Company News
- Live Conference Call to be Held at 8:00 PM U.S. Eastern Time on
November 8
Third Quarter 2016 Highlights
- Net advertising revenues increased by 3.5% to
RMB310.4 million (US$46.6 million ) fromRMB300.0 million in the same period last year. - Paid service revenues were
RMB49.6 million (US$7.4 million ), as compared toRMB90.4 million in the same period last year.
"We are encouraged by the solid results of our ongoing evolution as one of
"We are pleased to share the encouraging progress being made on the Yidian and ifeng platforms," Mr. Ya Li, President of
Third Quarter 2016 Financial Results
REVENUES
Total revenues for the third quarter of 2016 were
Net advertising revenues (net of advertising agency service fees) for the third quarter of 2016 increased by 3.5% to
Paid service revenues for the third quarter of 2016 were
[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. |
COST OF REVENUES
Cost of revenues for the third quarter of 2016 decreased by 12.8% to
GROSS PROFIT
Gross profit for the third quarter of 2016 was
To supplement the financial measures presented in accordance with the United States Generally Accepted Accounting Principles ("GAAP"), the Company has presented certain non-GAAP financial measures in this press release, which excluded the impact of certain non-cash or non-operating items as stated in the "Use of Non-GAAP Financial Measures" section below. 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".
Non-GAAP gross margin, which excludes share-based compensation, for the third quarter of 2016 slightly increased to 47.8% from 47.3% in the third quarter of 2015.
OPERATING EXPENSES AND INCOME FROM OPERATIONS
Total operating expenses for the third quarter of 2016 decreased by 13.0% to
Income from operations for the third quarter of 2016 increased by 228.0% to
Non-GAAP income from operations for the third quarter of 2016, which excludes share-based compensation, decreased by 6.4% to
OTHER INCOME / (LOSS)
Other income/(loss) reflects interest income, interest expense, foreign currency exchange gain/loss, loss from equity investments, including impairments, and others, net[3]. Total other income for the third quarter of 2016 was
[3] "Others, net" primarily consists of government subsidies. |
NET INCOME/(LOSS) ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net income attributable to
Non-GAAP net income attributable to
For the third quarter of 2016, the Company's weighted average number of ADSs used in the computation of diluted net income per ADS was 72,179,058. As of
[4] "ADS" means American Depositary Share of the Company. Each ADS represents eight Class A ordinary shares of the Company. |
CERTAIN BALANCE SHEET ITEMS
As of
As previously reported by the Company, the Company granted
Option Exchange Program
With the approvals of the board of directors and shareholders of the Company and Phoenix TV, the Company implemented an option exchange program from
Business Outlook
For the fourth quarter of 2016, 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: |
+65 6713 5440 |
Mainland China: |
400 1200654 |
Hong Kong: |
+852 3018 6776 |
United States: |
+1 845 675 0438 |
Conference ID: |
8059342 |
A replay of the call will be available through
International: |
+61 2900 34211 |
Mainland China: |
400 6322162 |
Hong Kong: |
+852 3051 2780 |
United States: |
+1 646 254 3697 |
Conference ID: |
8059342 |
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
Tel: +1 (646) 277-1215
Email: investorrelations@ifeng.com
Phoenix New Media Limited |
|||||
Condensed Consolidated Balance Sheets |
|||||
(Amounts in thousands) |
|||||
December 31, |
September 30, |
September 30, |
|||
2015 |
2016 |
2016 |
|||
RMB |
RMB |
US$ |
|||
Audited* |
Unaudited |
Unaudited |
|||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
310,669 |
144,046 |
21,601 |
||
Term deposits and short term investments |
769,681 |
719,069 |
107,831 |
||
Restricted cash |
125,000 |
295,900 |
44,373 |
||
Accounts receivable, net |
506,351 |
398,456 |
59,752 |
||
Amounts due from related parties |
124,677 |
271,159 |
40,663 |
||
Prepayment and other current assets |
58,574 |
72,823 |
10,921 |
||
Convertible debts to a related party |
- |
136,945 |
20,536 |
||
Deferred tax assets |
35,963 |
52,584 |
7,885 |
||
Total current assets |
1,930,915 |
2,090,982 |
313,562 |
||
Non-current assets: |
|||||
Property and equipment, net |
80,537 |
69,954 |
10,490 |
||
Intangible assets, net |
12,404 |
9,745 |
1,461 |
||
Available-for-sale investments |
513,994 |
505,681 |
75,831 |
||
Equity investments, net |
11,610 |
8,788 |
1,318 |
||
Other non-current assets |
17,746 |
17,124 |
2,568 |
||
Total non-current assets |
636,291 |
611,292 |
91,668 |
||
Total assets |
2,567,206 |
2,702,274 |
405,230 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
Current liabilities: |
|||||
Short-term loans |
131,046 |
300,692 |
45,091 |
||
Accounts payable |
289,148 |
241,104 |
36,156 |
||
Amounts due to related parties |
19,368 |
21,290 |
3,193 |
||
Advances from customers |
15,239 |
25,573 |
3,835 |
||
Taxes payable |
93,120 |
62,073 |
9,308 |
||
Salary and welfare payable |
114,028 |
117,410 |
17,607 |
||
Accrued expenses and other current liabilities |
80,891 |
77,091 |
11,560 |
||
Total current liabilities |
742,840 |
845,233 |
126,750 |
||
Non-current liabilities: |
|||||
Deferred tax liabilities |
1,312 |
1,312 |
197 |
||
Long-term liabilities |
18,368 |
20,959 |
3,143 |
||
Total non-current liabilities |
19,680 |
22,271 |
3,340 |
||
Total liabilities |
762,520 |
867,504 |
130,090 |
||
Shareholders' equity: |
|||||
Phoenix New Media Limited shareholders' equity: |
|||||
Class A ordinary shares |
16,733 |
16,818 |
2,522 |
||
Class B ordinary shares |
22,053 |
22,053 |
3,307 |
||
Additional paid-in capital |
1,551,104 |
1,553,263 |
232,925 |
||
Statutory reserves |
70,311 |
70,311 |
10,544 |
||
Retained earnings |
122,093 |
162,925 |
24,432 |
||
Accumulated other comprehensive income |
23,341 |
12,228 |
1,834 |
||
Total Phoenix New Media Limited shareholders' equity |
1,805,635 |
1,837,598 |
275,564 |
||
Noncontrolling interests |
(949) |
(2,828) |
(424) |
||
Total shareholders' equity |
1,804,686 |
1,834,770 |
275,140 |
||
Total liabilities and shareholders' equity |
2,567,206 |
2,702,274 |
405,230 |
||
* Derived from audited financial statements included in the Company's Form 20-F dated April 28, 2016. |
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, |
|||||||
2015 |
2016 |
2016 |
2016 |
2015 |
2016 |
2016 |
|||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|||||||
Revenues: |
|||||||||||||
Net advertising revenues |
300,042 |
297,230 |
310,439 |
46,553 |
880,326 |
879,052 |
131,822 |
||||||
Paid service revenues |
90,377 |
52,833 |
49,583 |
7,436 |
298,101 |
153,973 |
23,090 |
||||||
Total revenues |
390,419 |
350,063 |
360,022 |
53,989 |
1,178,427 |
1,033,025 |
154,912 |
||||||
Cost of revenues |
(209,841) |
(180,508) |
(182,927) |
(27,432) |
(622,358) |
(521,603) |
(78,219) |
||||||
Gross profit |
180,578 |
169,555 |
177,095 |
26,557 |
556,069 |
511,422 |
76,693 |
||||||
Operating expenses: |
|||||||||||||
Sales and marketing expenses |
(83,568) |
(87,017) |
(74,210) |
(11,128) |
(263,377) |
(236,785) |
(35,508) |
||||||
General and administrative expenses |
(45,715) |
(57,587) |
(37,897) |
(5,683) |
(123,969) |
(140,527) |
(21,074) |
||||||
Technology and product development |
(42,992) |
(42,074) |
(37,756) |
(5,662) |
(126,756) |
(120,188) |
(18,023) |
||||||
Total operating expenses |
(172,275) |
(186,678) |
(149,863) |
(22,473) |
(514,102) |
(497,500) |
(74,605) |
||||||
Income/(loss) from operations |
8,303 |
(17,123) |
27,232 |
4,084 |
41,967 |
13,922 |
2,088 |
||||||
Other income/(loss): |
|||||||||||||
Interest income |
6,987 |
8,257 |
7,943 |
1,191 |
22,752 |
24,328 |
3,648 |
||||||
Interest expense |
(1,129) |
(954) |
(1,554) |
(233) |
(1,600) |
(3,283) |
(492) |
||||||
Foreign currency exchange gain/(loss) |
2,711 |
2,411 |
575 |
86 |
(1,797) |
1,122 |
168 |
||||||
Loss from equity investments, including |
(2,703) |
(1,512) |
(1,242) |
(186) |
(32,090) |
(1,747) |
(262) |
||||||
Gain on disposal of an equity investment |
- |
- |
- |
- |
4,643 |
- |
- |
||||||
Others, net |
10,965 |
4,220 |
1,021 |
153 |
16,228 |
9,447 |
1,416 |
||||||
Income/(loss) before tax |
25,134 |
(4,701) |
33,975 |
5,095 |
50,103 |
43,789 |
6,566 |
||||||
Income tax (expense)/benefit |
(4,271) |
1,442 |
(2,879) |
(432) |
(18,359) |
(4,836) |
(725) |
||||||
Net income/(loss) |
20,863 |
(3,259) |
31,096 |
4,663 |
31,744 |
38,953 |
5,841 |
||||||
Net loss attributable to noncontrolling |
332 |
778 |
599 |
90 |
777 |
1,879 |
282 |
||||||
Net income/(loss) attributable to Phoenix |
21,195 |
(2,481) |
31,695 |
4,753 |
32,521 |
40,832 |
6,123 |
||||||
Net income/(loss) |
20,863 |
(3,259) |
31,096 |
4,663 |
31,744 |
38,953 |
5,841 |
||||||
Other comprehensive (loss)/income, net of |
(3,008) |
11,329 |
(39,610) |
(5,940) |
2,493 |
(22,967) |
(3,444) |
||||||
Other comprehensive (loss)/income, net of |
(4,026) |
11,002 |
2,920 |
438 |
(4,407) |
11,854 |
1,778 |
||||||
Comprehensive income/(loss) |
13,829 |
19,072 |
(5,594) |
(839) |
29,830 |
27,840 |
4,175 |
||||||
Comprehensive loss attributable to |
332 |
778 |
599 |
90 |
777 |
1,879 |
282 |
||||||
Comprehensive income/(loss) attributable |
14,161 |
19,850 |
(4,995) |
(749) |
30,607 |
29,719 |
4,457 |
||||||
Net income/(loss) attributable to Phoenix |
21,195 |
(2,481) |
31,695 |
4,753 |
32,521 |
40,832 |
6,123 |
||||||
Net income/(loss) per Class A and Class B |
|||||||||||||
Basic |
0.04 |
(0.00) |
0.06 |
0.01 |
0.06 |
0.07 |
0.01 |
||||||
Diluted |
0.04 |
(0.00) |
0.05 |
0.01 |
0.06 |
0.07 |
0.01 |
||||||
Net income/(loss) per ADS (1 ADS |
|||||||||||||
Basic |
0.30 |
(0.03) |
0.44 |
0.07 |
0.46 |
0.57 |
0.09 |
||||||
Diluted |
0.29 |
(0.03) |
0.44 |
0.07 |
0.45 |
0.57 |
0.08 |
||||||
Weighted average number of Class A and |
|||||||||||||
Basic |
571,085,620 |
573,074,298 |
574,124,546 |
574,124,546 |
570,914,628 |
573,401,254 |
573,401,254 |
||||||
Diluted |
579,594,405 |
573,074,298 |
577,432,460 |
577,432,460 |
581,481,273 |
577,056,594 |
577,056,594 |
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, |
|||||||
2015 |
2016 |
2016 |
2016 |
2015 |
2016 |
2016 |
|||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|||||||
Revenues: |
|||||||||||||
Net advertising service |
300,042 |
297,230 |
310,439 |
46,553 |
880,326 |
879,052 |
131,822 |
||||||
Paid service |
90,377 |
52,833 |
49,583 |
7,436 |
298,101 |
153,973 |
23,090 |
||||||
Total revenues |
390,419 |
350,063 |
360,022 |
53,989 |
1,178,427 |
1,033,025 |
154,912 |
||||||
Cost of revenues |
|||||||||||||
Net advertising service |
142,043 |
146,233 |
151,770 |
22,760 |
414,277 |
424,035 |
63,588 |
||||||
Paid service |
67,798 |
34,275 |
31,157 |
4,672 |
208,081 |
97,568 |
14,631 |
||||||
Total cost of revenues |
209,841 |
180,508 |
182,927 |
27,432 |
622,358 |
521,603 |
78,219 |
||||||
Gross profit |
|||||||||||||
Net advertising service |
157,999 |
150,997 |
158,669 |
23,793 |
466,049 |
455,017 |
68,234 |
||||||
Paid service |
22,579 |
18,558 |
18,426 |
2,764 |
90,020 |
56,405 |
8,459 |
||||||
Total gross profit |
180,578 |
169,555 |
177,095 |
26,557 |
556,069 |
511,422 |
76,693 |
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, 2015 |
Three Months Ended June 30, 2016 |
Three Months Ended September 30, 2016 |
||||||||||||||||
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 |
180,578 |
4,139 |
(1) |
184,717 |
169,555 |
845 |
(1) |
170,400 |
177,095 |
(5,115) |
(1) |
171,980 |
||||||
Gross margin |
46.3% |
47.3% |
48.4% |
48.7% |
49.2% |
47.8% |
||||||||||||
Income/(loss) from operations |
8,303 |
12,045 |
(1) |
20,348 |
(17,123) |
4,453 |
(1) |
(12,670) |
27,232 |
(8,186) |
(1) |
19,046 |
||||||
Operating profit margin |
2.1% |
5.2% |
-4.9% |
-3.6% |
7.6% |
5.3% |
||||||||||||
12,045 |
(1) |
4,453 |
(1) |
(8,186) |
(1) |
|||||||||||||
2,703 |
(2) |
1,512 |
(2) |
1,242 |
(2) |
|||||||||||||
Net income/(loss) attributable |
21,195 |
14,748 |
35,943 |
(2,481) |
5,965 |
3,484 |
31,695 |
(6,944) |
24,751 |
|||||||||
Net profit margin |
5.4% |
9.2% |
-0.7% |
1.0% |
8.8% |
6.9% |
||||||||||||
Net income/(loss) per |
0.29 |
0.50 |
(0.03) |
0.05 |
0.44 |
0.34 |
||||||||||||
Weighted average number of |
72,449,301 |
72,449,301 |
71,634,287 |
71,634,287 |
72,179,058 |
72,179,058 |
||||||||||||
(1) Share-based compensation |
||||||||||||||||||
(2) Loss from equity investments, including impairments |
||||||||||||||||||
Non-GAAP to GAAP reconciling items have no income tax effect. |
Details of cost of revenues are as follows: |
|||||||
Three Months Ended |
|||||||
September 30, |
June 30, |
September 30, |
September 30, |
||||
2015 |
2016 |
2016 |
2016 |
||||
RMB |
RMB |
RMB |
US$ |
||||
(Amounts in thousands) |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|||
Revenue sharing fees |
51,576 |
19,274 |
16,559 |
2,483 |
|||
Content and operational costs |
107,812 |
117,190 |
119,538 |
17,926 |
|||
Bandwidth costs |
20,696 |
15,291 |
16,404 |
2,460 |
|||
Sales taxes and surcharges |
29,757 |
28,753 |
30,426 |
4,563 |
|||
Total cost of revenues |
209,841 |
180,508 |
182,927 |
27,432 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-third-quarter-2016-unaudited-financial-results-300359140.html
SOURCE