|
|
(2,865)
|
|
(433)
|
|
Others,
net
|
3,066
|
|
4,093
|
|
2,128
|
|
322
|
|
4,493
|
|
6,221
|
|
940
|
|
Income/(loss)
before tax
|
28,367
|
|
(63,013)
|
|
57,517
|
|
8,692
|
|
(6,923)
|
|
(5,496)
|
|
(832)
|
|
Income tax
(expense)/benefit
|
(4,215)
|
|
4,724
|
|
(8,498)
|
|
(1,284)
|
|
(1,874)
|
|
(3,774)
|
|
(570)
|
|
Net
income/(loss)
|
24,152
|
|
(58,289)
|
|
49,019
|
|
7,408
|
|
(8,797)
|
|
(9,270)
|
|
(1,402)
|
|
Net loss
attributable to noncontrolling interests
|
779
|
|
749
|
|
222
|
|
34
|
|
1,554
|
|
971
|
|
147
|
|
Net income/(loss)
attributable to Phoenix New
Media Limited
|
24,931
|
|
(57,540)
|
|
49,241
|
|
7,442
|
|
(7,243)
|
|
(8,299)
|
|
(1,255)
|
|
Net
income/(loss)
|
24,152
|
|
(58,289)
|
|
49,019
|
|
7,408
|
|
(8,797)
|
|
(9,270)
|
|
(1,402)
|
|
Other
comprehensive income, net of tax: fair
value remeasurement for
available-for-sale
investments*
|
256,588
|
|
46,364
|
|
5,287
|
|
799
|
|
265,479
|
|
51,651
|
|
7,806
|
|
Other
comprehensive loss, net of tax: foreign
currency translation
adjustment
|
(12,486)
|
|
(35,014)
|
|
49,376
|
|
7,462
|
|
(16,253)
|
|
14,362
|
|
2,170
|
|
Comprehensive
income/(loss)
|
268,254
|
|
(46,939)
|
|
103,682
|
|
15,669
|
|
240,429
|
|
56,743
|
|
8,574
|
|
Comprehensive
loss attributable to
noncontrolling interests
|
779
|
|
749
|
|
222
|
|
34
|
|
1,554
|
|
971
|
|
147
|
|
Comprehensive
income/(loss) attributable to
Phoenix New Media
Limited
|
269,033
|
|
(46,190)
|
|
103,904
|
|
15,703
|
|
241,983
|
|
57,714
|
|
8,721
|
|
Net income/(loss)
attributable to Phoenix New
Media Limited
|
24,931
|
|
(57,540)
|
|
49,241
|
|
7,442
|
|
(7,243)
|
|
(8,299)
|
|
(1,255)
|
|
Net
income/(loss) per Class A and Class B
ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.04
|
|
(0.10)
|
|
0.08
|
|
0.01
|
|
(0.01)
|
|
(0.01)
|
|
0.00
|
|
Diluted
|
0.04
|
|
(0.10)
|
|
0.08
|
|
0.01
|
|
(0.01)
|
|
(0.01)
|
|
0.00
|
|
Net
income/(loss) per ADS (1 ADS represents 8
Class A ordinary shares):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.35
|
|
(0.79)
|
|
0.68
|
|
0.10
|
|
(0.10)
|
|
(0.11)
|
|
(0.02)
|
|
Diluted
|
0.35
|
|
(0.79)
|
|
0.67
|
|
0.10
|
|
(0.10)
|
|
(0.11)
|
|
(0.02)
|
|
Weighted average
number of Class A and Class
B ordinary shares used in computing
net
income/(loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
573,948,891
|
|
579,228,111
|
|
580,976,381
|
|
580,976,381
|
|
573,943,337
|
|
580,102,974
|
|
580,102,974
|
|
Diluted
|
576,815,588
|
|
579,228,111
|
|
584,945,765
|
|
584,945,765
|
|
573,943,337
|
|
580,102,974
|
|
580,102,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
The Company adopted ASU 2016-1, Recognition and
Measurement of Financial Assets and Financial
Liabilities, beginning from January 1, 2018. After the
adoption of
this new accounting standard, the Company measures long-term equity
investments other than equity method investments at fair value
through earnings. As investments in
Particle meet the definition of debt securities, which are recorded
as available-for-sale investments, there is no impact by the
adoption of ASU 2016-1 on the available-for-
sale investments in Particle and the changes in their fair value
continue to be recorded in other comprehensive income.
|
|
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,
|
|
2017
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
338,725
|
|
242,861
|
|
316,035
|
|
47,760
|
|
579,809
|
|
558,896
|
|
84,462
|
|
Paid
services
|
54,541
|
|
41,551
|
|
46,426
|
|
7,016
|
|
107,936
|
|
87,977
|
|
13,295
|
|
Total
revenues
|
393,266
|
|
284,412
|
|
362,461
|
|
54,776
|
|
687,745
|
|
646,873
|
|
97,757
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
141,459
|
|
107,289
|
|
110,022
|
|
16,627
|
|
272,584
|
|
217,311
|
|
32,841
|
|
Paid
services
|
26,385
|
|
20,944
|
|
22,853
|
|
3,454
|
|
57,749
|
|
43,797
|
|
6,619
|
|
Total cost of
revenues
|
167,844
|
|
128,233
|
|
132,875
|
|
20,081
|
|
330,333
|
|
261,108
|
|
39,460
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
197,266
|
|
135,572
|
|
206,013
|
|
31,133
|
|
307,225
|
|
341,585
|
|
51,621
|
|
Paid
services
|
28,156
|
|
20,607
|
|
23,573
|
|
3,562
|
|
50,187
|
|
44,180
|
|
6,676
|
|
Total gross
profit
|
225,422
|
|
156,179
|
|
229,586
|
|
34,695
|
|
357,412
|
|
385,765
|
|
58,297
|
|
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,
|
|
2017
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue sharing
fees
|
15,052
|
|
8,617
|
|
11,460
|
|
1,732
|
|
32,372
|
|
20,077
|
|
3,034
|
|
Content and
operational costs
|
105,984
|
|
105,273
|
|
107,516
|
|
16,249
|
|
212,300
|
|
212,789
|
|
32,158
|
|
Bandwidth
costs
|
13,607
|
|
14,343
|
|
13,899
|
|
2,100
|
|
28,135
|
|
28,242
|
|
4,268
|
|
Sales taxes and
surcharges
|
33,201
|
|
-
|
|
-
|
|
-
|
|
57,526
|
|
-
|
|
-
|
|
Total cost of
revenues
|
167,844
|
|
128,233
|
|
132,875
|
|
20,081
|
|
330,333
|
|
261,108
|
|
39,460
|
|
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, 2017
|
|
Three Months Ended
March 31, 2018
|
|
Three Months Ended
June 30, 2018
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Gross
profit
|
225,422
|
|
1,224
|
(1)
|
226,646
|
|
156,179
|
|
205
|
(1)
|
156,384
|
|
229,586
|
|
634
|
(1)
|
230,220
|
|
Gross
margin
|
57.3%
|
|
|
|
57.6%
|
|
54.9%
|
|
|
|
55.0%
|
|
63.3%
|
|
|
|
63.5%
|
|
Income/(loss)
from
operations
|
24,997
|
|
5,460
|
(1)
|
30,457
|
|
(57,850)
|
|
3,450
|
(1)
|
(54,400)
|
|
29,432
|
|
3,390
|
(1)
|
32,822
|
|
Operating
margin
|
6.4%
|
|
|
|
7.7%
|
|
-20.3%
|
|
|
|
-19.1%
|
|
8.1%
|
|
|
|
9.1%
|
|
|
|
5,460
|
(1)
|
|
|
|
|
3,450
|
(1)
|
|
|
|
|
3,390
|
(1)
|
|
|
|
|
(1,127)
|
(2)
|
|
|
|
|
2,430
|
(2)
|
|
|
|
|
435
|
(2)
|
|
|
Net
income/(loss)
attributable to
Phoenix New
Media Limited
|
24,931
|
|
4,333
|
|
29,264
|
|
(57,540)
|
|
5,880
|
|
(51,660)
|
|
49,241
|
|
3,825
|
|
53,066
|
|
Net margin
|
6.3%
|
|
|
|
7.4%
|
|
-20.2%
|
|
|
|
-18.2%
|
|
13.6%
|
|
|
|
14.6%
|
|
Net
income/(loss)
per ADS--diluted
|
0.35
|
|
|
|
0.41
|
|
(0.79)
|
|
|
|
(0.71)
|
|
0.67
|
|
|
|
0.73
|
|
Weighted average
number of ADSs
used in computing
diluted net
income/(loss) per
ADS
|
72,101,949
|
|
|
|
72,101,949
|
|
72,403,514
|
|
|
|
72,403,514
|
|
73,118,221
|
|
|
|
73,118,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation
|
|
(2) Gain/(loss) from
equity investments, including impairments
|
|
|
Non-GAAP to GAAP
reconciling items have no income tax effect.
|
View original
content:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-unaudited-second-quarter-2018-financial-results-300696833.html
SOURCE Phoenix New Media Limited