Company News
Third Quarter 2011 Highlights
- Total revenues increased by 81.3% year-over-year to
RMB270.8 million (US$42.5 million ), driven by a 155.8% increase in net advertising revenues and a 44.6% increase in paid service revenues. - Net income attributable to
Phoenix New Media increased by 131.3% year-over-year toRMB56.8 million (US$8.9 million ). - Adjusted net income attributable to
Phoenix New Media (1) increased by 109.7% year-over-year toRMB61.5 million (US$9.6 million ). - Net income per diluted ADS(2) was
RMB0.70 (US$0.11) . - Adjusted net income attributable to
Phoenix New Media per diluted ADS wasRMB0.76 (US$0.12) .
Mr.
Third Quarter 2011 Financial Results
REVENUES
Total revenues for the third quarter of 2011 increased by 81.3% to
Net advertising revenues, calculated net of advertising agency service fees, for the third quarter of 2011 increased by 155.8% to
Paid service revenues for the third quarter of 2011 increased by 44.6% to
COST OF REVENUES AND GROSS PROFIT
Cost of revenues for the third quarter of 2011 increased to
Gross profit for the third quarter of 2011 increased by 81.6% to
OPERATING EXPENSES AND INCOME FROM OPERATIONS
Total operating expenses for the third quarter of 2011 increased to
Income from operations for the third quarter of 2011 increased by 65.1% to
Adjusted income from operations, which excludes the impact of share-based compensation expense, for the third quarter of 2011 increased by 55.1% to
FOREIGN CURRENCY EXCHANGE GAIN AND INTEREST INCOME
Foreign currency exchange gain for the third quarter of 2011 increased to
NET INCOME
Net income attributable to
Net income attributable to ordinary shareholders for the third quarter of 2011 was
Adjusted net income attributable to
In the third quarter of 2011, the Company's weighted average number of ADS used in computing diluted income per ADS was 81,047,510.
(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 financial statements. |
|
(2) "ADS" is American Depositary Share. Each ADS represents eight ordinary shares. |
|
(3) MIVAS includes Internet VAS, which was previously a separate component of MIVAS. |
|
Business Outlook
For the fourth quarter of 2011, 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 |
|
China: |
4001200654 |
|
Hong Kong: |
+85230512745 |
|
United States: |
+16462543515 |
|
United States Toll Free: |
+18555008701 |
|
Conference ID: |
26227986 |
|
A replay of the call will be available through
International: |
+61282355000 |
|
China: |
4006920026 |
|
United States: |
+17183541232 |
|
United States Toll Free: |
+18662145335 |
|
Conference ID: |
26227986 |
|
A live and archived webcast of the conference call will also be available at the Company's IR website at http://ir.ifeng.com/ or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=242799&eventID=4241008.
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
The reporting currency of the Company is Renminbi ("RMB") but, for the convenience of the reader, the amounts for the three months ended
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:
Tel: +86(10)8445-8883
Email: ir@ifeng.com
Tel: +1 (646) 405-4883
Email: Jeremy.peruski@icrinc.com
Phoenix New Media Limited |
||||||||||
Unaudited Condensed Consolidated Balance Sheets |
||||||||||
(Amounts in thousands) |
||||||||||
December 31, |
September 30, |
September 30, |
||||||||
2010 |
2011 |
2011 |
||||||||
RMB |
RMB |
US$ |
||||||||
ASSETS |
||||||||||
Current assets: |
||||||||||
Cash and cash equivalents |
287,173 |
412,683 |
64,704 |
|||||||
Term deposit |
- |
775,980 |
121,665 |
|||||||
Accounts receivable, net |
77,043 |
172,191 |
26,998 |
|||||||
Amounts due from related parties |
16,487 |
58,293 |
9,140 |
|||||||
Prepayment and other current assets |
19,389 |
32,607 |
5,112 |
|||||||
Deferred tax assets |
613 |
10,727 |
1,682 |
|||||||
Total current assets |
400,705 |
1,462,481 |
229,301 |
|||||||
Non current assets: |
||||||||||
Property and equipment, net |
24,111 |
36,034 |
5,650 |
|||||||
Intangible assets, net |
2,363 |
4,516 |
708 |
|||||||
Note receivable |
17,600 |
2,470 |
387 |
|||||||
Other non-current assets |
2,483 |
2,990 |
469 |
|||||||
Total non-current assets |
46,557 |
46,010 |
7,214 |
|||||||
Total assets |
447,262 |
1,508,491 |
236,515 |
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||
Current liabilities: |
||||||||||
Accounts payable |
54,115 |
103,895 |
16,290 |
|||||||
Amounts due to related parties |
43,477 |
26,960 |
4,227 |
|||||||
Advances from customers |
7,781 |
10,427 |
1,635 |
|||||||
Taxes payable |
9,970 |
23,311 |
3,655 |
|||||||
Salary and welfare payable |
26,064 |
48,925 |
7,671 |
|||||||
Accrued expenses and other current liabilities |
7,147 |
32,276 |
5,061 |
|||||||
Total current liabilities |
148,554 |
245,794 |
38,539 |
|||||||
Long-term liabilities |
3,483 |
5,391 |
845 |
|||||||
Total liabilities |
152,037 |
251,185 |
39,384 |
|||||||
Mezzanine equity |
||||||||||
Series A convertible redeemable preferred shares |
390,183 |
- |
- |
|||||||
Shareholders' equity/(deficit): |
||||||||||
Ordinary shares |
25,140 |
41,826 |
6,558 |
|||||||
Additional paid-in capital |
- |
1,802,359 |
282,590 |
|||||||
Statutory reserves |
10,314 |
10,314 |
1,617 |
|||||||
Accumulated deficit |
(129,411) |
(577,137) |
(90,489) |
|||||||
Accumulated other comprehensive loss |
(1,001) |
(20,056) |
(3,145) |
|||||||
Total shareholders' equity/(deficit) |
(94,958) |
1,257,306 |
197,131 |
|||||||
Total liabilities, mezzanine equity and shareholders' equity |
447,262 |
1,508,491 |
236,515 |
|||||||
Phoenix New Media Limited |
||||||||||||||||||||||
Unaudited Condensed Consolidated Statements of Operations |
||||||||||||||||||||||
(Amounts in thousands, except for number of shares and ADS and per share and per ADS data) |
||||||||||||||||||||||
For the three months ended |
For the nine months ended |
|||||||||||||||||||||
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
||||||||||||||||
2010 |
2011 |
2011 |
2011 |
2010 |
2011 |
2011 |
||||||||||||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||||||||||
Revenues: |
||||||||||||||||||||||
Net advertising revenues |
49,326 |
113,985 |
126,172 |
19,782 |
129,335 |
315,387 |
49,449 |
|||||||||||||||
Paid service revenues |
100,028 |
113,646 |
144,599 |
22,672 |
241,089 |
354,753 |
55,621 |
|||||||||||||||
Total revenues |
149,354 |
227,631 |
270,771 |
42,454 |
370,424 |
670,140 |
105,070 |
|||||||||||||||
Cost of revenues |
(83,920) |
(123,653) |
(151,912) |
(23,818) |
(204,227) |
(390,440) |
(61,217) |
|||||||||||||||
Gross profit |
65,434 |
103,978 |
118,859 |
18,636 |
166,197 |
279,700 |
43,853 |
|||||||||||||||
Operating expenses: |
||||||||||||||||||||||
Sales and marketing expenses |
(21,717) |
(34,285) |
(36,890) |
(5,784) |
(50,770) |
(113,166) |
(17,743) |
|||||||||||||||
General and administrative expenses |
(8,237) |
(16,640) |
(19,716) |
(3,091) |
(24,792) |
(55,679) |
(8,730) |
|||||||||||||||
Technology and product development expenses |
(8,519) |
(13,590) |
(17,732) |
(2,780) |
(21,457) |
(51,114) |
(8,014) |
|||||||||||||||
Total operating expenses |
(38,473) |
(64,515) |
(74,338) |
(11,655) |
(97,019) |
(219,959) |
(34,487) |
|||||||||||||||
Income from operations |
26,961 |
39,463 |
44,521 |
6,981 |
69,178 |
59,741 |
9,366 |
|||||||||||||||
Other income/(expenses): |
||||||||||||||||||||||
Interest income |
207 |
712 |
3,766 |
590 |
416 |
4,699 |
737 |
|||||||||||||||
Foreign currency exchange gain/(loss) |
185 |
(223) |
13,812 |
2,166 |
177 |
13,418 |
2,104 |
|||||||||||||||
Others, net |
497 |
314 |
1,010 |
158 |
706 |
1,967 |
308 |
|||||||||||||||
Net income before tax |
27,850 |
40,266 |
63,109 |
9,895 |
70,477 |
79,825 |
12,515 |
|||||||||||||||
Income taxes expenses |
(3,278) |
(4,033) |
(6,271) |
(983) |
(7,875) |
(12,989) |
(2,037) |
|||||||||||||||
Net income attributable to |
24,572 |
36,233 |
56,838 |
8,912 |
62,602 |
66,836 |
10,478 |
|||||||||||||||
Accretion to convertible redeemable preferred |
(76,557) |
(380,665) |
- |
- |
(185,328) |
(943,268) |
(147,894) |
|||||||||||||||
Income allocation to participating preferred shares |
(10,764) |
(6,172) |
- |
- |
(28,519) |
(6,172) |
(968) |
|||||||||||||||
Net income/(loss) attributable to |
(62,749) |
(350,604) |
56,838 |
8,912 |
(151,245) |
(882,604) |
(138,384) |
|||||||||||||||
Net income/(loss) per ordinary share—basic |
(0.19) |
(0.73) |
0.09 |
0.01 |
(0.46) |
(1.81) |
(0.28) |
|||||||||||||||
Net income/(loss) per ordinary share—diluted |
(0.19) |
(0.73) |
0.09 |
0.01 |
(0.46) |
(1.81) |
(0.28) |
|||||||||||||||
Weighted average number of ordinary shares used |
325,351,289 |
483,260,125 |
610,872,332 |
610,872,332 |
325,318,258 |
487,159,760 |
487,159,760 |
|||||||||||||||
Weighted average number of ordinary shares used |
325,351,289 |
483,260,125 |
648,380,080 |
648,380,080 |
325,318,258 |
487,159,760 |
487,159,760 |
|||||||||||||||
Net income/(loss) per ADS—basic |
(1.54) |
(5.80) |
0.74 |
0.12 |
(3.72) |
(14.49) |
(2.27) |
|||||||||||||||
Net income/(loss) per ADS—diluted |
(1.54) |
(5.80) |
0.70 |
0.11 |
(3.72) |
(14.49) |
(2.27) |
|||||||||||||||
Weighted average number of ADS used in |
40,668,911 |
60,407,516 |
76,359,042 |
76,359,042 |
40,664,782 |
60,894,970 |
60,894,970 |
|||||||||||||||
Weighted average number of ADS used in |
40,668,911 |
60,407,516 |
81,047,510 |
81,047,510 |
40,664,782 |
60,894,970 |
60,894,970 |
|||||||||||||||
Reconciliations from net income/(loss) attributable to PNM to adjusted net income attributable to PNM (non-GAAP), adjusted net margin (non-GAAP) and adjusted net income attributable |
||||||||||||||||||||||
For the three months ended |
For the nine months ended |
|||||||||||||||||||||
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
||||||||||||||||
2010 |
2011 |
2011 |
2011 |
2010 |
2011 |
2011 |
||||||||||||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||||||||||
(Amounts in thousands) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||||||||||||
Net income attributable to PNM |
24,572 |
36,233 |
56,838 |
8,912 |
62,602 |
66,836 |
10,478 |
|||||||||||||||
Add back: Share-based compensation expenses |
4,749 |
8,604 |
4,651 |
729 |
9,644 |
61,289 |
9,609 |
|||||||||||||||
Adjusted net income attributable to PNM (non-GAAP) |
29,321 |
44,837 |
61,489 |
9,641 |
72,246 |
128,125 |
20,087 |
|||||||||||||||
Adjusted net margin (non-GAAP) |
19.6% |
19.7% |
22.7% |
22.7% |
19.5% |
19.1% |
19.1% |
|||||||||||||||
Adjusted net income attributable to PNM per ADS |
0.45 |
0.61 |
0.76 |
0.12 |
1.12 |
1.74 |
0.27 |
|||||||||||||||
Weighted average number of ADS used in |
64,526,135 |
73,676,015 |
81,047,510 |
81,047,510 |
64,785,561 |
73,834,490 |
73,834,490 |
|||||||||||||||
Share-based compensation expenses included in: |
||||||||||||||||||||||
For the three months ended |
For the nine months ended |
|||||||||||||||||||||
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
||||||||||||||||
2010 |
2011 |
2011 |
2011 |
2010 |
2011 |
2011 |
||||||||||||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||||||||||
(Amounts in thousands) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||||||||||||
Cost of revenues |
366 |
1,679 |
1,188 |
186 |
694 |
18,503 |
2,900 |
|||||||||||||||
Sales and marketing expenses |
2,667 |
1,417 |
1,156 |
181 |
3,747 |
16,996 |
2,665 |
|||||||||||||||
General and administrative expenses |
1,507 |
4,814 |
1,678 |
263 |
4,684 |
15,540 |
2,437 |
|||||||||||||||
Technology and product development expenses |
209 |
694 |
629 |
99 |
519 |
10,250 |
1,607 |
|||||||||||||||
Total share-based compensation expenses |
4,749 |
8,604 |
4,651 |
729 |
9,644 |
61,289 |
9,609 |
|||||||||||||||
Details of cost of revenue is as follows: |
||||||||||||||||||||||
For the three months ended |
For the nine months ended |
|||||||||||||||||||||
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
||||||||||||||||
2010 |
2011 |
2011 |
2011 |
2010 |
2011 |
2011 |
||||||||||||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||||||||||
(Amounts in thousands) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||||||||||||
Revenue sharing fees |
48,657 |
65,462 |
89,100 |
13,970 |
109,228 |
207,414 |
32,520 |
|||||||||||||||
Content and operational costs |
22,751 |
35,731 |
37,920 |
5,945 |
62,682 |
118,322 |
18,552 |
|||||||||||||||
Bandwidth costs |
4,929 |
7,879 |
9,489 |
1,488 |
13,282 |
25,118 |
3,938 |
|||||||||||||||
Business tax and surcharages |
7,583 |
14,581 |
15,403 |
2,415 |
19,035 |
39,586 |
6,207 |
|||||||||||||||
Total cost of revenue |
83,920 |
123,653 |
151,912 |
23,818 |
204,227 |
390,440 |
61,217 |
|||||||||||||||
SOURCE