Phoenix New Media Reports Third Quarter 2015 Unaudited Financial Results

Company News

Phoenix New Media Reports Third Quarter 2015 Unaudited Financial Results
3Q15 Mobile Advertising Revenues Up 89.8% YOY
Live Conference Call to be Held at 8:00 PM U.S. Eastern Time on November 10

BEIJING, Nov. 10, 2015 /PRNewswire/ -- Phoenix New Media Limited (NYSE: FENG), a leading new media company in China ("Phoenix New Media", "ifeng" or the "Company"), today announced its unaudited financial results for the quarter ended September 30, 2015.

"In the third quarter, we continued to move forward in strengthening and expanding our core mobile apps as well as further honing our journalistic capacities," stated Mr. Shuang Liu, CEO of Phoenix New Media. "The trend towards mobile has brought with it both challenges and significant opportunities. We continue to see soft advertising demand for PC ads, but are encouraged by our 90% year-over-year growth in mobile ad revenues. Even more promising is the progress we have made with our core and complementary mobile products, which place ifeng uniquely at the crossroads of technology and serious journalism. We see mobile as the major gateway for news consumption going forward, and consequentially we are restlessly pursuing our user base expansion across our various mobile apps, optimizing our targeting technology and integrating next-generation high-efficiency ad solutions. We are optimistic about our technology investments and encouraged by the progress we have made so far. Going forward, we will focus on leveraging our premium content and technology to accelerate user base growth and capitalize on emerging monetization opportunities on mobile."

Mr. Ya Li, president of Phoenix New Media, stated, "The third quarter financial results came in line with our guidance. We have been experiencing the macro-economic headwinds which had hindered our advertisement revenue growth thus far in 2015, but we are taking positive steps to address the issue. With Yidian, we continue to amass a broad user-base in a younger demographic, and through continuous innovation in Yidian's 'Interest Engine', we are able to build sophisticated user profiles and enhance big data insights. We believe this capability will continue to increase the stickiness of the app and carry massive untapped monetization potential for us down the road. According to TalkingData, a third party mobile app analytics company, Yidian currently ranks among the top three news and information applications in terms of mobile user coverage in China. Our flagship ifeng News app continues to see strong progress in terms of content enrichment, vertical development and video traffic, solidifying our hold to our traditional middle class and affluent users and demonstrating that our media DNA and journalistic fervor remains unquestionably strong."

Third Quarter 2015 Financial Results

REVENUES

Total revenues for the third quarter of 2015 decreased by 9.6% to RMB390.4 million (US$61.4 million) from RMB431.8 million in the third quarter of 2014.

Net advertising revenues (net of advertising agency service fees) for the third quarter of 2015 decreased by 7.9% to RMB300.0 million (US$47.2 million) from RMB325.8 million in the third quarter of 2014, primarily due to weaker demand for brand advertisements on the PC platform, partially offset by the 89.8% year-over-year growth in mobile advertising revenues.

Paid service revenues for the third quarter of 2015 decreased by 14.8% to RMB90.4 million (US$14.2 million) from RMB106.0 million in the third quarter of 2014. Mobile value-added services ("MVAS")[1] revenues for the third quarter of 2015 decreased by 8.7% to RMB71.1 million (US$11.2 million) from RMB77.9 million in the third quarter of 2014. Revenues from games and others[2] for the third quarter of 2015 decreased by 31.5% to RMB19.3 million (US$3.0 million) from RMB28.1 million in the third quarter of 2014, primarily due to a decrease in revenues generated from web-based games on the Company's game platform.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues for the third quarter of 2015 increased by 3.4% to RMB209.8 million (US$33.0 million) from RMB202.9 million in the third quarter of 2014, primarily due to increases in revenue sharing fees and content and operational costs, offset by a decrease in sales taxes and surcharges. Revenue sharing fees to telecom operators and channel partners in the third quarter of 2015 increased to RMB51.6 million (US$8.1 million) from RMB43.9 million in the third quarter of 2014, mainly due to the increased sales of higher revenue sharing products. Content and operational costs for the third quarter of 2015 increased to RMB107.8 million (US$17.0 million) from RMB104.3 million in the third quarter of 2014, due to increases in content costs. Sales taxes and surcharges for the third quarter of 2015 decreased to RMB29.8 million (US$4.7 million) from RMB33.9 million in the third quarter of 2014. Bandwidth costs was RMB20.7 million (US$3.3 million), which is stable from the same period last year. Share-based compensation included in cost of revenues was RMB4.1 million (US$0.7 million) in the third quarter of 2015, compared to RMB5.7 million in the third quarter of 2014.

Gross profit for the third quarter of 2015 was RMB180.6 million (US$28.4 million), compared to RMB228.9 million in the third quarter of 2014. Gross margin for the third quarter of 2015 was 46.3%, compared to 53.0% in the third quarter of 2014. Adjusted gross margin[3], which excludes share-based compensation, for the third quarter of 2015 was 47.3%, compared to 54.3% in the third quarter of 2014.

[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] 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 third quarter of 2015 increased by 8.5% to RMB172.3 million (US$27.1 million) from RMB158.8 million in the third quarter of 2014. The increase in operating expenses was primarily attributable to our increased spending on mobile traffic acquisition and bad debt provision. Share-based compensation included in operating expenses was RMB7.9 million (US$1.2 million) in the third quarter of 2015, compared to RMB12.2 million in the third quarter of 2014.

Adjusted income from operations for the third quarter of 2015, which excludes share-based compensation, was RMB20.3 million (US$3.2 million), compared to RMB87.9 million in the third quarter of 2014. Income from operations for the third quarter of 2015 was RMB8.3 million (US$1.3 million), compared to RMB70.1 million in the third quarter of 2014.

Adjusted operating margin for the third quarter of 2015, which excludes share-based compensation, was 5.2%, compared to 20.4% in the third quarter of 2014, mainly due to the decrease of gross margin and the increase on mobile traffic acquisition expenses. Operating margin for the third quarter of 2015 was 2.1%, compared to 16.2% in the third quarter of 2014.

OTHER INCOME/(LOSS)

Other income/(loss) reflects loss from equity investments, interest income, net, foreign currency exchange gain or loss and others, net[4]. Total other income for the third quarter of 2015 increased to RMB16.8 million (US$2.6 million) from RMB12.0 million in the third quarter of 2014. Loss from equity investments for the third quarter of 2015 decreased to RMB2.7 million (US$0.4 million) from RMB5.9 million in the third quarter of 2014. Interest income, net, for the third quarter of 2015 was RMB5.9 million (US$0.9 million), compared to RMB12.4 million in the third quarter of 2014. Foreign currency exchange gain for the third quarter of 2015 was RMB2.7 million (US$0.4 million), compared to foreign currency exchange loss RMB0.2 million in the third quarter of 2014.

NET INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED

Adjusted net income attributable to Phoenix New Media Limited, excluding the non-operating items which are the loss from equity investments and share-based compensation, for the third quarter of 2015 was RMB35.9 million (US$5.7 million), compared to RMB93.3 million in the third quarter of 2014. Adjusted net margin for the third quarter of 2015 was 9.2%, compared to 21.6% in the third quarter of 2014. Adjusted net income per diluted ADS[5] in the third quarter of 2015 was RMB0.50(US$0.08), compared to RMB1.21 in the third quarter of 2014.

Net income attributable to Phoenix New Media Limited for the third quarter of 2015 was RMB21.2 million (US$3.3 million), compared to net income attributable to Phoenix New Media Limited of RMB69.6 million in the third quarter of 2014. Net margin for the third quarter of 2015 was 5.4%, compared to 16.1% in the third quarter of 2014.Net income per diluted ADS in the third quarter of 2015 was RMB0.29(US$0.05), compared to RMB0.90 in the third quarter of 2014.

As of September 30, 2015, the Company's cash and cash equivalents, term deposits and short term investments and restricted cash were RMB1.13 billion (US$177.9 million).

For the third quarter of 2015, the Company's weighted average number of ADSs used in the computation of diluted net income per ADS was 72,449,301. As of September 30, 2015, the Company had a total of 569,286,670 ordinary shares outstanding, or the equivalent of 71,160,834 ADSs.

[4] "Others, net" primarily consists of government subsidies.

[5] "ADS" means American Depositary Share of the Company. Each ADS represents eight Class A ordinary shares of the Company.

Business Outlook

For the fourth quarter of 2015, the Company expects its total revenues to be between RMB368 million and RMB388 million. Net advertising revenues are expected to be between RMB295 million and RMB310 million. Paid service revenues are expected to be between RMB73 million and RMB78 million. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.

Conference Call Information

The Company will hold a conference call at 8:00 p.m. U.S. Eastern Time on November 10, 2015 (November 11, 2015 at 9:00 a.m.Beijing / Hong Kong time) to discuss its third quarter 2015 unaudited financial results and operating performance.

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:          70842735

A replay of the call will be available through November 17, 2015 by using the dial-in numbers and conference ID below:

International:            +61290034211        
Mainland China:        4006322162              
Hong Kong:              +85230512780          
United States:          +16462543697          
Conference ID:         70842735

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"), Phoenix New Media Limited uses adjusted gross profit, adjusted gross margin, adjusted income from operations, adjusted operating margin, adjusted net income attributable to Phoenix New Media Limited, adjusted net margin and adjusted net income per diluted ADS, each of which is a non-GAAP financial measure. Adjusted gross profit is gross profit excluding share-based compensation. Adjusted gross margin is adjusted gross profit divided by total revenues. Adjusted income from operations is income from operations excluding share-based compensation. Adjusted operating margin is adjusted income from operations divided by total revenues. Adjusted net income attributable to Phoenix New Media Limited is net income attributable to Phoenix New Media Limited excluding share-based compensation, loss from equity investments and gain on disposal of an equity investment and acquisition of available-for-sale securities. Adjusted net margin is adjusted net income attributable to Phoenix New Media Limited divided by total revenues. Adjusted net income per diluted ADS is adjusted net income attributable to Phoenix New Media Limited divided by weighted average number of diluted ADSs. The Company believes that separate analysis and exclusion of the non-cash impact of share-based compensation, loss from equity investments and gain on disposal of an equity investment and acquisition of available-for- sale securities add clarity to the constituent parts of its performance. The Company reviews adjusted net income together with net income to obtain a better understanding of its operating performance. It uses these non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that using multiple measures to evaluate its business allows both management and investors to assess the Company's performance against its competitors. The Company also believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of non-cash share-based compensation, loss from equity investments and gain on disposal of an equity investment and acquisition of available-for- sale securities. Share-based compensation and loss from equity investments have been and will continue to be significant and recurring in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly-titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from, or as an alternative to, the financial measures prepared in accordance with U.S. 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 RMB6.3556 to US$1.00, the noon buying rate in effect on September 30, 2015 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

About Phoenix New Media Limited

Phoenix New Media Limited (NYSE: FENG) is a leading new media company providing premium content on an integrated platform across Internet, mobile and TV channels in China. Having originated from a leading global Chinese language TV network based in Hong Kong, Phoenix TV, the Company enables consumers to access professional news and other quality information and share user-generated content on the Internet and through their mobile devices. Phoenix New Media's platform includes its ifeng.com channel, consisting of its ifeng.com website and web-based game platform, its video channel, comprised of its dedicated video vertical and mobile video services, and its mobile channel, including its mobile Internet website, mobile applications and mobile value-added services.

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 Phoenix New Media's strategic and operational plans, contain forward−looking statements. Phoenix New Media may also make written or oral forward−looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC") on Forms 20−F and 6−K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Phoenix New Media's beliefs and expectations, are forward−looking statements. Forward−looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward−looking statement, including but not limited to the following: the Company's goals and strategies; the Company's future business development, financial condition and results of operations; the expected growth of online and mobile advertising, online video and mobile paid services markets in China; the Company's reliance on online and mobile advertising and MVAS for a majority of its total revenues; the Company's expectations regarding demand for and market acceptance of its services; the Company's expectations regarding maintaining and strengthening its relationships with advertisers, partners and customers; fluctuations in the Company's quarterly operating results; the Company's plans to enhance its user experience, infrastructure and services offerings; the Company's reliance on mobile operators in China to provide most of its MVAS; changes by mobile operators in China to their policies for MVAS; competition in its industry in China; and relevant government policies and regulations relating to the Company. Further information regarding these and other risks is included in the Company's filings with the SEC, including its registration statement on Form F−1, as amended, and its annual reports on Form 20−F. All information provided in this press release and in the attachments is as of the date of this press release, and Phoenix New Media does not undertake any obligation to update any forward−looking statement, except as required under applicable law.

For investor and media inquiries please contact:

Phoenix New Media Limited
Matthew Zhao
Email: investorrelations@ifeng.com

ICR, Inc.
In Beijing, China: Charles Eveslage
In New York City: Katherine Knight
Tel: +1 (646) 277-1276
Email: investorrelations@ifeng.com

Phoenix New Media Limited

Condensed Consolidated Balance Sheets

(Amounts in thousands)


December 31,


September 30,


September 30,

2014

2015


2015


RMB


RMB


US$


Audited*


Unaudited


Unaudited







ASSETS






Current assets:






Cash and cash equivalents

1,285,847


205,122


32,274

Term deposits and short term investments

40,000


800,474


125,948

Restricted cash

-


125,000


19,668

Accounts receivable, net

493,569


503,825


79,273

Amounts due from related parties

176,224


141,796


22,310

Prepayment and other current assets

42,703


67,607


10,637

Deferred tax assets

24,565


33,076


5,204

Total current assets

2,062,908


1,876,900


295,314

Non-current assets:






Property and equipment, net

89,694


88,377


13,905

Intangible assets, net

14,913


14,393


2,265

Available-for-sale investment

77,093


471,565


74,197

Equity investments

68,880


21,083


3,317

Other non-current assets

13,342


16,745


2,635

Total non-current assets

263,922


612,163


96,319

Total assets

2,326,830


2,489,063


391,633

LIABILITIES AND SHAREHOLDERS' EQUITY






Current liabilities:






Short-term loan

-


128,376


20,199

Accounts payable

271,599


297,249


46,770

Amounts due to related parties

22,489


14,822


2,332

Advances from customers

17,587


22,271


3,504

Taxes payable

88,938


82,552


12,989

Salary and welfare payable

105,073


104,502


16,443

Accrued expenses and other current liabilities

86,307


92,514


14,555

Total current liabilities

591,993


742,286


116,792

Non-current liabilities:






Deferred tax liabilities

1,312


1,312


206

Long-term liabilities

16,867


18,037


2,838

Total non-current liabilities

18,179


19,349


3,044

Total liabilities

610,172


761,635


119,836

Shareholders' equity:






Phoenix New Media Limited shareholders' equity:






Class A ordinary shares

17,278


16,650


2,620

Class B ordinary shares

22,053


22,053


3,470

Additional paid-in capital

1,587,227


1,555,166


244,692

Treasury stock

(13,379)


-


-

Statutory reserves

65,968


65,968


10,380

Retained earnings

52,852


85,373


13,433

Accumulated other comprehensive loss

(15,341)


(17,255)


(2,715)

Total Phoenix New Media Limited shareholders' equity

1,716,658


1,727,955


271,880

Noncontrolling interests

-


(527)


(83)

Total shareholders' equity

1,716,658


1,727,428


271,797

Total liabilities and shareholders' equity

2,326,830


2,489,063


391,633

* 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


Nine Months Ended


September 30,


June 30,


September 30,


September 30,


September 30,


September 30,


September 30,


2014


2015


2015


2015


2014


2015


2015


RMB


RMB


RMB


US$


RMB


RMB


US$


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited















Revenues:














 Net advertising revenues

325,756


311,888


300,042


47,209


851,649


880,326


138,512

  Paid service revenues

106,017


111,019


90,377


14,220


348,146


298,101


46,904

Total revenues                                                                     

431,773


422,907


390,419


61,429


1,199,795


1,178,427


185,416

Cost of revenues

(202,889)


(222,383)


(209,841)


(33,017)


(574,261)


(622,358)


(97,923)

Gross profit

228,884


200,524


180,578


28,412


625,534


556,069


87,493

Operating expenses:














  Sales and marketing expenses

(80,541)


(92,219)


(83,568)


(13,149)


(230,097)


(263,377)


(41,440)

  General and administrative expenses

(36,933)


(39,195)


(45,715)


(7,193)


(96,071)


(123,969)


(19,505)

  Technology and product development expenses

(41,345)


(42,388)


(42,992)


(6,764)


(105,177)


(126,756)


(19,944)

Total operating expenses

(158,819)


(173,802)


(172,275)


(27,106)


(431,345)


(514,102)


(80,889)

Income from operations

70,065


26,722


8,303


1,306


194,189


41,967


6,604

Other income/(loss):














  Interest income, net

12,428


6,463


5,858


922


37,070


21,152


3,328

  Foreign currency exchange (loss) /gain

(231)


(2,591)


2,711


427


(6,960)


(1,797)


(283)

  Gain on disposition of subsidiaries and acquisition 

of equity investments

-


-


-


-


22,351


-


-

  Loss from equity investments

(5,855)


(9,368)


(2,703)


(425)


(11,422)


(32,090)


(5,049)

  gain on disposal of an equity investment and 

acquisition of available-for- sale securities

-


4,643


-


-


-


4,643


731

  Others, net

5,681


5,561


10,965


1,725


18,048


16,228


2,553

Income before tax

82,088


31,430


25,134


3,955


253,276


50,103


7,884

  Income tax expense

(13,545)


(9,229)


(4,271)


(672)


(38,083)


(18,359)


(2,889)

Net income

68,543


22,201


20,863


3,283


215,193


31,744


4,995

  Net loss attributable to noncontrolling interests

1,018


334


332


52


991


777


122

Net income attributable to Phoenix New Media Limited

69,561


22,535


21,195


3,335


216,184


32,521


5,117

Net income

68,543


22,201


20,863


3,283


215,193


31,744


4,995

  Other comprehensive income/(loss), net of tax:

fair value remeasurement for available- for-sale

securities

-


8,803


(3,008)


(473)


-


2,493


392

  Other comprehensive (loss)/ income,net of tax:

foreign currency translation adjustment

(20)


(1,619)


(4,026)


(633)


6,347


(4,407)


(693)

Comprehensive income

68,523


29,385


13,829


2,177


221,540


29,830


4,694

  Comprehensive loss attributable to noncontrolling 

interests

1,018


334


332


52


991


777


122

Comprehensive income attributable to Phoenix New  Media Limited

69,541


29,719


14,161


2,229


222,531


30,607


4,816

Net income  attributable to Phoenix New Media Limited

69,561


22,535


21,195


3,335


216,184


32,521


5,117

Net income per Class A and Class B ordinary share:














  Basic

0.12


0.04


0.04


0.01


0.36


0.06


0.01

  Diluted

0.11


0.04


0.04


0.01


0.35


0.06


0.01

Net income per ADS (1 ADS represents 8 

Class A ordinary  shares):














  Basic

0.92


0.32


0.30


0.05


2.87


0.46


0.07

  Diluted

0.90


0.31


0.29


0.05


2.79


0.45


0.07

Weighted average number of Class A and Class B 

ordinary shares used in computing net income per share:














  Basic

602,442,619


569,818,126


571,085,620


571,085,620


602,873,027


570,914,628


570,914,628

  Diluted

618,547,971


581,266,146


579,594,405


579,594,405


620,892,502


581,481,273


581,481,273

 


 

Phoenix New Media Limited

Condensed Segments Information

(Amounts in thousands)


Three Months Ended


Nine Months Ended


September 30,


June 30,


September 30,


September 30,


September 30,


September 30,


September 30,


2014


2015


2015


2015


2014


2015


2015


RMB


RMB


RMB


US$


RMB


RMB


US$


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited















Revenues:














  Net advertising service

325,756


311,888


300,042


47,209


851,649


880,326


138,512

  Paid service

106,017


111,019


90,377


14,220


348,146


298,101


46,904

Total revenues

431,773


422,907


390,419


61,429


1,199,795


1,178,427


185,416

Cost of revenues














  Net advertising service

145,155


144,412


142,043


22,350


372,039


414,277


65,183

  Paid service

57,734


77,971


67,798


10,667


202,222


208,081


32,740

Total cost of revenues

202,889


222,383


209,841


33,017


574,261


622,358


97,923

Gross profit














  Net advertising service

180,601


167,476


157,999


24,859


479,610


466,049


73,329

  Paid service

48,283


33,048


22,579


3,553


145,924


90,020


14,164

Total gross profit

228,884


200,524


180,578


28,412


625,534


556,069


87,493


 

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, 2014


Three Months Ended June 30, 2015


Three Months Ended September 30, 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

228,884


5,660

(1)

234,544


200,524


4,493

(1)

205,017


180,578


4,139

(1)

184,717

Gross margin

53.0%




54.3%


47.4%




48.5%


46.3%




47.3%

Income from operations                   

70,065


17,872

(1)

87,937


26,722


13,461

(1)

40,183


8,303


12,045

(1)

20,348

Operating margin

16.2%




20.4%


6.3%




9.5%


2.1%




5.2%










13,461

(1)











17,872

(1)





9,368

(2)





12,045

(1)





5,855

(2)





(4,643)

(3)





2,703

(2)


Net income attributable to Phoenix New Media Limited

69,561


23,727


93,288


22,535


18,186


40,721


21,195


14,748


35,943

Net margin

16.1%




21.6%


5.3%




9.6%


5.4%




9.2%

Net income per ADS—diluted

0.90




1.21


0.31




0.56


0.29




0.50

Weighted average number of ADSs     used in computing  diluted net     income per ADS

77,318,496




77,318,496


72,658,268




72,658,268


72,449,301




72,449,301

(1) Excludes share-based compensation

(2) Excludes loss from equity investments

(3) Excludes gain on disposal of an equity investment and acquisition of available-for-sale securities

Details of cost of revenues are as follows:


Three Months Ended


September 30,


June 30,


September 30,


September 30,


2014


2015


2015


2015


RMB


RMB


RMB


US$

(Amounts in thousands)

Unaudited


Unaudited


Unaudited


Unaudited

Revenue sharing fees                           

43,882


67,327


51,576


8,115

Content and operational costs

104,347


101,583


107,812


16,964

Bandwidth costs

20,771


21,272


20,696


3,256

Sales taxes and surcharges

33,889


32,201


29,757


4,682

Total cost of revenues

202,889


222,383


209,841


33,017

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-third-quarter-2015-unaudited-financial-results-300175786.html

SOURCE Phoenix New Media Limited

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