Company News
"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.
Mr. Ya Li, president of
Third Quarter 2015 Financial Results
REVENUES
Total revenues for the third quarter of 2015 decreased by 9.6% to
Net advertising revenues (net of advertising agency service fees) for the third quarter of 2015 decreased by 7.9% to
Paid service revenues for the third quarter of 2015 decreased by 14.8% to
COST OF REVENUES AND GROSS PROFIT
Cost of revenues for the third quarter of 2015 increased by 3.4% to
Gross profit for the third quarter of 2015 was
[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
Adjusted income from operations for the third quarter of 2015, which excludes share-based compensation, was
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
NET INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Adjusted net income attributable to
Net income attributable to
As of
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
[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
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: 70842735
A replay of the call will be available through
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"),
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, |
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