Company News
"The first quarter was marked by further strides in the evolution of our company as an integrated news and information gateway that continues to redefine how users find and consume information anywhere, anytime and on any Internet-enabled device," stated Mr.
Mr. Ya Li, president of
First Quarter 2015 Financial Results
REVENUES
Total revenues for the first quarter of 2015 increased by 2.2% to
Net advertising revenues (net of advertising agency service fees) for the first quarter of 2015 increased by 14.2% to
Paid service revenues for the first quarter of 2015 decreased by 20.9% to
[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 AND GROSS PROFIT
Cost of revenues for the first quarter of 2015 increased by 9.4% to
Gross profit for the first quarter of 2015 was
[3] 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". |
OPERATING EXPENSES AND INCOME FROM OPERATIONS
Total operating expenses for the first quarter of 2015 increased by 19.8% to
Excluding share-based compensation, adjusted income from operations for the first quarter of 2015 was
Excluding share-based compensation, the adjusted operating margin for the first quarter of 2015 was 6.0%, compared to 15.1% in the first quarter of 2014, while operating margin for the first quarter of 2015 was 1.9% primarily due to the decrease in paid service revenues, the seasonal impact on advertising revenues associated with the late
OTHER INCOME/(LOSS)
Other income/(loss) reflects loss from equity investments, gain on disposition of subsidiaries and acquisition of equity investments, interest income, foreign currency exchange gain or loss and others, net. Loss from equity investments for the first quarter of 2015 increased to
NET INCOME/(LOSS) ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
We have made a few investments during the year of 2014. These investments have created two new non-operating items as loss from equity investments and gain on disposition of subsidiaries and acquisition of equity investments on our statement of comprehensive income.
Adjusted net income attributable to
Net loss attributable to
As of
For the first quarter of 2015, the Company's weighted average number of ADSs used in the computation of diluted net loss per ADS was 72,948,956. As of
[4] "ADS" means American Depositary Share of the Company. Each ADS represents eight Class A ordinary shares of the Company. |
Business Outlook
For the second quarter of 2015, the Company expects its total revenues to be between
Conference Call Information
The Company will hold a conference call at
To participate in the call, please dial the following numbers:
International: |
+6567239385 |
Mainland China: |
4001200654 |
Hong Kong: |
+85230186776 |
United States: |
+18456750438 |
Conference ID: |
37909386 |
A replay of the call will be available through
International: |
+61290034211 |
Mainland China: |
4006322162 |
Hong Kong: |
+85230512780 |
United States: |
+16462543697 |
Conference ID: |
37909386 |
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"),
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
About Phoenix New Media Limited
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
For investor and media inquiries please contact:
Email: investorrelations@ifeng.com
In
In
Tel: +1 (646) 277-1276
Email: investorrelations@ifeng.com
Phoenix New Media Limited |
|||||
Condensed Consolidated Balance Sheets |
|||||
(Amounts in thousands) |
|||||
December 31, |
March 31, |
March 31, |
|||
2014 |
2015 |
2015 |
|||
RMB |
RMB |
US$ |
|||
Audited* |
Unaudited |
Unaudited |
|||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
1,285,847 |
683,455 |
110,252 |
||
Term deposits and short term investments |
40,000 |
553,992 |
89,368 |
||
Restricted cash |
- |
30,711 |
4,954 |
||
Accounts receivable, net |
493,569 |
505,288 |
81,511 |
||
Amounts due from related parties |
176,224 |
120,786 |
19,485 |
||
Prepayment and other current assets |
42,703 |
49,220 |
7,941 |
||
Deferred tax assets |
24,565 |
25,815 |
4,164 |
||
Total current assets |
2,062,908 |
1,969,267 |
317,675 |
||
Non-current assets: |
|||||
Property and equipment, net |
89,694 |
88,221 |
14,231 |
||
Intangible assets, net |
14,913 |
16,814 |
2,712 |
||
Available-for-sale investment |
77,093 |
73,791 |
11,904 |
||
Equity investments |
68,880 |
59,088 |
9,532 |
||
Other non-current assets |
13,342 |
13,660 |
2,204 |
||
Total non-current assets |
263,922 |
251,574 |
40,583 |
||
Total assets |
2,326,830 |
2,220,841 |
358,258 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
Current liabilities: |
|||||
Accounts payable |
271,599 |
284,574 |
45,906 |
||
Amounts due to related parties |
22,489 |
13,586 |
2,192 |
||
Advances from customers |
17,587 |
18,914 |
3,051 |
||
Taxes payable |
88,938 |
76,647 |
12,364 |
||
Salary and welfare payable |
105,073 |
78,553 |
12,672 |
||
Accrued expenses and other current liabilities |
86,307 |
76,690 |
12,371 |
||
Total current liabilities |
591,993 |
548,964 |
88,556 |
||
Non-current liabilities: |
|||||
Deferred tax liabilities |
1,312 |
1,312 |
212 |
||
Long-term liabilities |
16,867 |
17,146 |
2,766 |
||
Total non-current liabilities |
18,179 |
18,458 |
2,978 |
||
Total liabilities |
610,172 |
567,422 |
91,534 |
||
Shareholders' equity: |
|||||
Phoenix New Media Limited shareholders' equity: |
|||||
Class A ordinary shares |
17,278 |
16,531 |
2,667 |
||
Class B ordinary shares |
22,053 |
22,053 |
3,558 |
||
Additional paid-in capital |
1,587,227 |
1,524,490 |
245,925 |
||
Treasury stock |
(13,379) |
- |
- |
||
Statutory reserves |
65,968 |
65,968 |
10,642 |
||
Retained earnings |
52,852 |
41,643 |
6,718 |
||
Accumulated other comprehensive loss |
(15,341) |
(17,405) |
(2,808) |
||
Total Phoenix New Media Limited shareholders' equity |
1,716,658 |
1,653,280 |
266,702 |
||
Noncontrolling interests |
- |
139 |
22 |
||
Total shareholders' equity |
1,716,658 |
1,653,419 |
266,724 |
||
Total liabilities and shareholders' equity |
2,326,830 |
2,220,841 |
358,258 |
||
* Derived from audited financial statements included in the Company's Form 20-F dated April 30, 2015. |
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 |
|||||||
March 31, |
December 31, |
March 31, |
March 31, |
||||
2014 |
2014 |
2015 |
2015 |
||||
RMB |
RMB |
RMB |
US$ |
||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
||||
Revenues: |
|||||||
Net advertising revenues |
234,925 |
338,509 |
268,396 |
43,297 |
|||
Paid service revenues |
122,224 |
99,556 |
96,705 |
15,600 |
|||
Total revenues |
357,149 |
438,065 |
365,101 |
58,897 |
|||
Cost of revenues |
(173,871) |
(207,371) |
(190,134) |
(30,672) |
|||
Gross profit |
183,278 |
230,694 |
174,967 |
28,225 |
|||
Operating expenses: |
|||||||
Sales and marketing expenses |
(76,733) |
(100,680) |
(87,590) |
(14,130) |
|||
General and administrative expenses |
(32,702) |
(41,747) |
(39,059) |
(6,301) |
|||
Technology and product development expenses |
(30,787) |
(44,819) |
(41,376) |
(6,675) |
|||
Total operating expenses |
(140,222) |
(187,246) |
(168,025) |
(27,106) |
|||
Income from operations |
43,056 |
43,448 |
6,942 |
1,119 |
|||
Other income/(loss): |
|||||||
Interest income |
12,025 |
9,465 |
8,831 |
1,425 |
|||
Foreign currency exchange (loss)/gain |
(6,868) |
901 |
(1,917) |
(309) |
|||
Gain on disposition of subsidiaries and acquisition |
17,693 |
7,309 |
- |
- |
|||
Loss from equity investments |
(1,541) |
(7,116) |
(20,019) |
(3,229) |
|||
Others, net |
5,790 |
3,213 |
(298) |
(48) |
|||
Income before tax |
70,155 |
57,220 |
(6,461) |
(1,042) |
|||
Income tax expense |
(8,597) |
(10,294) |
(4,859) |
(784) |
|||
Net income/(loss) |
61,558 |
46,926 |
(11,320) |
(1,826) |
|||
Net loss/(income) attributable to noncontrolling |
603 |
(19) |
111 |
18 |
|||
Net income/(loss) attributable to Phoenix New Media Limited |
62,161 |
46,907 |
(11,209) |
(1,808) |
|||
Net income/(loss) |
61,558 |
46,926 |
(11,320) |
(1,826) |
|||
Other comprehensive income/(loss), net of tax: fair |
- |
40,283 |
(3,302) |
(533) |
|||
Other comprehensive income/(loss), net of tax: |
7,151 |
(1,844) |
1,238 |
200 |
|||
Comprehensive income/(loss) |
68,709 |
85,365 |
(13,384) |
(2,159) |
|||
Comprehensive loss/(income) attributable to |
603 |
(19) |
111 |
18 |
|||
Comprehensive income/(loss) attributable to |
69,312 |
85,346 |
(13,273) |
(2,141) |
|||
Net income/(loss) attributable to Phoenix New |
62,161 |
46,907 |
(11,209) |
(1,808) |
|||
Net income/(loss) per Class A and Class B ordinary |
|||||||
Basic |
0.10 |
0.08 |
(0.02) |
0.00 |
|||
Diluted |
0.10 |
0.08 |
(0.02) |
0.00 |
|||
Net income/(loss) per ADS (1 ADS represents 8 |
|||||||
Basic |
0.83 |
0.64 |
(0.16) |
(0.03) |
|||
Diluted |
0.80 |
0.63 |
(0.16) |
(0.03) |
|||
Weighted average number of Class A and Class B |
|||||||
Basic |
601,939,197 |
582,018,815 |
571,848,522 |
571,848,522 |
|||
Diluted |
622,073,409 |
595,974,339 |
583,591,651 |
583,591,651 |
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 March 31, 2014 |
Three Months Ended December 31, 2014 |
Three Months Ended March 31, 2015 |
|||||||||||||||||
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 |
183,278 |
2,971 |
(1) |
186,249 |
230,694 |
5,225 |
(1) |
235,919 |
174,967 |
4,993 |
(1) |
179,960 |
|||||||
Gross margin |
51.3% |
52.1% |
52.7% |
53.9% |
47.9% |
49.3% |
|||||||||||||
Income from operations |
43,056 |
10,894 |
(1) |
53,950 |
43,448 |
15,972 |
(1) |
59,420 |
6,942 |
14,805 |
(1) |
21,747 |
|||||||
Operating margin |
12.1% |
15.1% |
9.9% |
13.6% |
1.9% |
6.0% |
|||||||||||||
10,894 |
(1) |
15,972 |
(1) |
||||||||||||||||
1,541 |
(2) |
7,116 |
(2) |
14,805 |
(1) |
||||||||||||||
(17,693) |
(3) |
(7,309) |
(3) |
20,019 |
(2) |
||||||||||||||
Net income/(loss) attributable to |
62,161 |
(5,258) |
56,903 |
46,907 |
15,779 |
62,686 |
(11,209) |
34,824 |
23,615 |
||||||||||
Net margin |
17.4% |
15.9% |
10.7% |
14.3% |
-3.1% |
6.5% |
|||||||||||||
Net income/(loss) per ADS—diluted |
0.80 |
0.73 |
0.63 |
0.84 |
(0.16) |
0.32 |
|||||||||||||
Weighted average number of ADSs |
77,759,176 |
77,759,176 |
74,496,792 |
74,496,792 |
72,948,956 |
72,948,956 |
|||||||||||||
(1) Excludes share-based compensation |
|||||||||||||||||||
(2) Excludes loss from equity investments |
|||||||||||||||||||
(3) Excludes gain on disposition of subsidiaries and acquisition of equity |
Details of cost of revenues are as follows: |
||||||||||||
Three Months Ended |
||||||||||||
March 31, |
December 31, |
March 31, |
March 31, |
|||||||||
2014 |
2014 |
2015 |
2015 |
|||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||
(Amounts in thousands) |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
||||||||
Revenue sharing fees |
53,680 |
35,304 |
51,467 |
8,302 |
||||||||
Content and operational costs |
74,079 |
114,400 |
90,761 |
14,642 |
||||||||
Bandwidth costs |
20,791 |
21,738 |
21,540 |
3,475 |
||||||||
Sales taxes and surcharges |
25,321 |
35,929 |
26,366 |
4,253 |
||||||||
Total cost of revenues |
173,871 |
207,371 |
190,134 |
30,672 |
Phoenix New Media Limited |
||||||||||||||
Condensed Segments Information |
||||||||||||||
(Amounts in thousands) |
||||||||||||||
Three Months Ended |
||||||||||||||
March 31, |
December 31, |
March 31, |
March 31, |
|||||||||||
2014 |
2014 |
2015 |
2015 |
|||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|||||||||||
Revenues: |
||||||||||||||
Net advertising service |
234,925 |
338,509 |
268,396 |
43,297 |
||||||||||
Paid service |
122,224 |
99,556 |
96,705 |
15,600 |
||||||||||
Total revenues |
357,149 |
438,065 |
365,101 |
58,897 |
||||||||||
Cost of revenues |
||||||||||||||
Net advertising service |
106,726 |
150,515 |
127,822 |
20,620 |
||||||||||
Paid service |
67,145 |
56,856 |
62,312 |
10,052 |
||||||||||
Total cost of revenues |
173,871 |
207,371 |
190,134 |
30,672 |
||||||||||
Gross profit |
||||||||||||||
Net advertising service |
128,199 |
187,994 |
140,574 |
22,677 |
||||||||||
Paid service |
55,079 |
42,700 |
34,393 |
5,548 |
||||||||||
Total gross profit |
183,278 |
230,694 |
174,967 |
28,225 |
||||||||||
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