Company News
Fourth Quarter and Fiscal Year 2013 Highlights
- Total revenues for the fourth quarter of 2013 increased by 32.4% year-over-year to
RMB400.1 million (US$66.1 million ), driven by a 36.7% increase in net advertising revenues, and a 24.9% increase in paid service revenues. - Net income attributable to
Phoenix New Media Limited for the fourth quarter of 2013 increased by 197.4% year-over-year toRMB82.9 million (US$13.7 million ). Adjusted net income attributable to Phoenix New Media Limited[1] for the fourth quarter of 2013 increased by 257.0% year-over-year toRMB92.0 million (US$15.2 million ). - Net income per diluted ADS[2] for the fourth quarter of 2013 increased by 203.2% year-over-year to
RMB1.07 (US$0.18) . Adjusted net income per diluted ADS for the fourth quarter of 2013 increased by 263.9% year-over-year toRMB1.19 (US$0.20) . - Total revenues for fiscal year 2013 increased by 28.2% year-over-year to
RMB1.4 billion (US$235.3 million ), primarily driven by a 41.6% increase in net advertising revenues. - Net income attributable to
Phoenix New Media for fiscal year 2013 increased by 160.4% year-over-year toRMB279.6 million (US$46.2 million ).
Mr.
"Serving in my newly-assumed dual role as both CEO of ifeng and COO of Phoenix Satellite TV, I will lead our effort in strategizing, overseeing and allocating resources to implement the convergence of TV and new media businesses, allowing us to further capitalize on the synergies and economies of scale inherent in our expanding media platform. We are confident that we are well-positioned and well-equipped to expand our user-base and meet our audience's dynamic needs as we solidify our cross-platform media leadership in the Chinese market in 2014 and beyond."
Fourth Quarter 2013 Financial Results
REVENUES
Total revenues for the fourth quarter of 2013 increased by 32.4% to
Net advertising revenues (net of advertising agency service fees), for the fourth quarter of 2013 increased by 36.7% to
Paid service revenues[3] for the fourth quarter of 2013 increased by 24.9% to
COST OF REVENUES AND GROSS PROFIT
Cost of revenues for the fourth quarter of 2013 increased by 11.9% to
Gross profit for the fourth quarter of 2013 increased by 57.1% to
OPERATING EXPENSES AND INCOME FROM OPERATIONS
Total operating expenses for the fourth quarter of 2013 increased by 22.1% to
Income from operations for the fourth quarter of 2013 increased significantly to
Adjusted income from operations, which excludes share-based compensation expenses, for the fourth quarter of 2013 increased significantly to
FOREIGN
Foreign currency exchange gain for the fourth quarter of 2013 was
NET INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net income attributable to
Adjusted net income attributable to
For the fourth quarter of 2013, the Company's weighted average number of ADSs used in the computation of diluted net income per ADS was 77,524,623.
Fiscal Year 2013 Financial Results
REVENUES
Total revenues for fiscal year 2013 increased by 28.2% to
Net advertising revenues (net of advertising agency service fees), for fiscal year 2013 increased by 41.6% to
Paid service revenues for fiscal year 2013 increased by 12.0% to
COST OF REVENUES AND GROSS PROFIT
Cost of revenues for fiscal year 2013 increased by 10.3% to
Gross profit for fiscal year 2013 increased by 51.8% to
Gross margin for fiscal year 2013 increased to 51.1% from 43.2% in fiscal year 2012, mainly due to the increased revenue contributions from advertising. Adjusted gross margin, which excludes the impact of share-based compensation expenses, increased to 51.6% for fiscal year 2013 from 43.3% in fiscal year 2012.
OPERATING EXPENSES AND INCOME FROM OPERATIONS
Total operating expenses for fiscal year 2013 increased by 21.5% to
Income from operations for fiscal year 2013 increased by 193.2% to
Adjusted income from operations, which excludes the impact of share-based compensation expenses, for fiscal year 2013 increased by 189.8% to
NET INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net income attributable to
Adjusted net income attributable to
Business Outlook
For the first quarter of 2014, 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 |
China: |
4001200654 |
Hong Kong: |
+85230512745 |
United States: |
+18456750438 |
Conference ID: |
27502646 |
A replay of the call will be available through
International: |
+61281990299 |
China: |
4001200932 |
Hong Kong: |
+85230512780 |
United States: |
+16462543697 |
Conference ID: |
27502646 |
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
[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] "ADS" means American Depositary Share of the Company. Each ADS represents eight Class A ordinary shares of the Company. |
[3] In 2013, the Company recast paid service revenues classification from previously mobile Internet value-added services, or MIVAS, and video value-added services, or VVAS, into currently mobile value-added services, or MVAS, and games and others. |
[4] 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. |
[5] Games and others includes web-based games, content sales, and other online and mobile paid services through the Company's own platforms. |
For investor and media inquiries please contact:
Email: investorrelations@ifeng.com
Tel: +1 (646) 405-4883
Email: investorrelations@ifeng.com
Phoenix New Media Limited |
|||||
Condensed Consolidated Balance Sheets |
|||||
(Amounts in thousands) |
|||||
December 31, |
December 31, |
December 31, |
|||
2012 |
2013 |
2013 |
|||
RMB |
RMB |
US$ |
|||
Audited* |
Unaudited |
Unaudited |
|||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
916,169 |
1,308,138 |
216,089 |
||
Restricted cash |
- |
10,000 |
1,652 |
||
Term deposits |
235,000 |
93,672 |
15,474 |
||
Accounts receivable, net |
280,987 |
353,379 |
58,374 |
||
Amounts due from related parties |
63,811 |
125,158 |
20,675 |
||
Prepayment and other current assets |
42,557 |
27,911 |
4,610 |
||
Deferred tax assets |
17,504 |
22,779 |
3,763 |
||
Total current assets |
1,556,028 |
1,941,037 |
320,637 |
||
Non-current assets: |
|||||
Property and equipment, net |
102,547 |
95,126 |
15,714 |
||
Intangible assets, net |
9,488 |
7,919 |
1,308 |
||
Other non-current assets |
13,104 |
12,678 |
2,094 |
||
Total non-current assets |
125,139 |
115,723 |
19,116 |
||
Total assets |
1,681,167 |
2,056,760 |
339,753 |
||
LIABILITIES AND SHAREHOLDERS' |
|||||
Current liabilities: |
|||||
Accounts payable |
154,637 |
218,604 |
36,111 |
||
Amounts due to related parties |
1,806 |
21,034 |
3,475 |
||
Advances from customers |
5,884 |
10,732 |
1,773 |
||
Taxes payable |
40,156 |
58,140 |
9,604 |
||
Salary and welfare payable |
63,631 |
98,831 |
16,326 |
||
Accrued expenses and other current liabilities |
40,717 |
62,153 |
10,267 |
||
Total current liabilities |
306,831 |
469,494 |
77,556 |
||
Long-term liabilities |
7,996 |
12,231 |
2,020 |
||
Total liabilities |
314,827 |
481,725 |
79,576 |
||
Shareholders' equity |
|||||
Phoenix New Media Limited shareholders' |
|||||
Class A ordinary shares |
19,575 |
18,530 |
3,061 |
||
Class B ordinary shares |
22,053 |
22,053 |
3,643 |
||
Additional paid-in capital |
1,785,597 |
1,734,993 |
286,600 |
||
Treasury stock |
(112) |
- |
- |
||
Statutory reserves |
31,985 |
50,330 |
8,314 |
||
Accumulated deficit |
(455,810) |
(194,601) |
(32,146) |
||
Accumulated other comprehensive loss |
(36,948) |
(60,127) |
(9,932) |
||
Total Phoenix New Media Limited |
1,366,340 |
1,571,178 |
259,540 |
||
Noncontrolling interests |
- |
3,857 |
637 |
||
Total shareholders' equity |
1,366,340 |
1,575,035 |
260,177 |
||
Total liabilities and shareholders' equity |
1,681,167 |
2,056,760 |
339,753 |
||
* Derived from audited financial statements included in the Company's Form 20-F dated April 26, 2013.
|
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 |
Twelve Months Ended |
||||||||||||
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
December 31, |
December 31, |
|||||||
2012 |
2013 |
2013 |
2013 |
2012 |
2013 |
2013 |
|||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited* |
Unaudited |
Unaudited |
|||||||
Revenues: |
|||||||||||||
Net advertising revenues |
193,138 |
223,831 |
263,940 |
43,600 |
610,160 |
863,737 |
142,679 |
||||||
Paid service revenues |
109,056 |
154,910 |
136,169 |
22,494 |
500,844 |
560,738 |
92,627 |
||||||
Total revenues |
302,194 |
378,741 |
400,109 |
66,094 |
1,111,004 |
1,424,475 |
235,306 |
||||||
Cost of revenues |
(165,075) |
(194,434) |
(184,645) |
(30,501) |
(631,299) |
(696,355) |
(115,030) |
||||||
Gross profit |
137,119 |
184,307 |
215,464 |
35,593 |
479,705 |
728,120 |
120,276 |
||||||
Operating expenses: |
|||||||||||||
Sales and marketing expenses |
(66,265) |
(65,839) |
(88,062) |
(14,546) |
(197,038) |
(273,399) |
(45,162) |
||||||
General and administrative |
(28,732) |
(16,604) |
(27,093) |
(4,475) |
(106,736) |
(97,849) |
(16,164) |
||||||
Technology and product |
(23,417) |
(27,224) |
(29,377) |
(4,853) |
(91,292) |
(108,683) |
(17,953) |
||||||
Total operating expenses |
(118,414) |
(109,667) |
(144,532) |
(23,874) |
(395,066) |
(479,931) |
(79,279) |
||||||
Income from operations |
18,705 |
74,640 |
70,932 |
11,719 |
84,639 |
248,189 |
40,997 |
||||||
Other income: |
|||||||||||||
Interest income |
7,403 |
8,860 |
9,522 |
1,573 |
32,869 |
32,775 |
5,414 |
||||||
Foreign currency exchange gain |
6,589 |
3,008 |
4,537 |
749 |
1,897 |
19,687 |
3,252 |
||||||
Others, net |
423 |
2,769 |
7,537 |
1,245 |
4,931 |
14,960 |
2,471 |
||||||
Income before tax |
33,120 |
89,277 |
92,528 |
15,286 |
124,336 |
315,611 |
52,134 |
||||||
Income tax expense |
(5,258) |
(9,235) |
(11,192) |
(1,849) |
(16,977) |
(37,588) |
(6,209) |
||||||
Net income |
27,862 |
80,042 |
81,336 |
13,437 |
107,359 |
278,023 |
45,925 |
||||||
Net loss attributable to |
- |
- |
1,531 |
253 |
- |
1,531 |
253 |
||||||
Net income attributable to |
27,862 |
80,042 |
82,867 |
13,690 |
107,359 |
279,554 |
46,178 |
||||||
Net income |
27,862 |
80,042 |
81,336 |
13,437 |
107,359 |
278,023 |
45,925 |
||||||
Other comprehensive loss, net of |
(8,305) |
(3,722) |
(5,598) |
(925) |
(1,979) |
(23,179) |
(3,829) |
||||||
Comprehensive income |
19,557 |
76,320 |
75,738 |
12,512 |
105,380 |
254,844 |
42,096 |
||||||
Comprehensive loss attributable |
- |
- |
1,531 |
253 |
- |
1,531 |
253 |
||||||
Comprehensive income |
19,557 |
76,320 |
77,269 |
12,765 |
105,380 |
256,375 |
42,349 |
||||||
Net income attributable to |
27,862 |
80,042 |
82,867 |
13,690 |
107,359 |
279,554 |
46,178 |
||||||
Net income per Class A and Class B |
|||||||||||||
Basic |
0.05 |
0.13 |
0.14 |
0.02 |
0.17 |
0.46 |
0.08 |
||||||
Diluted |
0.04 |
0.13 |
0.13 |
0.02 |
0.17 |
0.45 |
0.07 |
||||||
Net income per ADS (1 ADS represents 8 Class A ordinary shares): |
|||||||||||||
Basic |
0.36 |
1.07 |
1.10 |
0.18 |
1.38 |
3.69 |
0.61 |
||||||
Diluted |
0.35 |
1.04 |
1.07 |
0.18 |
1.33 |
3.59 |
0.59 |
||||||
Weighted average number of Class A and Class B ordinary shares used in computing net income per share: |
|||||||||||||
Basic |
616,690,252 |
599,683,858 |
601,035,630 |
601,035,630 |
624,010,270 |
605,988,397 |
605,988,397 |
||||||
Diluted |
632,217,567 |
617,788,630 |
620,196,981 |
620,196,981 |
643,748,146 |
622,420,459 |
622,420,459 |
||||||
* Derived from audited financial statements included in the Company's Form 20-F dated April 26, 2013. |
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 December 31, 2012 |
Three Months Ended September 30, 2013 |
Three Months Ended December 31, 2013 |
|||||||||||||||
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 |
137,119 |
(1,082) |
136,037 |
184,307 |
1,929 |
186,236 |
215,464 |
2,827 |
218,291 |
||||||||
Gross margin |
45.4% |
45.0% |
48.7% |
49.2% |
53.9% |
54.6% |
|||||||||||
Income from operations |
18,705 |
(2,092) |
16,613 |
74,640 |
1,973 |
76,613 |
70,932 |
9,138 |
80,070 |
||||||||
Operating margin |
6.2% |
5.5% |
19.7% |
20.2% |
17.7% |
20.0% |
|||||||||||
Net income attributable to Phoenix New |
27,862 |
(2,092) |
25,770 |
80,042 |
1,973 |
82,015 |
82,867 |
9,138 |
92,005 |
||||||||
Net margin |
9.2% |
8.5% |
21.1% |
21.7% |
20.7% |
23.0% |
|||||||||||
Net income per ADS—diluted |
0.35 |
0.33 |
1.04 |
1.06 |
1.07 |
1.19 |
|||||||||||
Weighted average number of ADSs used in |
79,027,196 |
79,027,196 |
77,223,579 |
77,223,579 |
77,524,623 |
77,524,623 |
Twelve Months Ended December 31, 2012 |
Twelve Months Ended December 31, 2013 |
||||||||||
Non-GAAP |
Non-GAAP |
||||||||||
GAAP |
Adjustments(1) |
Non-GAAP |
GAAP |
Adjustments(1) |
Non-GAAP |
||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
||||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
||||||
Gross profit |
479,705 |
958 |
480,663 |
728,120 |
7,293 |
735,413 |
|||||
Gross margin |
43.2% |
43.3% |
51.1% |
51.6% |
|||||||
Income from operations |
84,639 |
6,759 |
91,398 |
248,189 |
16,723 |
264,912 |
|||||
Operating margin |
7.6% |
8.2% |
17.4% |
18.6% |
|||||||
Net income attributable to Phoenix New Media Limited |
107,359 |
6,759 |
114,118 |
279,554 |
16,723 |
296,277 |
|||||
Net margin |
9.7% |
10.3% |
19.6% |
20.8% |
|||||||
Net income per ADS—diluted |
1.33 |
1.42 |
3.59 |
3.81 |
|||||||
Weighted average number of ADSs used in computing diluted |
80,468,518 |
80,468,518 |
77,802,557 |
77,802,557 |
|||||||
(1) Non-GAAP adjustment is only to exclude share-based compensation expenses or (reversal) of share-based compensation expenses. |
Details of cost of revenues is as follows:
Three Months Ended |
Twelve Months Ended |
||||||||||||
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
December 31, |
December 31, |
|||||||
2012 |
2013 |
2013 |
2013 |
2012 |
2013 |
2013 |
|||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||
(Amounts in thousands) |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited* |
Unaudited |
Unaudited |
||||||
Revenue sharing fees |
47,284 |
76,182 |
56,140 |
9,274 |
263,518 |
249,797 |
41,264 |
||||||
Content and operational costs |
73,125 |
75,538 |
80,246 |
13,255 |
227,934 |
277,038 |
45,763 |
||||||
Bandwidth costs |
19,020 |
18,331 |
19,579 |
3,234 |
67,721 |
76,583 |
12,651 |
||||||
Sales taxes and surcharges |
25,646 |
24,383 |
28,680 |
4,738 |
72,126 |
92,937 |
15,352 |
||||||
Total cost of revenues |
165,075 |
194,434 |
184,645 |
30,501 |
631,299 |
696,355 |
115,030 |
||||||
* Derived from audited financial statements included in the Company's Form 20-F dated April 26, 2013. |
SOURCE