Company News
First Quarter 2014 Highlights
- Total revenues increased by 26.9% year-over-year to
RMB357.1 million (US$57.5 million ), driven by a 41.1% increase in net advertising revenues, and a 6.3% increase in paid service revenues. - Net income attributable to
Phoenix New Media Limited increased by 58.6% year-over-year toRMB62.2 million (US$10.0 million ). Adjusted net income attributable to Phoenix New Media Limited[1] increased by 47.2% year-over-year toRMB56.9 million (US$9.2 million ). - Net income per diluted ADS[2] increased by 60.6% year-over-year to
RMB0.80 (US$0.13) . Adjusted net income per diluted ADS increased by 49.1% year-over-year toRMB0.73 (US$0.12) .
[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. |
Mr.
Mr. Liu continued, "The first quarter, being a very eventful period in
First Quarter 2014 Financial Results
REVENUES
Total revenues for the first quarter of 2014 increased by 26.9% to
Net advertising revenues (net of advertising agency service fees), for the first quarter of 2014 increased by 41.1% to
Paid service revenues for the first quarter of 2014 increased by 6.3% 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 first quarter of 2014 increased by 20.9% to
Gross profit for the first quarter of 2014 increased by 33.3% to
OPERATING EXPENSESAND INCOME FROM OPERATIONS
Total operating expenses for the first quarter of 2014 increased by 32.9% to
Income from operations for the first quarter of 2014 increased by 34.7% to
Adjusted income from operations, which excludes share-based compensation, for the first quarter of 2014 increased by 71.7% to
OTHER INCOME
Other income reflects interest income, foreign currency exchange gain or loss, gain on disposition of a subsidiary and acquisition of equity investment, loss from equity investment, and others, net. "Others, net" primarily consists of government subsidies.
Interest income for the first quarter of 2014 increased to
In
NET INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net income attributable to
Adjusted net income attributable to
For the first quarter of 2014, the Company's weighted average number of ADSs used in the computation of diluted net income per ADS was 77,759,176. As of
Business Outlook
For the second quarter of 2014, 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 dial the following numbers:
International: |
+6567239385 |
Mainland China: |
4001200654 |
Hong Kong: |
+85230512745 |
United States: |
+18456750438 |
Conference ID: |
33941477 |
A replay of the call will be available through
International: |
+61290034211 |
Mainland China: |
4006322162 |
Hong Kong: |
+85230512780 |
United States: |
+16462543697 |
Conference ID: |
33941477 |
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) 405-4883
Email: investorrelations@ifeng.com
Phoenix New Media Limited |
|||||
Condensed Consolidated Balance Sheets |
|||||
(Amounts in thousands) |
|||||
December 31, 2013 |
March 31, 2014 |
March 31, 2014 |
|||
RMB |
RMB |
US$ |
|||
Audited* |
Unaudited |
Unaudited |
|||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
1,308,138 |
1,256,462 |
202,121 |
||
Restricted cash |
10,000 |
- |
- |
||
Term deposits |
93,672 |
137,123 |
22,058 |
||
Accounts receivable, net |
353,379 |
374,020 |
60,167 |
||
Amounts due from related parties |
125,158 |
165,221 |
26,578 |
||
Prepayment and other current assets |
27,911 |
58,084 |
9,343 |
||
Deferred tax assets |
22,779 |
22,434 |
3,609 |
||
Total current assets |
1,941,037 |
2,013,344 |
323,876 |
||
Non-current assets: |
|||||
Property and equipment, net |
95,126 |
93,984 |
15,119 |
||
Intangible assets, net |
7,919 |
8,508 |
1,369 |
||
Equity investments |
- |
16,152 |
2,598 |
||
Other non-current assets |
12,678 |
14,113 |
2,270 |
||
Total non-current assets |
115,723 |
132,757 |
21,356 |
||
Total assets |
2,056,760 |
2,146,101 |
345,232 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
Current liabilities: |
|||||
Accounts payable |
218,604 |
231,700 |
37,272 |
||
Amounts due to related parties |
21,034 |
22,330 |
3,592 |
||
Advances from customers |
10,732 |
13,488 |
2,170 |
||
Taxes payable |
58,140 |
46,455 |
7,473 |
||
Salary and welfare payable |
98,831 |
70,097 |
11,276 |
||
Accrued expenses and other current liabilities |
62,153 |
90,898 |
14,623 |
||
Total current liabilities |
469,494 |
474,968 |
76,406 |
||
Long-term liabilities |
12,231 |
13,652 |
2,196 |
||
Total liabilities |
481,725 |
488,620 |
78,602 |
||
Shareholders' equity |
|||||
Phoenix New Media Limited shareholders' equity |
|||||
Class A ordinary shares |
18,530 |
18,617 |
2,995 |
||
Class B ordinary shares |
22,053 |
22,053 |
3,548 |
||
Additional paid-in capital |
1,734,993 |
1,748,643 |
281,295 |
||
Statutory reserves |
50,330 |
50,330 |
8,096 |
||
Accumulated deficit |
(194,601) |
(132,440) |
(21,305) |
||
Accumulated other comprehensive loss |
(60,127) |
(52,976) |
(8,522) |
||
Total Phoenix New Media Limited shareholders' equity |
1,571,178 |
1,654,227 |
266,107 |
||
Noncontrolling interests |
3,857 |
3,254 |
523 |
||
Total shareholders' equity |
1,575,035 |
1,657,481 |
266,630 |
||
Total liabilities and shareholders' equity |
2,056,760 |
2,146,101 |
345,232 |
||
* Derived from audited financial statements included in the Company's Form 20-F dated April 25, 2014. |
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 |
|||||||
March 31, 2013 |
December 31, 2013 |
March 31, 2014 |
March 31, 2014 |
||||
RMB |
RMB |
RMB |
US$ |
||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
||||
Revenues: |
|||||||
Net advertising revenues |
166,446 |
263,940 |
234,925 |
37,791 |
|||
Paid service revenues |
114,931 |
136,169 |
122,224 |
19,662 |
|||
Total revenues |
281,377 |
400,109 |
357,149 |
57,453 |
|||
Cost of revenues |
(143,854) |
(184,645) |
(173,871) |
(27,970) |
|||
Gross profit |
137,523 |
215,464 |
183,278 |
29,483 |
|||
Operating expenses: |
|||||||
Sales and marketing expenses |
(55,092) |
(88,062) |
(76,733) |
(12,343) |
|||
General and administrative expenses |
(24,832) |
(27,093) |
(32,702) |
(5,261) |
|||
Technology and product development expenses |
(25,625) |
(29,377) |
(30,787) |
(4,953) |
|||
Total operating expenses |
(105,549) |
(144,532) |
(140,222) |
(22,557) |
|||
Income from operations |
31,974 |
70,932 |
43,056 |
6,926 |
|||
Other income: |
|||||||
Interest income |
6,891 |
9,522 |
12,025 |
1,935 |
|||
Foreign currency exchange gain/(loss) |
2,173 |
4,537 |
(6,868) |
(1,105) |
|||
Gain on disposition of a subsidiary and acquisition of equity investment |
- |
- |
17,693 |
2,846 |
|||
Loss from equity investment |
- |
- |
(1,541) |
(248) |
|||
Others, net |
3,286 |
7,537 |
5,790 |
932 |
|||
Income before tax |
44,324 |
92,528 |
70,155 |
11,286 |
|||
Income tax expense |
(5,120) |
(11,192) |
(8,597) |
(1,383) |
|||
Net income |
39,204 |
81,336 |
61,558 |
9,903 |
|||
Net loss attributable to noncontrolling interests |
- |
1,531 |
603 |
97 |
|||
Net income attributable to Phoenix New Media Limited |
39,204 |
82,867 |
62,161 |
10,000 |
|||
Net income |
39,204 |
81,336 |
61,558 |
9,903 |
|||
Other comprehensive loss, net of tax: foreign |
(2,326) |
(5,598) |
7,151 |
1,150 |
|||
Comprehensive income |
36,878 |
75,738 |
68,709 |
11,053 |
|||
Comprehensive loss attributable to noncontrolling interests |
- |
1,531 |
603 |
97 |
|||
Comprehensive income attributable to Phoenix New Media Limited |
36,878 |
77,269 |
69,312 |
11,150 |
|||
Net income attributable to Phoenix New Media Limited |
39,204 |
82,867 |
62,161 |
10,000 |
|||
Net income per Class A and Class B ordinary share: |
|||||||
Basic |
0.06 |
0.14 |
0.10 |
0.02 |
|||
Diluted |
0.06 |
0.13 |
0.10 |
0.02 |
|||
Net income per ADS (1 ADS represents 8 Class A ordinary shares): |
|||||||
Basic |
0.51 |
1.10 |
0.83 |
0.13 |
|||
Diluted |
0.50 |
1.07 |
0.80 |
0.13 |
|||
Weighted average number of Class A and Class B ordinary shares used in computing net income per share: |
|||||||
Basic |
615,007,701 |
601,035,630 |
601,939,197 |
601,939,197 |
|||
Diluted |
630,226,349 |
620,196,981 |
622,073,409 |
622,073,409 |
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 March 31, 2013 |
Three Months Ended December 31, 2013 |
Three Months Ended March 31, 2014 |
|||||||||||||||||||||||||
GAAP |
Non-GAAP Adjustments |
Non-GAAP |
GAAP |
Non-GAAP Adjustments |
Non-GAAP |
GAAP |
Non-GAAP Adjustments |
Non-GAAP |
|||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|||||||||||||||||||
Gross profit |
137,523 |
606 |
(1) |
138,129 |
215,464 |
2,827 |
(1) |
218,291 |
183,278 |
2,971 |
(1) |
186,249 |
|||||||||||||||
Gross margin |
48.9% |
49.1% |
53.9% |
54.6% |
51.3% |
52.1% |
|||||||||||||||||||||
Income from operations |
31,974 |
(544) |
(1) |
31,430 |
70,932 |
9,138 |
(1) |
80,070 |
43,056 |
10,894 |
(1) |
53,950 |
|||||||||||||||
Operating margin |
11.4% |
11.2% |
17.7% |
20.0% |
12.1% |
15.1% |
|||||||||||||||||||||
10,894 |
(1) |
||||||||||||||||||||||||||
1,541 |
(2) |
||||||||||||||||||||||||||
(544) |
(1) |
9,138 |
(1) |
(17,693) |
(3) |
||||||||||||||||||||||
Net income attributable to Phoenix New Media Limited |
39,204 |
(544) |
38,660 |
82,867 |
9,138 |
92,005 |
62,161 |
(5,258) |
56,903 |
||||||||||||||||||
Net margin |
13.9% |
13.7% |
20.7% |
23.0% |
17.4% |
15.9% |
|||||||||||||||||||||
Net income per ADS—diluted |
0.50 |
0.49 |
1.07 |
1.19 |
0.80 |
0.73 |
|||||||||||||||||||||
Weighted average number of ADSs used in computing diluted net income per ADS |
78,778,294 |
78,778,294 |
77,524,623 |
77,524,623 |
77,759,176 |
77,759,176 |
|||||||||||||||||||||
(1) Excludes share-based compensation or (reversal) of share-based compensation. |
|||||||||||||||||||||||||||
(2) Excludes loss from equity investment |
|||||||||||||||||||||||||||
(3) Excludes gain on disposition of a subsidiary and acquisition of equity investment |
|||||||||||||||||||||||||||
Details of cost of revenues are as follows: |
|||||||||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||||||||
March 31, 2013 |
December 31, 2013 |
March 31, 2014 |
March 31, 2014 |
||||||||||||||||||||||||
RMB |
RMB |
RMB |
US$ |
||||||||||||||||||||||||
(Amounts in thousands) |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|||||||||||||||||||||||
Revenue sharing fees |
49,513 |
56,140 |
53,680 |
8,635 |
|||||||||||||||||||||||
Content and operational costs |
57,082 |
80,246 |
74,079 |
11,917 |
|||||||||||||||||||||||
Bandwidth costs |
18,442 |
19,579 |
20,791 |
3,345 |
|||||||||||||||||||||||
Sales taxes and surcharges |
18,817 |
28,680 |
25,321 |
4,073 |
|||||||||||||||||||||||
Total cost of revenues |
143,854 |
184,645 |
173,871 |
27,970 |
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SOURCE