BEIJING, April 1, 2019
/PRNewswire/ -- Phoenix New Media Limited ("Phoenix New Media",
"ifeng" or the "Company") (NYSE: FENG), a leading new media company
in China, today announced that
as part of its ongoing strategy to accelerate the development
of its real estate vertical, it will fully consolidate the
financial statements of Beijing Fenghuang Tianbo Network Technology
Co., Ltd. ("Tianbo") starting from April 1,
2019.
Tianbo is principally engaged in the operation of the real
estate channel and sales of real estate advertisements for the
Company's website, ifeng.com. Tianbo was previously a consolidated
subsidiary of the Company. In December
2014, the Company disposed of certain equity interest of,
and lost control over Tianbo, to allow Tianbo to pursue its
independent development. Since then, the Company has held 50% of
the equity interest in Tianbo and accounted for it using the equity
method of accounting. For illustrative purposes only, Tianbo's
unaudited revenues were approximately 13.4% of the Company's
revenues (which did not consolidate Tianbo's
revenues) in 2018. The Company recorded income from
equity method investment of RMB5.4
million due to its investment in Tianbo, which represented 50%
of Tianbo's net income, in 2018.
To further bolster the development of the Company's real estate
vertical and to create more synergies on Tianbo's new business
expansion as a second-hand real estate platform, shareholders of
Tianbo recently agreed to make certain revisions to the articles of
association of Tianbo to allow the Company to regain control over
Tianbo. As a result, the
Company will fully consolidate the financial statements of Tianbo
as a subsidiary starting from April 1, 2019, which may have
material impacts on the Company's consolidated financial statements
for periods ending after such date.
Mr. Shuang Liu, Chief Executive
Officer of ifeng, commented, "We saw Tianbo has grown tremendously
with over 70% CAGR (Compound Annual Growth Rate) of revenues in the
past 5 years. By leveraging our resources and brand influence, the
integration of Tianbo's service offerings will further solidify the
industry-leading position of our real estate vertical, especially
the growth potential of our second-hand housing business. Going
forward, we are confident that our enhanced real estate vertical
will become a partner of choice for realtors and property
developers in China. More
importantly, by offering coverage of all the essential aspects of
the housing market in China, our
real estate vertical will serve as an integral part of our strategy
to help our users cultivate a healthy, happy, and fulfilling
lifestyle."
About Phoenix New Media Limited
Phoenix New Media Limited (NYSE: FENG) is a leading new media
company providing premium content on an integrated Internet
platform, including PC and mobile, in China. Having originated
from a leading global Chinese language TV network based in
Hong Kong, Phoenix TV, the Company
enables consumers to access professional news and other quality
information and share user-generated content on the Internet
through their PCs and mobile devices. Phoenix New Media's
platform includes its PC channel, consisting of ifeng.com website,
which comprises interest-based verticals and interactive services;
its mobile channel, consisting of mobile news applications, mobile
video application, digital reading application and mobile Internet
website; and its operations with the telecom operators that
provides mobile value-added services.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as Phoenix New Media's strategic and
operational plans, contain forward-looking statements. Phoenix New
Media may also make written or oral forward-looking statements in
its periodic reports to the U.S. Securities and Exchange Commission
("SEC") on Forms 20-F and 6-K, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about Phoenix New Media's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: the Company's goals and strategies; the Company's future
business development, financial condition and results of
operations; the expected growth of the online and mobile
advertising, online video and mobile paid service markets in
China; the Company's reliance on
online advertising and MVAS 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 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 report on Form 20-F. All information provided in
this press release 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.
Jack Wang
Tel: +1 (646) 405-4883
Email: investorrelations@ifeng.com
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SOURCE Phoenix New Media Limited