Company News
"As the Internet media landscape in
Mr. Ya Li, president of
First Quarter 2016 Financial Results
REVENUES
Total revenues for the first quarter of 2016 were
Net advertising revenues (net of advertising agency service fees) for the first quarter of 2016 increased by 1.1% to
Paid service revenues for the first quarter of 2016 were
COST OF REVENUES
Cost of revenues for the first quarter of 2016 decreased by 16.8% to
GROSS PROFIT
Gross profit for the first quarter of 2016 was
To supplement the financial measures presented in accordance with the United States Generally Accepted Accounting Principles ("GAAP"), the Company has presented below certain non-GAAP financial measures which excluded the impact of certain non-cash or non-operating items as stated 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".
Non-GAAP gross margin, which excludes share-based compensation, for the first quarter of 2016 increased to 51.3% from 49.3% in the first quarter of 2015.
OPERATING EXPENSES AND INCOME FROM OPERATIONS
Total operating expenses for the first quarter of 2016 decreased by 4.2% to
Income from operations for the first quarter of 2016 was
Non-GAAP income from operations for the first quarter of 2016, which excludes share-based compensation, was
OTHER INCOME/(LOSS)
Other income/(loss) reflects interest income, net, foreign currency exchange gain or loss, loss/gain from equity investments, including impairments and others, net[3]. Total other income for the first quarter of 2016 was
NET (LOSS)/INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net income attributable to
Non-GAAP net income attributable to
As of
For the first quarter of 2016, the Company's weighted average number of ADSs used in the computation of diluted net income per ADS was 72,260,128. As of
Recent Updates
The Company announced today that Mr.
Business Outlook
For the second quarter of 2016, 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 use the dial-in numbers and conference ID below:
International: |
+6567135440 |
Mainland China: |
4001200654 |
Hong Kong: |
+85230186776 |
United States: |
+18456750438 |
Conference ID: |
2410154 |
A replay of the call will be available through
International: |
+61290034211 |
Mainland China: |
4006322162 |
Hong Kong: |
+85230512780 |
United States: |
+16462543697 |
Conference ID: |
2410154 |
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
Tel: +1 (646) 277-1215
Email: investorrelations@ifeng.com
[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. |
[3] "Others, net" primarily consists of government subsidies. |
[4] "ADS" means American Depositary Share of the Company. Each ADS represents eight Class A ordinary shares of the Company. |
Phoenix New Media Limited |
|||||
Condensed Consolidated Balance Sheets |
|||||
(Amounts in thousands) |
|||||
December 31, |
March 31, |
March 31, |
|||
2015 |
2016 |
2016 |
|||
RMB |
RMB |
US$ |
|||
Audited* |
Unaudited |
Unaudited |
|||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
310,669 |
225,788 |
35,017 |
||
Term deposits and short term investments |
769,681 |
740,560 |
114,851 |
||
Restricted cash |
125,000 |
125,000 |
19,386 |
||
Accounts receivable, net |
506,351 |
500,308 |
77,591 |
||
Amounts due from related parties |
124,677 |
200,161 |
31,042 |
||
Prepayment and other current assets |
58,574 |
66,692 |
10,343 |
||
Deferred tax assets |
35,963 |
38,829 |
6,022 |
||
Total current assets |
1,930,915 |
1,897,338 |
294,252 |
||
Non-current assets: |
|||||
Property and equipment, net |
80,537 |
77,226 |
11,977 |
||
Intangible assets, net |
12,404 |
11,088 |
1,720 |
||
Available-for-sale investments |
513,994 |
516,743 |
80,140 |
||
Equity investments, net |
11,610 |
11,585 |
1,797 |
||
Other non-current assets |
17,746 |
17,718 |
2,747 |
||
Total non-current assets |
636,291 |
634,360 |
98,381 |
||
Total assets |
2,567,206 |
2,531,698 |
392,633 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
Current liabilities: |
|||||
Short-term loans |
131,046 |
130,392 |
20,222 |
||
Accounts payable |
289,148 |
288,817 |
44,792 |
||
Amounts due to related parties |
19,368 |
18,504 |
2,870 |
||
Advances from customers |
15,239 |
20,077 |
3,114 |
||
Taxes payable |
93,120 |
65,279 |
10,124 |
||
Salary and welfare payable |
114,028 |
89,924 |
13,946 |
||
Accrued expenses and other current liabilities |
80,891 |
73,157 |
11,346 |
||
Total current liabilities |
742,840 |
686,150 |
106,414 |
||
Non-current liabilities: |
|||||
Deferred tax liabilities |
1,312 |
1,312 |
203 |
||
Long-term liabilities |
18,368 |
19,294 |
2,992 |
||
Total non-current liabilities |
19,680 |
20,606 |
3,195 |
||
Total liabilities |
762,520 |
706,756 |
109,609 |
||
Shareholders' equity: |
|||||
Phoenix New Media Limited shareholders' equity: |
|||||
Class A ordinary shares |
16,733 |
16,738 |
2,596 |
||
Class B ordinary shares |
22,053 |
22,053 |
3,420 |
||
Additional paid-in capital |
1,551,104 |
1,556,993 |
241,469 |
||
Statutory reserves |
70,311 |
70,311 |
10,904 |
||
Retained earnings |
122,093 |
133,711 |
20,737 |
||
Accumulated other comprehensive income |
23,341 |
26,587 |
4,123 |
||
Total Phoenix New Media Limited shareholders' equity |
1,805,635 |
1,826,393 |
283,249 |
||
Noncontrolling interests |
(949) |
(1,451) |
(225) |
||
Total shareholders' equity |
1,804,686 |
1,824,942 |
283,024 |
||
Total liabilities and shareholders' equity |
2,567,206 |
2,531,698 |
392,633 |
||
* 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 |
||||||||
March 31, |
December 31, |
March 31, |
March 31, |
|||||
2015 |
2015 |
2016 |
2016 |
|||||
RMB |
RMB |
RMB |
US$ |
|||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|||||
Revenues: |
||||||||
Net advertising revenues |
268,396 |
346,190 |
271,383 |
42,088 |
||||
Paid service revenues |
96,705 |
84,579 |
51,557 |
7,996 |
||||
Total revenues |
365,101 |
430,769 |
322,940 |
50,084 |
||||
Cost of revenues |
(190,134) |
(207,028) |
(158,168) |
(24,530) |
||||
Gross profit |
174,967 |
223,741 |
164,772 |
25,554 |
||||
Operating expenses: |
||||||||
Sales and marketing expenses |
(87,590) |
(82,756) |
(75,558) |
(11,718) |
||||
General and administrative expenses |
(39,059) |
(60,020) |
(45,043) |
(6,986) |
||||
Technology and product development expenses |
(41,376) |
(43,958) |
(40,358) |
(6,259) |
||||
Total operating expenses |
(168,025) |
(186,734) |
(160,959) |
(24,963) |
||||
Income from operations |
6,942 |
37,007 |
3,813 |
591 |
||||
Other income/(loss): |
||||||||
Interest income, net |
8,831 |
6,754 |
7,353 |
1,140 |
||||
Foreign currency exchange (loss)/gain |
(1,917) |
743 |
(1,864) |
(289) |
||||
(Loss)/gain from equity investments,including |
(20,019) |
(9,771) |
1,007 |
156 |
||||
Others, net |
(298) |
13,066 |
4,206 |
653 |
||||
(Loss)/income before tax |
(6,461) |
47,799 |
14,515 |
2,251 |
||||
Income tax expense |
(4,859) |
(7,158) |
(3,399) |
(527) |
||||
Net (loss)/income |
(11,320) |
40,641 |
11,116 |
1,724 |
||||
Net loss attributable to noncontrolling interests |
111 |
422 |
502 |
78 |
||||
Net (loss)/income attributable to Phoenix New |
(11,209) |
41,063 |
11,618 |
1,802 |
||||
Net (loss)/income |
(11,320) |
40,641 |
11,116 |
1,724 |
||||
Other comprehensive (loss)/income, net of tax: fair |
(3,302) |
13,376 |
5,314 |
824 |
||||
Other comprehensive income/(loss), net of tax: |
1,238 |
27,220 |
(2,068) |
(321) |
||||
Comprehensive (loss)/income |
(13,384) |
81,237 |
14,362 |
2,227 |
||||
Comprehensive loss attributable to noncontrolling |
111 |
422 |
502 |
78 |
||||
Comprehensive (loss)/income attributable to |
(13,273) |
81,659 |
14,864 |
2,305 |
||||
Net (loss)/income attributable to Phoenix New |
(11,209) |
41,063 |
11,618 |
1,802 |
||||
Net (loss)/income per Class A and Class B ordinary |
||||||||
Basic |
(0.02) |
0.07 |
0.02 |
0.003 |
||||
Diluted |
(0.02) |
0.07 |
0.02 |
0.003 |
||||
Net (loss)/income per ADS (1 ADS represents 8 |
||||||||
Basic |
(0.16) |
0.57 |
0.16 |
0.03 |
||||
Diluted |
(0.16) |
0.57 |
0.16 |
0.02 |
||||
Weighted average number of Class A and Class B |
||||||||
Basic |
571,848,522 |
572,175,288 |
572,996,971 |
572,996,971 |
||||
Diluted |
571,848,522 |
578,625,484 |
578,081,026 |
578,081,026 |
||||
Phoenix New Media Limited |
||||||||
Condensed Segments Information |
||||||||
(Amounts in thousands) |
||||||||
Three Months Ended |
||||||||
March 31, |
December 31, |
March 31, |
March 31, |
|||||
2015 |
2015 |
2016 |
2016 |
|||||
RMB |
RMB |
RMB |
US$ |
|||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|||||
Revenues: |
||||||||
Net advertising service |
268,396 |
346,190 |
271,383 |
42,088 |
||||
Paid service |
96,705 |
84,579 |
51,557 |
7,996 |
||||
Total revenues |
365,101 |
430,769 |
322,940 |
50,084 |
||||
Cost of revenues |
||||||||
Net advertising service |
127,822 |
143,144 |
126,032 |
19,546 |
||||
Paid service |
62,312 |
63,884 |
32,136 |
4,984 |
||||
Total cost of revenues |
190,134 |
207,028 |
158,168 |
24,530 |
||||
Gross profit |
||||||||
Net advertising service |
140,574 |
203,046 |
145,351 |
22,542 |
||||
Paid service |
34,393 |
20,695 |
19,421 |
3,012 |
||||
Total gross profit |
174,967 |
223,741 |
164,772 |
25,554 |
||||
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, 2015 |
Three Months Ended December 31, 2015 |
Three Months Ended March 31, 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 |
174,967 |
4,993 |
(1) |
179,960 |
223,741 |
(7,289) |
(1) |
216,452 |
164,772 |
851 |
(1) |
165,623 |
|||||
Gross margin |
47.9% |
49.3% |
51.9% |
50.2% |
51.0% |
51.3% |
|||||||||||
Income from operations |
6,942 |
14,805 |
(1) |
21,747 |
37,007 |
(5,957) |
(1) |
31,050 |
3,813 |
4,081 |
(1) |
7,894 |
|||||
Operating margin |
1.9% |
6.0% |
8.6% |
7.2% |
1.2% |
2.4% |
|||||||||||
14,805 |
(1) |
(5,957) |
(1) |
4,081 |
(1) |
||||||||||||
20,019 |
(2) |
9,771 |
(2) |
(1,007) |
(2) |
||||||||||||
Net (loss)/income attributable to |
(11,209) |
34,824 |
23,615 |
41,063 |
3,814 |
44,877 |
11,618 |
3,074 |
14,692 |
||||||||
Net margin |
(3.1%) |
6.5% |
9.5% |
10.4% |
3.6% |
4.5% |
|||||||||||
Net (loss)/income per ADS—diluted |
(0.16) |
0.32 |
0.57 |
0.62 |
0.16 |
0.20 |
|||||||||||
Weighted average number of ADSs |
71,481,065 |
71,481,065 |
72,328,186 |
72,328,186 |
72,260,128 |
72,260,128 |
|||||||||||
(1) Share-based compensation |
|||||||||||||||||
(2) Loss/(gain) from equity investments including impairments |
|||||||||||||||||
Details of cost of revenues are as follows: |
|||||||||||||||||
Three Months Ended |
|||||||||||||||||
March 31, |
December 31, |
March 31, |
March 31, |
||||||||||||||
2015 |
2015 |
2016 |
2016 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
||||||||||||||
(Amounts in thousands) |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|||||||||||||
Revenue sharing fees |
51,467 |
46,603 |
18,854 |
2,924 |
|||||||||||||
Content and operational costs |
90,761 |
106,585 |
95,450 |
14,803 |
|||||||||||||
Bandwidth costs |
21,540 |
19,662 |
17,346 |
2,690 |
|||||||||||||
Sales taxes and surcharges |
26,366 |
34,178 |
26,518 |
4,113 |
|||||||||||||
Total cost of revenues |
190,134 |
207,028 |
158,168 |
24,530 |
|||||||||||||
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