Company News
Fourth Quarter and Fiscal Year 2014 Highlights
- Net advertising revenues for the fourth quarter increased by 28.3% year over year to
RMB338.5 million (US$54.6 million ). - Income from operations for the fourth quarter was
RMB43.4 million (US$7.0 million ). Adjusted income from operations[1] for the fourth quarter wasRMB59.4 million (US$9.6 million ). - Net income per diluted ADS[2] for the fourth quarter was
RMB0.63 (US$0.10) . Adjusted net income per diluted ADS for the fourth quarter wasRMB0.84 (US$0.14) . - Net advertising revenues for fiscal year 2014 increased by 37.8% year over year to
RMB1.2 billion (US$191.8 million ). - Income from operations for fiscal year 2014 was
RMB237.6 million (US$38.3 million ). Adjusted income from operations for fiscal year 2014 increased by 9.8% year over year toRMB290.8 million (US$46.9 million ). - Net income per diluted ADS for fiscal year 2014 was
RMB3.42 (US$0.55) . Adjusted net income per diluted ADS for fiscal year 2014 increased by 4.3% year over year toRMB3.97 (US$0.64) .
[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. |
"We are very pleased with our financial and operating progress during 2014. It was a very encouraging year for us, marked by significant progress related to mobile expansion, our investment in Yidian, innovative advertisement initiatives, and verticalization. We also saw very solid progress in terms of mobile monetization as evidenced by our mobile advertisement revenues growing by 113% year over year in fourth quarter," stated Mr.
Mr. Ya Li, President of
Fourth Quarter 2014 Financial Results
REVENUES
Total revenues for the fourth quarter of 2014 increased by 9.5% to
Net advertising revenues (net of advertising agency service fees) for the fourth quarter of 2014 increased by 28.3% to
Paid service revenues for the fourth quarter of 2014 decreased by 26.9% to
[3] |
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. |
[4] |
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 fourth quarter of 2014 increased by 12.3% to
Gross profit for the fourth quarter of 2014 increased by 7.1% to
OPERATING EXPENSES AND INCOME FROM OPERATIONS
Total operating expenses for the fourth quarter of 2014 increased by 29.6% to
Income from operations for the fourth quarter of 2014 was
Adjusted income from operations, which excludes share-based compensation, for the fourth quarter of 2014 was
OTHER INCOME
Other income reflects interest income, foreign currency exchange gain or loss, gain on disposition of subsidiaries and acquisition of equity investments, loss from equity investments, and others, net[5]. Interest income for the fourth quarter of 2014 was
[5] |
"Others, net" primarily consists of government subsidies. |
NET INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net income attributable to
Adjusted net income attributable to
As of
For the fourth quarter of 2014, the Company's weighted average number of ADSs used in the computation of diluted net income per ADS was 74,496,792. As of
Fiscal Year 2014 Financial Results
REVENUES
Total revenues for fiscal year 2014 increased by 15.0% to
Net advertising revenues (net of advertising agency service fees) for fiscal year 2014 increased by 37.8% to
Paid service revenues for fiscal year 2014 decreased by 20.2% to
COST OF REVENUES AND GROSS PROFIT
Cost of revenues for fiscal year 2014 increased by 12.2% to
Gross profit for fiscal year 2014 increased by 17.6% to
Gross margin for fiscal year 2014 increased to 52.3% from 51.1% in fiscal year 2013, mainly due to the increased revenue contributions from advertising. Adjusted gross margin, which excludes share-based compensation, for fiscal year 2014 increased to 53.3% from 51.6% in fiscal year 2013.
OPERATING EXPENSES AND INCOME FROM OPERATIONS
Total operating expenses for fiscal year 2014 increased by 28.9% to
Income from operations for fiscal year 2014 was
Adjusted income from operations, which excludes share-based compensation, for fiscal year 2014 increased by 9.8% 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 2015, the Company expects its total revenues to be between
Share Repurchase Program
As of
Recent Updates
The Company announced that Mr.
The Company also announced that one of its affiliated consolidated entities established an entertainment subsidiary,
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: |
97144891 |
A replay of the call will be available through
International: |
+61290034211 |
Mainland China: |
4006322162 |
Hong Kong: |
+85230512780 |
United States: |
+16462543697 |
Conference ID: |
97144891 |
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, |
December 31, |
December 31, |
|||
2013 |
2014 |
2014 |
|||
RMB |
RMB |
US$ |
|||
Revised* |
Unaudited |
Unaudited |
|||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
845,138 |
1,285,847 |
207,241 |
||
Term deposits and short term investments |
556,672 |
40,000 |
6,447 |
||
Restricted cash |
10,000 |
- |
- |
||
Accounts receivable, net |
353,379 |
493,569 |
79,549 |
||
Amounts due from related parties |
125,158 |
176,224 |
28,402 |
||
Prepayment and other current assets |
27,911 |
42,703 |
6,883 |
||
Deferred tax assets |
22,779 |
24,565 |
3,959 |
||
Total current assets |
1,941,037 |
2,062,908 |
332,481 |
||
Non-current assets: |
|||||
Property and equipment, net |
95,126 |
89,694 |
14,456 |
||
Intangible assets, net |
7,919 |
14,913 |
2,404 |
||
Available-for-sale investment |
- |
77,093 |
12,425 |
||
Equity investments |
- |
68,880 |
11,101 |
||
Other non-current assets |
12,678 |
13,342 |
2,150 |
||
Total non-current assets |
115,723 |
263,922 |
42,536 |
||
Total assets |
2,056,760 |
2,326,830 |
375,017 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
Current liabilities: |
|||||
Accounts payable |
218,604 |
271,599 |
43,774 |
||
Amounts due to related parties |
21,034 |
22,489 |
3,625 |
||
Advances from customers |
10,732 |
17,587 |
2,835 |
||
Taxes payable |
58,140 |
88,938 |
14,334 |
||
Salary and welfare payable |
98,831 |
105,073 |
16,935 |
||
Accrued expenses and other current liabilities |
62,153 |
86,307 |
13,910 |
||
Total current liabilities |
469,494 |
591,993 |
95,413 |
||
Deferred tax liabilities |
- |
1,312 |
211 |
||
Long-term liabilities |
12,231 |
16,867 |
2,718 |
||
Total non-current liabilities |
12,231 |
18,179 |
2,929 |
||
Total liabilities |
481,725 |
610,172 |
98,342 |
||
Shareholders' equity |
|||||
Phoenix New Media Limited shareholders' equity |
|||||
Class A ordinary shares |
18,530 |
17,278 |
2,785 |
||
Class B ordinary shares |
22,053 |
22,053 |
3,554 |
||
Additional paid-in capital |
1,734,993 |
1,587,227 |
255,815 |
||
Treasury stock |
- |
(13,379) |
(2,156) |
||
Statutory reserves |
50,330 |
65,968 |
10,632 |
||
Retained earnings/(Accumulated deficit) |
(194,601) |
52,852 |
8,518 |
||
Accumulated other comprehensive loss |
(60,127) |
(15,341) |
(2,473) |
||
Total Phoenix New Media Limited shareholders' equity |
1,571,178 |
1,716,658 |
276,675 |
||
Noncontrolling interests |
3,857 |
- |
- |
||
Total shareholders' equity |
1,575,035 |
1,716,658 |
276,675 |
||
Total liabilities and shareholders' equity |
2,056,760 |
2,326,830 |
375,017 |
||
*In the second quarter of 2014, the classification of certain highly liquid principal-guaranteed investments products ("Products") reported as cash and cash equivalents were re-assessed and it was determined that these Products should have been classified as term deposits and short term investments to properly reflect the nature of these assets. |
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, |
|||||||
2013 |
2014 |
2014 |
2014 |
2013 |
2014 |
2014 |
|||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited* |
Unaudited |
Unaudited |
|||||||
Revenues: |
|||||||||||||
Net advertising revenues |
263,940 |
325,756 |
338,509 |
54,558 |
863,737 |
1,190,158 |
191,819 |
||||||
Paid service revenues |
136,169 |
106,017 |
99,556 |
16,046 |
560,738 |
447,702 |
72,156 |
||||||
Total revenues |
400,109 |
431,773 |
438,065 |
70,604 |
1,424,475 |
1,637,860 |
263,975 |
||||||
Cost of revenues |
(184,645) |
(202,889) |
(207,371) |
(33,422) |
(696,355) |
(781,632) |
(125,976) |
||||||
Gross profit |
215,464 |
228,884 |
230,694 |
37,182 |
728,120 |
856,228 |
137,999 |
||||||
Operating expenses: |
|||||||||||||
Sales and marketing expenses |
(88,062) |
(80,541) |
(100,680) |
(16,227) |
(273,399) |
(330,777) |
(53,312) |
||||||
General and administrative expenses |
(27,093) |
(36,933) |
(41,747) |
(6,728) |
(97,849) |
(137,818) |
(22,212) |
||||||
Technology and product development expenses |
(29,377) |
(41,345) |
(44,819) |
(7,224) |
(108,683) |
(149,996) |
(24,175) |
||||||
Total operating expenses |
(144,532) |
(158,819) |
(187,246) |
(30,179) |
(479,931) |
(618,591) |
(99,699) |
||||||
Income from operations |
70,932 |
70,065 |
43,448 |
7,003 |
248,189 |
237,637 |
38,300 |
||||||
Other income: |
|||||||||||||
Interest income |
9,522 |
12,428 |
9,465 |
1,525 |
32,775 |
46,535 |
7,500 |
||||||
Foreign currency exchange gain/(loss) |
4,537 |
(231) |
901 |
145 |
19,687 |
(6,059) |
(977) |
||||||
Gain on disposition of subsidiaries and acquisition of equity investments |
- |
- |
7,309 |
1,178 |
- |
29,660 |
4,780 |
||||||
Loss from equity investments |
- |
(5,855) |
(7,116) |
(1,147) |
- |
(18,538) |
(2,988) |
||||||
Others, net |
7,537 |
5,681 |
3,213 |
518 |
14,960 |
21,261 |
3,427 |
||||||
Income before tax |
92,528 |
82,088 |
57,220 |
9,222 |
315,611 |
310,496 |
50,042 |
||||||
Income tax expense |
(11,192) |
(13,545) |
(10,294) |
(1,659) |
(37,588) |
(48,377) |
(7,797) |
||||||
Net income |
81,336 |
68,543 |
46,926 |
7,563 |
278,023 |
262,119 |
42,245 |
||||||
Net loss/(income) attributable to noncontrolling interests |
1,531 |
1,018 |
(19) |
(3) |
1,531 |
972 |
157 |
||||||
Net income attributable to Phoenix New Media Limited |
82,867 |
69,561 |
46,907 |
7,560 |
279,554 |
263,091 |
42,402 |
||||||
Net income |
81,336 |
68,543 |
46,926 |
7,563 |
278,023 |
262,119 |
42,245 |
||||||
Other comprehensive income, net of tax: fair value remeasurement for |
- |
- |
42,000 |
6,769 |
- |
42,000 |
6,769 |
||||||
Other comprehensive (loss)/income, net of tax: foreign currency |
(5,598) |
(20) |
(3,561) |
(574) |
(23,179) |
2,786 |
449 |
||||||
Comprehensive income |
75,738 |
68,523 |
85,365 |
13,758 |
254,844 |
306,905 |
49,463 |
||||||
Comprehensive loss/(income) attributable to noncontrolling interests |
1,531 |
1,018 |
(19) |
(3) |
1,531 |
972 |
157 |
||||||
Comprehensive income attributable to Phoenix New Media Limited |
77,269 |
69,541 |
85,346 |
13,755 |
256,375 |
307,877 |
49,620 |
||||||
Net income attributable to Phoenix New Media Limited |
82,867 |
69,561 |
46,907 |
7,560 |
279,554 |
263,091 |
42,402 |
||||||
Net income per Class A and Class B ordinary share: |
|||||||||||||
Basic |
0.14 |
0.12 |
0.08 |
0.01 |
0.46 |
0.44 |
0.07 |
||||||
Diluted |
0.13 |
0.11 |
0.08 |
0.01 |
0.45 |
0.43 |
0.07 |
||||||
Net income per ADS (1 ADS represents 8 Class A ordinary shares): |
|||||||||||||
Basic |
1.10 |
0.92 |
0.64 |
0.10 |
3.69 |
3.52 |
0.57 |
||||||
Diluted |
1.07 |
0.90 |
0.63 |
0.10 |
3.59 |
3.42 |
0.55 |
||||||
Weighted average number of Class A and Class B ordinary shares used in computing net income per share: |
|||||||||||||
Basic |
601,035,630 |
602,442,619 |
582,018,815 |
582,018,815 |
605,988,397 |
597,616,623 |
597,616,623 |
||||||
Diluted |
620,196,981 |
618,547,971 |
595,974,339 |
595,974,339 |
622,420,459 |
614,620,110 |
614,620,110 |
||||||
* Derived from audited financial statements included in the Company's Form 20-F dated April 25, 2014. |
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, 2013 |
Three Months Ended September 30, 2014 |
Three Months Ended December 31, 2014 |
|||||||||||||||
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 |
215,464 |
2,827 |
(1) |
218,291 |
228,884 |
5,660 |
(1) |
234,544 |
230,694 |
5,225 |
(1) |
235,919 |
|||||
Gross margin |
53.9% |
54.6% |
53.0% |
54.3% |
52.7% |
53.9% |
|||||||||||
Income from operations |
70,932 |
9,138 |
(1) |
80,070 |
70,065 |
17,872 |
(1) |
87,937 |
43,448 |
15,972 |
(1) |
59,420 |
|||||
Operating margin |
17.7% |
20.0% |
16.2% |
20.4% |
9.9% |
13.6% |
|||||||||||
15,972 |
(1) |
||||||||||||||||
17,872 |
(1) |
7,116 |
(2) |
||||||||||||||
9,138 |
(1) |
5,855 |
(2) |
(7,309) |
(3) |
||||||||||||
Net income attributable to Phoenix New Media Limited |
82,867 |
9,138 |
92,005 |
69,561 |
23,727 |
93,288 |
46,907 |
15,779 |
62,686 |
||||||||
Net margin |
20.7% |
23.0% |
16.1% |
21.6% |
10.7% |
14.3% |
|||||||||||
Net income per ADS - diluted |
1.07 |
1.19 |
0.90 |
1.21 |
0.63 |
0.84 |
|||||||||||
Weighted average number of ADSs used in computing diluted net income per ADS |
77,524,623 |
77,524,623 |
77,318,496 |
77,318,496 |
74,496,792 |
74,496,792 |
|||||||||||
Twelve Months Ended December 31, 2013 |
Twelve Months Ended December 31, 2014 |
|||||||||||||
Non-GAAP |
Non-GAAP |
|||||||||||||
GAAP |
Adjustments |
Non-GAAP |
GAAP |
Adjustments |
Non-GAAP |
|||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|||||||||
Gross profit |
728,120 |
7,293 |
(1) |
735,413 |
856,228 |
16,295 |
(1) |
872,523 |
||||||
Gross margin |
51.1% |
51.6% |
52.3% |
53.3% |
||||||||||
Income from operations |
248,189 |
16,723 |
(1) |
264,912 |
237,637 |
53,181 |
(1) |
290,818 |
||||||
Operating margin |
17.4% |
18.6% |
14.5% |
17.8% |
||||||||||
53,181 |
(1) |
|||||||||||||
18,538 |
(2) |
|||||||||||||
16,723 |
(1) |
(29,660) |
(3) |
|||||||||||
Net income attributable to Phoenix New Media Limited |
279,554 |
16,723 |
296,277 |
263,091 |
42,059 |
305,150 |
||||||||
Net margin |
19.6% |
20.8% |
16.1% |
18.6% |
||||||||||
Net income per ADS - diluted |
3.59 |
3.81 |
3.42 |
3.97 |
||||||||||
Weighted average number of ADSs used in computing diluted net income per ADS |
77,802,557 |
77,802,557 |
76,827,514 |
76,827,514 |
||||||||||
(1) Excludes share-based compensation |
||||||||||||||
(2) Excludes loss from equity investments |
||||||||||||||
(3) Excludes gain on disposition of a subsidiaries and acquisition of equity investments |
Details of cost of revenues are as follows: |
|||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
December 31, |
December 31, |
|||||||
2013 |
2014 |
2014 |
2014 |
2013 |
2014 |
2014 |
|||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||
(Amounts in thousands) |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited* |
Unaudited |
Unaudited |
||||||
Revenue sharing fees |
56,140 |
43,882 |
35,304 |
5,690 |
249,797 |
192,076 |
30,957 |
||||||
Content and operational costs |
80,246 |
104,347 |
114,400 |
18,437 |
277,038 |
376,555 |
60,689 |
||||||
Bandwidth costs |
19,579 |
20,771 |
21,738 |
3,504 |
76,583 |
83,233 |
13,415 |
||||||
Sales taxes and surcharges |
28,680 |
33,889 |
35,929 |
5,791 |
92,937 |
129,768 |
20,915 |
||||||
Total cost of revenues |
184,645 |
202,889 |
207,371 |
33,422 |
696,355 |
781,632 |
125,976 |
||||||
* Derived from audited financial statements included in the Company's Form 20-F dated April 25, 2014. |
Phoenix New Media Limited |
|||||||||||||
Condensed Segment information |
|||||||||||||
(Amounts in thousands) |
|||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
December 31, |
December 31, |
|||||||
2013 |
2014 |
2014 |
2014 |
2013 |
2014 |
2014 |
|||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|||||||
Revenues: |
|||||||||||||
Advertising service |
263,940 |
325,756 |
338,509 |
54,558 |
863,737 |
1,190,158 |
191,819 |
||||||
Paid service |
136,169 |
106,017 |
99,556 |
16,046 |
560,738 |
447,702 |
72,156 |
||||||
Total revenues |
400,109 |
431,773 |
438,065 |
70,604 |
1,424,475 |
1,637,860 |
263,975 |
||||||
Cost of revenues |
|||||||||||||
Advertising service |
102,771 |
130,560 |
137,491 |
22,160 |
367,333 |
479,241 |
77,240 |
||||||
Paid service |
81,874 |
72,329 |
69,880 |
11,262 |
329,022 |
302,391 |
48,736 |
||||||
Total cost of revenues |
184,645 |
202,889 |
207,371 |
33,422 |
696,355 |
781,632 |
125,976 |
||||||
Gross profit |
|||||||||||||
Advertising service |
161,169 |
195,196 |
201,018 |
32,398 |
496,404 |
710,917 |
114,579 |
||||||
Paid service |
54,295 |
33,688 |
29,676 |
4,784 |
231,716 |
145,311 |
23,420 |
||||||
Total gross profit |
215,464 |
228,884 |
230,694 |
37,182 |
728,120 |
856,228 |
137,999 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-fourth-quarter-and-fiscal-year-2014-unaudited-financial-results-300047429.html
SOURCE