Company News
Third Quarter 2013 Highlights
- Total revenues increased by 32.3% year-over-year to
RMB378.7 million (US$61.9 million ), driven by a 59.3% increase in net advertising revenues, and a 6.2% increase in paid service revenues. - Net income attributable to
Phoenix New Media Limited increased by 593.5% year-over-year toRMB80.0 million (US$13.1 million ). - Adjusted net income attributable to
Phoenix New Media Limited 1 increased by 481.5% year-over-year toRMB82.0 million (US$13.4 million ). - Adjusted net income per diluted ADS2 increased by 507.5% year-over-year to
RMB1.06 (US$0.17) .
Mr.
Mr. Liu continued, "Looking forward to 2014, we are focusing on leveraging the economies of scale inherent in our core media platform to expand into additional lifestyle verticals such as real estate, auto, health and several other key areas. We expect these new initiatives will not only help solidify the ifeng brand as a respected and diversified news and lifestyle media company, but they will also further expand our user reach and strengthen user stickiness across the ifeng media platform. As one of
Third Quarter 2013 Financial Results
REVENUES
Total revenues for the third quarter of 2013 increased by 32.3% to
Net advertising revenues, calculated net of advertising agency service fees, for the third quarter of 2013 increased by 59.3% to
Paid service revenues3 for the third quarter of 2013 increased by 6.2% to
COST OF REVENUES AND GROSS PROFIT
Cost of revenues for the third quarter of 2013 increased by 11.8% to
Gross profit for the third quarter of 2013 increased by 63.9% to
OPERATING EXPENSES AND INCOME FROM OPERATIONS
Total operating expenses for the third quarter of 2013 increased by 0.8% to
Income from operations for the third quarter of 2013 increased significantly to
Adjusted income from operations for the third quarter of 2013, which excludes share-based compensation expenses, increased significantly to
FOREIGN
Foreign currency exchange gain for the third quarter of 2013 was
NET INCOME
Net income attributable to
Adjusted net income attributable to
For the third quarter of 2013, the Company's weighted average number of ADSs used in the computation of diluted net income per ADS was 77,223,579.
Business Outlook
For the fourth quarter of 2013, the Company expects its total revenues to be between
Share Options
In
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: |
94119115 |
A replay of the call will be available through
International: |
+61281990299 |
China: |
4001200931 |
Hong Kong: |
+85230512780 |
United States: |
+16462543697 |
Conference ID: |
94119115 |
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 adjusted 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, and mobile games through 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, |
September 30, |
September 30, | |||
2012 |
2013 |
2013 | |||
RMB |
RMB |
US$ | |||
Audited* |
Unaudited |
Unaudited | |||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
916,169 |
1,198,626 |
195,854 | ||
Term deposits |
235,000 |
55,332 |
9,041 | ||
Accounts receivable, net |
280,987 |
322,014 |
52,617 | ||
Amounts due from related parties |
63,811 |
156,178 |
25,519 | ||
Prepayment and other current assets |
42,557 |
70,532 |
11,525 | ||
Deferred tax assets |
17,504 |
21,993 |
3,594 | ||
Total current assets |
1,556,028 |
1,824,675 |
298,150 | ||
Non-current assets: |
|||||
Property and equipment, net |
102,547 |
99,813 |
16,309 | ||
Intangible assets, net |
9,488 |
9,750 |
1,593 | ||
Other non-current assets |
13,104 |
12,161 |
1,987 | ||
Total non-current assets |
125,139 |
121,724 |
19,889 | ||
Total assets |
1,681,167 |
1,946,399 |
318,039 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
Current liabilities: |
|||||
Accounts payable |
154,637 |
194,235 |
31,738 | ||
Amounts due to related parties |
1,806 |
20,030 |
3,273 | ||
Advances from customers |
5,884 |
16,155 |
2,640 | ||
Taxes payable |
40,156 |
60,373 |
9,865 | ||
Salary and welfare payable |
63,631 |
83,425 |
13,632 | ||
Accrued expenses and other current liabilities |
40,717 |
83,781 |
13,689 | ||
Total current liabilities |
306,831 |
457,999 |
74,837 | ||
Long-term liabilities |
7,996 |
8,264 |
1,350 | ||
Total liabilities |
314,827 |
466,263 |
76,187 | ||
Shareholders' equity |
|||||
Class A ordinary shares |
19,575 |
18,567 |
3,034 | ||
Class B ordinary shares |
22,053 |
22,053 |
3,603 | ||
Additional paid-in capital |
1,785,597 |
1,721,183 |
281,239 | ||
Treasury stock |
(112) |
- |
- | ||
Statutory reserves |
31,985 |
31,985 |
5,226 | ||
Accumulated deficit |
(455,810) |
(259,123) |
(42,340) | ||
Accumulated other comprehensive loss |
(36,948) |
(54,529) |
(8,910) | ||
Total shareholders' equity |
1,366,340 |
1,480,136 |
241,852 | ||
Total liabilities and shareholders' equity |
1,681,167 |
1,946,399 |
318,039 | ||
* 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 |
Nine Months Ended | ||||||||||||||
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
September 30, |
September 30, | |||||||||
2012 |
2013 |
2013 |
2013 |
2012 |
2013 |
2013 | |||||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ | |||||||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited | |||||||||
Revenues: |
|||||||||||||||
Net advertising revenues |
140,521 |
209,520 |
223,831 |
36,574 |
417,022 |
599,797 |
98,006 | ||||||||
Paid service revenues |
145,837 |
154,728 |
154,910 |
25,312 |
391,788 |
424,569 |
69,374 | ||||||||
Total revenues |
286,358 |
364,248 |
378,741 |
61,886 |
808,810 |
1,024,366 |
167,380 | ||||||||
Cost of revenues |
(173,887) |
(173,422) |
(194,434) |
(31,770) |
(466,224) |
(511,710) |
(83,613) | ||||||||
Gross profit |
112,471 |
190,826 |
184,307 |
30,116 |
342,586 |
512,656 |
83,767 | ||||||||
Operating expenses: |
|||||||||||||||
Sales and marketing expenses |
(54,073) |
(64,406) |
(65,839) |
(10,758) |
(130,773) |
(185,337) |
(30,284) | ||||||||
General and administrative expenses |
(29,029) |
(29,320) |
(16,604) |
(2,713) |
(78,004) |
(70,756) |
(11,561) | ||||||||
Technology and product development expenses |
(25,676) |
(26,457) |
(27,224) |
(4,448) |
(67,875) |
(79,306) |
(12,958) | ||||||||
Total operating expenses |
(108,778) |
(120,183) |
(109,667) |
(17,919) |
(276,652) |
(335,399) |
(54,803) | ||||||||
Income from operations |
3,693 |
70,643 |
74,640 |
12,197 |
65,934 |
177,257 |
28,964 | ||||||||
Other income: |
|||||||||||||||
Interest income |
8,150 |
7,502 |
8,860 |
1,448 |
25,466 |
23,253 |
3,800 | ||||||||
Foreign currency exchange (loss)/gain |
(1,976) |
9,969 |
3,008 |
492 |
(4,692) |
15,150 |
2,475 | ||||||||
Others, net |
1,494 |
1,368 |
2,769 |
452 |
4,508 |
7,423 |
1,213 | ||||||||
Income before tax |
11,361 |
89,482 |
89,277 |
14,589 |
91,216 |
223,083 |
36,452 | ||||||||
Income tax benefit/(expense) |
181 |
(12,041) |
(9,235) |
(1,510) |
(11,719) |
(26,396) |
(4,313) | ||||||||
Net income attributable to Phoenix New Media Limited |
11,542 |
77,441 |
80,042 |
13,079 |
79,497 |
196,687 |
32,139 | ||||||||
Other comprehensive income/(loss), net of tax: foreign currency translation adjustment |
2,660 |
(11,533) |
(3,722) |
(608) |
6,326 |
(17,581) |
(2,873) | ||||||||
Comprehensive income attributable to Phoenix New Media Limited |
14,202 |
65,908 |
76,320 |
12,471 |
85,823 |
179,106 |
29,266 | ||||||||
Net income attributable to Phoenix New Media Limited |
11,542 |
77,441 |
80,042 |
13,079 |
79,497 |
196,687 |
32,139 | ||||||||
Net income per Class A and Class B ordinary share: |
|||||||||||||||
Basic |
0.02 |
0.13 |
0.13 |
0.02 |
0.13 |
0.32 |
0.05 | ||||||||
Diluted |
0.02 |
0.12 |
0.13 |
0.02 |
0.12 |
0.32 |
0.05 | ||||||||
Net income per ADS (1 ADS represents 8 Class A ordinary shares): |
|||||||||||||||
Basic |
0.15 |
1.02 |
1.07 |
0.17 |
1.02 |
2.59 |
0.42 | ||||||||
Diluted |
0.14 |
1.00 |
1.04 |
0.17 |
0.98 |
2.52 |
0.41 | ||||||||
Weighted average number of Class A and Class B ordinary shares used in computing net income per share: |
|||||||||||||||
Basic |
627,328,020 |
608,449,218 |
599,683,858 |
599,683,858 |
626,476,370 |
607,657,461 |
607,657,461 | ||||||||
Diluted |
645,376,189 |
621,692,696 |
617,788,630 |
617,788,630 |
647,617,767 |
623,179,760 |
623,179,760 |
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 September 30, 2012 |
Three Months Ended June 30, 2013 |
Three Months Ended September 30, 2013 | |||||||||||||||
GAAP |
Non-GAAP Adjustments(1) |
Non-GAAP |
GAAP |
Non-GAAP Adjustments(1) |
Non-GAAP |
GAAP |
Non-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 |
112,471 |
554 |
113,025 |
190,826 |
1,931 |
192,757 |
184,307 |
1,929 |
186,236 | ||||||||
Gross margin |
39.3% |
39.5% |
52.4% |
52.9% |
48.7% |
49.2% | |||||||||||
Income from operations |
3,693 |
2,561 |
6,254 |
70,643 |
6,156 |
76,799 |
74,640 |
1,973 |
76,613 | ||||||||
Operating margin |
1.3% |
2.2% |
19.4% |
21.1% |
19.7% |
20.2% | |||||||||||
Net income attributable to Phoenix New Media Limited |
11,542 |
2,561 |
14,103 |
77,441 |
6,156 |
83,597 |
80,042 |
1,973 |
82,015 | ||||||||
Net margin |
4.0% |
4.9% |
21.3% |
23.0% |
21.1% |
21.7% | |||||||||||
Net income per ADS—diluted |
0.14 |
0.17 |
1.00 |
1.08 |
1.04 |
1.06 | |||||||||||
Weighted average number of ADSs used in computing diluted net income per ADS |
80,672,024 |
80,672,024 |
77,711,587 |
77,711,587 |
77,223,579 |
77,223,579 | |||||||||||
(1) Non-GAAP adjustment is only to exclude share-based compensation expenses. |
Details of cost of revenues is as follows: | |||||||
Three Months Ended | |||||||
September 30, |
June 30, |
September 30, |
September 30, | ||||
2012 |
2013 |
2013 |
2013 | ||||
RMB |
RMB |
RMB |
US$ | ||||
(Amounts in thousands) |
Unaudited |
Unaudited |
Unaudited |
Unaudited | |||
Revenue sharing fees |
79,383 |
67,962 |
76,182 |
12,448 | |||
Content and operational costs |
60,109 |
64,172 |
75,538 |
12,343 | |||
Bandwidth costs |
20,175 |
20,231 |
18,331 |
2,995 | |||
Sales taxes and surcharges |
14,220 |
21,057 |
24,383 |
3,984 | |||
Total cost of revenues |
173,887 |
173,422 |
194,434 |
31,770 |
SOURCE