omniture

Phoenix New Media Reports Third Quarter 2017 Unaudited Financial Results

Live Conference Call to be Held at 8:00 PM U.S. Eastern Time on November 13, 2017
2017-11-14 05:45 1009

BEIJING, Nov. 14, 2017 /PRNewswire/ -- Phoenix New Media Limited (NYSE: FENG) ("Phoenix New Media", "ifeng" or the "Company"), a leading new media company in China, today announced its unaudited financial results for the third quarter ended September 30, 2017.

"In the third quarter of 2017, we not only delivered solid financial and operating performance, but also achieved several important milestones," stated Mr. Shuang Liu, CEO of Phoenix New Media. "Among others, Yidian, a company in which we invested and accounted for as available-for-sale investments, received the License for Internet News Information Service, which is the first license  issued by the Cyberspace Administration of China that covers PC, mobile and we-media platforms since new regulations in China came into effect on June 1, 2017. This license will allow Yidian to differentiate and gain competitive advantages over its peers, especially on content acquisition on its we-media platform Yidianhao. The license also fulfills a prerequisite for an equity investment in Yidian by Long De Cheng Zhang Culture Communication (Tianjin) Co., Ltd., which together with the other two investors that we discussed in the second quarter, are expected to invest approximately US$112.1 million in total at an estimated transaction valuation of Yidian of about US$1.0 billion. We are very pleased to have finalized this round of investments as certain major terms, including the valuation, were negotiated late last year.

We also further executed our content strategy during the third quarter. We continued to be a leading news distributor in China of major current affairs around the world. According to a report from iResearch, during the 19th National Congress of the Communist Party of China, the growth rate of weekly active users of our iFeng News App surpassed all of our peers and we also ranked first on the PC platform based on the number of page views of featured stories. 

Looking ahead, we will remain focused on market share expansion. By leveraging our professional journalism, cutting-edge technology, extensive partnership resources as well as our branding power, we believe we can maintain our leading position in the highly competitive market."

Ms. Betty Ho, CFO of Phoenix New Media, further stated, "We are delighted to have strong financial results this quarter. Net advertising revenues increased by 17.0% year-over-year to RMB363.1 million, primarily driven by a 50.0% year-over-year increase in our mobile advertising revenues. In particular, revenues from our programmatic advertising showed robust year-over-year growth of 106.0% to RMB142.1 million during the third quarter, mainly resulted from our strong operations and product optimization. Non-GAAP net income attributable to Phoenix New Media increased by 38.9% year-over-year to RMB34.4 million. We are very pleased with the results we achieved during the third quarter and expect our mobile advertising business will continue to grow in line with the industry trend. On the other hand, in order to expand our market share, we need to further invest in traffic acquisition while adopting strict cost control measures and closely monitoring the investment return of our products."

Third Quarter 2017 Financial Results

REVENUES

Total revenues for the third quarter of 2017 increased by 18.2% to RMB425.6 million (US$64.0 million) from RMB360.0 million in the third quarter of 2016.

Net advertising revenues (net of advertising agency service fees) for the third quarter of 2017 increased by 17.0% to RMB363.1 million (US$54.6 million) from RMB310.4 million in the third quarter of 2016, which was primarily attributable to a 50.0% year-over-year increase in mobile advertising revenues and partially offset by a 11.8% year-over-year decrease in PC advertising revenues.

Paid services revenues[1] for the third quarter of 2017 increased by 25.9% to RMB62.4 million (US$9.4 million) from RMB49.6 million in the third quarter of 2016. Revenues from digital entertainment[2] for the third quarter of 2017 increased by 41.8% to RMB52.6 million (US$7.9 million) from RMB37.1 million in the third quarter of 2016. The increase was due to a 51.5% increase in digital reading revenue to RMB 17.2 million (US$2.6 million), which mainly resulted from stronger demand and the Company's strategic expansion efforts, and a 37.5% increase in the MVAS revenues related to certain short-term new business with telecom operators. Revenues from games and others[3] for the third quarter of 2017 decreased by 21.3% to RMB9.8 million (US$1.5 million) from RMB12.5 million in the third quarter of 2016, which was primarily attributable to a decrease in revenues generated from web-based games operated on the Company's own platform.

COST OF REVENUES

Cost of revenues for the third quarter of 2017 increased by 2.9% to RMB188.2 million (US$28.3 million) from RMB182.9 million in the third quarter of 2016, primarily attributable to an increase in revenue sharing fees and sales taxes and surcharges.

  • Content and operational costs for the third quarter of 2017 decreased to RMB110.5 million (US$16.6 million) from RMB119.5 million in the third quarter of 2016, primarily attributable to a decrease in advertisement-related content production cost and the Company's strict control of general operation costs.
  • Revenue sharing fees to telecom operators and channel partners for the third quarter of 2017 increased to RMB27.9 million (US$4.2 million) from RMB16.6 million in the third quarter of 2016, primarily attributable to an increase in the sales of MVAS products.
  • Bandwidth costs for the third quarter of 2017 decreased to RMB14.1 million (US$2.1 million) from RMB16.4 million in the third quarter of 2016, primarily due to the decrease in bandwidth purchase price as a result of intense competition.
  • Sales taxes and surcharges for the third quarter of 2017 increased to RMB35.7 million (US$5.4 million) from RMB30.4 million in the third quarter of 2016.
  • Share-based compensation included in cost of revenues was RMB0.9 million (US$0.1 million) in the third quarter of 2017, as compared to negative RMB5.1 million in the third quarter of 2016 resulting from the increase of estimated forfeiture rate of share-based awards based on the actual forfeiture rate in the quarter.

GROSS PROFIT

Gross profit for the third quarter of 2017 increased by 34.0% to RMB237.4 million (US$35.7 million) from RMB177.1 million in the third quarter of 2016. Gross margin for the third quarter of 2017 increased to 55.8% from 49.2% in the third quarter of 2016. The increase in gross margin was primarily attributable to the increase of revenues and decrease of certain cost of revenues as explained above.

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 reconciling 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 for the third quarter of 2017, which excluded share-based compensation, increased to 56.0% from 47.8% in the third quarter of 2016.

OPERATING EXPENSES AND INCOME FROM OPERATIONS

Total operating expenses for the third quarter of 2017 increased by 34.7% to RMB201.9 million (US$30.3 million) from RMB149.9 million in the third quarter of 2016, primarily attributable to an increase in mobile traffic acquisition expenses, which was partially offset by a decrease in bad debt provision primarily due to the collection of RMB8.3 million of previously fully-reserved receivables in the third quarter of 2017. Share-based compensation included in operating expenses was RMB1.5 million (US$0.2 million) in the third quarter of 2017, as compared to negative RMB3.1 million in the third quarter of 2016. The increase in share-based compensation was primarily due to negative share-based compensation expense recognized in the third quarter of 2016 reflecting an increase of estimated forfeiture rate of share-based awards based on the actual forfeiture rate in that quarter.

Income from operations for the third quarter of 2017 increased by 30.3% to RMB35.5 million (US$5.3 million) from RMB27.2 million in the third quarter of 2016. Operating margin for the third quarter of 2017 increased to 8.3% from 7.6% in the third quarter of 2016, which was primarily attributable to the increase in gross profit and partially offset by the increase in mobile traffic acquisition expenses.

Non-GAAP income from operations for the third quarter of 2017, which excluded share-based compensation, increased by 99.1% to RMB37.9 million (US$5.7 million) from RMB19.0 million in the third quarter of 2016. Non-GAAP operating margin for the third quarter of 2017, which excluded share-based compensation, increased to 8.9% from 5.3% in the third quarter of 2016.

OTHER INCOME/(LOSS)

Other income/(loss) reflects interest income, interest expense, foreign currency exchange gain/(loss), gain/(loss) from equity investments, including impairments, and others, net[4]. Total other income for the third quarter of 2017 was RMB6.2 million (US$0.9 million), as compared to RMB6.7 million in the third quarter of 2016.

  • Interest income for the third quarter of 2017 increased to RMB14.9 million (US$2.2 million) from RMB7.9 million in the third quarter of 2016, which was mainly due to the increase of interest bearing investments and receivables in the third quarter of 2017 as compared to that of 2016.
  • Interest expense for the third quarter of 2017 increased to RMB5.7 million (US$0.9 million), from RMB1.6 million in the third quarter of 2016, which was primarily due to the increase in outstanding short-term bank loans in the third quarter of 2017 as compared to that of 2016.
  • Foreign currency exchange loss for the third quarter of 2017 was RMB8.9 million (US$1.3 million), as compared to foreign currency exchange gain of RMB0.6 million in the third quarter of 2016, which was mainly caused by the appreciation of Renminbi against US dollars in the third quarter of 2017.
  • Gain from equity investments for the third quarter of 2017, including impairments, was RMB1.0 million (US$0.1 million), as compared to loss from equity investments of RMB1.2 million in the third quarter of 2016.
  • Others, net, for the third quarter of 2017 increased to RMB4.9 million (US$0.7 million), from RMB1.0 million in the third quarter of 2016, which was primarily attributable to the government subsidies received in the third quarter of 2017.

NET INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED

Net income attributable to Phoenix New Media Limited for the third quarter of 2017 increased by 3.8 % to RMB32.9 million (US$4.9 million) from RMB31.7 million in the third quarter of 2016. Net margin for the third quarter of 2017 decreased to 7.7% from 8.8% in the third quarter of 2016. Net income per diluted ADS[5] in the third quarter of 2017 increased 3.7% to RMB0.46 (US$0.07) from RMB0.44 in the third quarter of 2016.

Non-GAAP net income attributable to Phoenix New Media Limited for the third quarter of 2017, which excluded share-based compensation and gain/(loss) from equity investments, including impairments, increased by 38.9% to RMB34.4 million (US$5.2 million) from RMB24.8 million in the third quarter of 2016. Non-GAAP net margin for the third quarter of 2017 increased to 8.1% from 6.9% in the third quarter of 2016. Non-GAAP net income per diluted ADS in the third quarter of 2017 increased by 38.8% to RMB0.48 (US$0.07) from RMB0.34 in the third quarter of 2016.

For the third quarter of 2017, the Company's weighted average number of ADSs used in the computation of diluted net income per ADS was 72,227,027. As of September 30, 2017, the Company had a total of 573,879,193 ordinary shares outstanding, or the equivalent of 71,734,899 ADSs.

CERTAIN BALANCE SHEET ITEMS

As of September 30, 2017, the Company's cash and cash equivalents, term deposits and short term investments and restricted cash were RMB1.28 billion (US$191.9 million). Restricted cash represents deposits placed as security for banking facilities granted to the Company, which are restricted in their withdrawal or usage.

Business Outlook

For the fourth quarter of 2017, the Company expects its total revenues to be between RMB433.0 million and RMB448.0 million. Net advertising revenues are expected to be between RMB386.2 million and RMB396.2 million. Paid services revenues are expected to be between RMB46.8 million and RMB51.8 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 13, 2017 (November 14, 2017 at 9:00 a.m. Beijing/Hong Kong time) to discuss its third quarter 2017 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:

7682549

A replay of the call will be available through November 20, 2017 by using the dial-in numbers and conference ID below:

International:

+61290034211

Mainland China:

4006322162

Hong Kong:

+85230512780

United States:

+16462543697

Conference ID:

7682549

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 non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income attributable to Phoenix New Media Limited, non-GAAP net margin and non-GAAP net income per diluted ADS, each of which is a non-GAAP financial measure. Non-GAAP gross profit is gross profit excluding share-based compensation. Non-GAAP gross margin is non-GAAP gross profit divided by total revenues. Non-GAAP income from operations is income from operations excluding share-based compensation. Non-GAAP operating margin is non-GAAP income from operations divided by total revenues. Non-GAAP net income attributable to Phoenix New Media Limited is net income attributable to Phoenix New Media Limited excluding share-based compensation and gain from equity investments, including impairments. Non-GAAP net margin is non-GAAP net income attributable to Phoenix New Media Limited divided by total revenues. Non-GAAP net income per diluted ADS is non-GAAP 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 aforementioned non-GAAP to GAAP reconciling items add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with the related GAAP financial measures 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 these non-GAAP financial measures to evaluate its business allows both management and investors to assess the Company's performance against its competitors and ultimately monitor its capacity to generate returns for investors. The Company also believes that these non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of items like share-based compensation and loss from equity investments, including impairments, which have been and will continue to be significant and recurring in its business. However, the use of these non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using these non-GAAP financial measures is that they do not include all items that impact the Company's gross profit, income from operations and net income attributable to Phoenix New Media Limited for the period. In addition, because these non-GAAP financial measures are not calculated 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 these non-GAAP financial measures in isolation from, or as an alternative to, the financial measures prepared in accordance with 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 RMB6.6533 to US$1.00, the noon buying rate in effect on September 30, 2017 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 Internet platform, including PC and mobile, 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 through their PCs and mobile devices. Phoenix New Media's platform includes its PC channel, consisting of ifeng.com website, which comprises interest-based verticals and interactive services; its mobile channel, consisting of mobile news applications, mobile video application, digital reading application, fashion application and mobile Internet website; and its operations with the telecom operators that provides 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
Nicole Shan
Email: investorrelations@ifeng.com

ICR, Inc.
Rose Zu
Tel: +1 (646) 405-4883
Email: investorrelations@ifeng.com

[1] Prior to 2016, the Company's paid services revenues comprised mainly of revenues generated from MVAS and games and others. Digital reading was previously classified under "games and others." In order to align with the Company's overall strategies, digital reading was re-classified from "games and others", and digital reading together with MVAS was determined as "digital entertainment" starting from the financial statements as of and for the year ended December 31, 2016. Accordingly, the revenues from digital entertainment and the revenues from games and others for the first three quarters of 2016 have been reclassified.

[2] Digital entertainment includes mobile value-added services delivered through telecom operators' platforms, or MVAS, and digital reading.

[3] Games and others include web-based and mobile games, and other online and mobile paid services through the Company's own platforms.

[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.

 

Phoenix New Media Limited

Condensed Consolidated Balance Sheets

(Amounts in thousands)


December 31,


September30,


Septembe30,

2016

2017


2017


RMB


RMB


US$


Audited*


Unaudited


Unaudited

ASSETS






Current assets:






Cash and cash equivalents

202,694


337,696


50,756

Term deposits and short term investments

781,298


574,799


86,393

Restricted cash

354,602


364,167


54,735

Accounts receivable, net

405,033


401,762


60,385

Amounts due from related parties

156,260


281,959


42,379

Prepayment and other current assets

64,069


70,733


10,631

Convertible loans due from a related party

104,429


103,152


15,504

Total current assets

2,068,385


2,134,268


320,783

Non-current assets:






Property and equipment, net

72,087


69,590


10,459

Intangible assets, net

9,475


7,507


1,128

Available-for-sale investments

939,432


1,192,556


179,243

Equity investments, net

8,809


10,477


1,575

Deferred tax assets**

54,307


59,448


8,935

Other non-current assets

16,047


12,874


1,935

Total non-current assets

1,100,157


1,352,452


203,275

Total assets

3,168,542


3,486,720


524,058

LIABILITIES AND SHAREHOLDERS' EQUITY






Current liabilities:






Short-term bank loans

358,602


357,954


53,801

Accounts payable

260,902


231,150


34,742

Amounts due to related parties

18,720


21,970


3,302

Advances from customers

27,825


69,316


10,417

Taxes payable

75,652


82,131


12,344

Salary and welfare payable

130,329


126,765


19,053

Accrued expenses and other current liabilities

111,049


103,383


15,540

Total current liabilities

983,079


992,669


149,199

Non-current liabilities:






Deferred tax liabilities

1,312


1,312


197

Long-term liabilities

21,723


22,004


3,307

Total non-current liabilities

23,035


23,316


3,504

Total liabilities

1,006,114


1,015,985


152,703

Shareholders' equity:






Phoenix New Media Limited shareholders' equity:






Class A ordinary shares

16,843


16,952


2,548

Class B ordinary shares

22,053


22,053


3,315

Additional paid-in capital

1,555,511


1,576,166


236,900

Statutory reserves

77,946


77,946


11,715

Retained earnings

195,069


220,720


33,175

Accumulated other comprehensive income

298,346


562,626


84,563

Total Phoenix New Media Limited shareholders'
    equity

2,165,768


2,476,463


372,216

Noncontrolling interests

(3,340)


(5,728)


(861)

Total shareholders' equity

2,162,428


2,470,735


371,355

Total liabilities and shareholders' equity

3,168,542


3,486,720


524,058


* Derived from audited financial statements included in the Company's Form 20-F dated April 28, 2017.

** In 2017, the Company adopted the guidance of ASU 2015-17 issued by FASB in November 2015, which
requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. Pursuant to the guidance, the Company retrospectively reclassified RMB54.3 million of deferred tax
assets from current assets to noncurrent assets in the balance sheets as of December 31, 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,


2016


2017


2017


2017


2016


2017


2017


RMB


RMB


RMB


US$


RMB


RMB


US$


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited















Revenues:














  Net advertising revenues

310,439


338,725


363,124


54,578


879,052


942,933


141,724

  Paid service revenues

49,583


54,541


62,436


9,384


153,973


170,372


25,607

Total revenues

360,022


393,266


425,560


63,962


1,033,025


1,113,305


167,331

Cost of revenues

(182,927)


(167,844)


(188,185)


(28,284)


(521,603)


(518,518)


(77,934)

Gross profit

177,095


225,422


237,375


35,678


511,422


594,787


89,397

Operating expenses:














  Sales and marketing expenses

(74,210)


(118,769)


(122,843)


(18,463)


(236,785)


(337,074)


(50,663)

  General and administrative
       expenses

(37,897)


(35,865)


(28,650)


(4,306)


(140,527)


(96,466)


(14,499)

  Technology and product
       development expenses

(37,756)


(45,791)


(50,412)


(7,577)


(120,188)


(140,831)


(21,167)

Total operating expenses

(149,863)


(200,425)


(201,905)


(30,346)


(497,500)


(574,371)


(86,329)

Income from operations

27,232


24,997


35,470


5,332


13,922


20,416


3,068

Other income/(loss):














  Interest income

7,943


13,493


14,922


2,243


24,328


41,073


6,173

  Interest expense

(1,554)


(6,426)


(5,700)


(857)


(3,283)


(18,475)


(2,777)

  Foreign currency exchange
       gain/(loss)

575


(7,890)


(8,878)


(1,334)


1,122


(19,079)


(2,868)

  (Loss)/gain from equity
      investments, including
      impairments

(1,242)


1,127


968


145


(1,747)


1,431


215

  Others, net

1,021


3,066


4,893


735


9,447


9,386


1,411

Income before tax

33,975


28,367


41,675


6,264


43,789


34,752


5,222

  Income tax expense

(2,879)


(4,215)


(9,615)


(1,445)


(4,836)


(11,489)


(1,727)

Net income

31,096


24,152


32,060


4,819


38,953


23,263


3,495

  Net loss attributable to
      noncontrolling interests

599


779


834


125


1,879


2,388


359

Net income attributable to
     Phoenix New Media Limited

31,695


24,931


32,894


4,944


40,832


25,651


3,854

Net income

31,096


24,152


32,060


4,819


38,953


23,263


3,495

  Other comprehensive
      (loss)/income, net of tax:
      fair value remeasurement for
      available-for-sale
      investments

(39,610)


256,588


33,832


5,085


(22,967)


299,311


44,987

  Other comprehensive
      income/(loss), net of tax:
      foreign currency translation
      adjustment

2,920


(12,486)


(18,778)


(2,822)


11,854


(35,031)


(5,265)

Comprehensive (loss)/income

(5,594)


268,254


47,114


7,082


27,840


287,543


43,217

  Comprehensive loss
       attributable to
       noncontrolling interests

599


779


834


125


1,879


2,388


359

Comprehensive (loss)/income
     attributable to Phoenix New
     Media Limited

(4,995)


269,033


47,948


7,207


29,719


289,931


43,576

Net income attributable to
     Phoenix New Media Limited

31,695


24,931


32,894


4,944


40,832


25,651


3,854

Net income per Class A and
     Class B ordinary share:














  Basic

0.06


0.04


0.06


0.01


0.07


0.04


0.01

  Diluted

0.05


0.04


0.06


0.01


0.07


0.04


0.01

Net income per ADS (1 ADS 
    represents 8 Class A ordinary
    shares):














  Basic

0.44


0.35


0.46


0.07


0.57


0.36


0.05

  Diluted

0.44


0.35


0.46


0.07


0.57


0.36


0.05

Weighted average number of
   Class A and Class B ordinary
   shares used in computing net i
   ncome per share:














  Basic

574,124,546


573,948,891


574,372,716


574,372,716


573,401,254


574,091,207


574,091,207

  Diluted

577,432,460


576,815,588


577,816,213


577,816,213


577,056,594


577,578,429


577,578,429

 

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,


2016


2017


2017


2017


2016


2017


2017


RMB


RMB


RMB


US$


RMB


RMB


US$


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited















Revenues:














  Net advertising service

310,439


338,725


363,124


54,578


879,052


942,933


141,724

  Paid service

49,583


54,541


62,436


9,384


153,973


170,372


25,607

Total revenues

360,022


393,266


425,560


63,962


1,033,025


1,113,305


167,331

Cost of revenues














  Net advertising service

151,770


141,459


149,000


22,395


424,035


421,584


63,365

  Paid service

31,157


26,385


39,185


5,889


97,568


96,934


14,569

Total cost of revenues

182,927


167,844


188,185


28,284


521,603


518,518


77,934

Gross profit














  Net advertising service

158,669


197,266


214,124


32,183


455,017


521,349


78,359

  Paid service

18,426


28,156


23,251


3,495


56,405


73,438


11,038

Total gross profit

177,095


225,422


237,375


35,678


511,422


594,787


89,397

 

Phoenix New Media Limited

Condensed Information of Cost of Revenues

(Amounts in thousands)


Three Months Ended


Nine Months Ended


September30,

2016


June 30,

2017


September30,

2017


September30,

2017


September30,

2016


September30,

2017


September30,








2017


RMB


RMB


RMB


US$


RMB


RMB


US$


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited


Unaudited















Revenue sharing fees

16,559


15,052


27,891


4,192


54,687


60,263


9,058

Content and operational costs

119,538


105,984


110,491


16,607


332,178


322,791


48,515

Bandwidth costs

16,404


13,607


14,085


2,117


49,041


42,220


6,346

Sales taxes and surcharges

30,426


33,201


35,718


5,368


85,697


93,244


14,015

Total cost of revenues

182,927


167,844


188,185


28,284


521,603


518,518


77,934

 

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, 2016


Three Months Ended June 30, 2017


Three Months Ended September 30, 2017





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

177,095


(5,115)

(1)

171,980


225,422


1,224

(1)

226,646


237,375


949

(1)

238,324


Gross margin

49.2%




47.8%


57.3%




57.6%


55.8%




56.0%


Income from
operations

27,232


(8,186)

(1)

19,046


24,997


5,460

(1)

30,457


35,470


2,450

(1)

37,920


Operating margin

7.6%




5.3%


6.4%




7.7%


8.3%




8.9%





(8,186)

(1)





5,460

(1)





2,450

(1)






1,242

(2)





(1,127)

(2)





(968)

(2)



Net income
     attributable to
     Phoenix New
     Media Limited

31,695


(6,944)


24,751


24,931


4,333


29,264


32,894


1,482


34,376


Net margin

8.8%




6.9%


6.3%




7.4%


7.7%




8.1%


Net income per
     ADS—diluted

0.44




0.34


0.35




0.41


0.46




0.48


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

72,179,058




72,179,058


72,101,949




72,101,949


72,227,027




72,227,027


(1) Share-based compensation

(2) Loss/(gain) from equity investments, including impairments


View original content:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-third-quarter-2017-unaudited-financial-results-300554744.html

Source: Phoenix New Media Limited
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