Live Conference Call to be Held at
9:00 PM U.S. Eastern Time on
March 13
BEIJING, March 13, 2017 /PRNewswire/ -- Phoenix New Media
Limited (NYSE: FENG), a leading new media company in China ("Phoenix New Media", "ifeng" or the
"Company"), today announced its unaudited financial results for the
fourth quarter and fiscal year ended December 31, 2016.
Fourth Quarter and Fiscal Year 2016 Highlights
- Net advertising revenues for the fourth quarter of 2016
increased by 2.0% to RMB353.2 million
(US$50.9 million) from RMB346.2 million in the same period last
year.
- Paid service revenues for the fourth quarter of 2016 were
RMB58.7 million (US$8.5 million), as compared to RMB84.6 million in the same period last
year.
- Net advertising revenues for fiscal year 2016 were flat at
RMB1.23 billion (US$177.5 million).
- Paid service revenues for fiscal year 2016 were RMB212.7 million (US$30.6
million), as compared to RMB382.7
million in fiscal year 2015.
"We are very pleased to have delivered better than expected top-
and bottom-line results," stated Mr. Shuang
Liu, CEO of Phoenix New Media. "Our solid financial
performance is a testament to the strengthening of our mobile
platforms. In 2016, we made substantial strides in our mobile
strategy as we continued to invest in both the ifeng News app and
Yidian Zixun ("Yidian"[1], a strategic investment of ifeng),
further driving our overall mobile expansion plan. Consequently, we
witnessed significant increase in the Company's mobile advertising
revenues by almost 54% year-over-year. As we continue investing
into our mobile expansion, we will not lose focus of our core
strengths and competencies in professional content creation. By
creating our own live broadcasting brand, Feng Zhibo, we continued
to focus on developing a differentiated, innovative, and industry
leading approach to live broadcasting. We are confident that we are
well positioned to capture market opportunities arising from the
growing demand for media content on major events and current
affairs that are having a growing impact on the global landscape.
With an increasingly competitive industry environment, we expect
this year will be another challenging year for us and our key
objective is to gain market share through user expansion supported
by big data technology and high-quality journalism."
Mr. Ya Li, President of Phoenix New Media, further stated, "As
the industry and our viewers' consumption habits evolve, both ifeng
and Yidian continued to make solid progress in improving our
platform with cutting-edge technologies and high-quality
proprietary content. The total daily active users of Yidian,
including both app and browser, reached over 45 million in
February 2017. We remain focused on
enhancing our collaboration with leading Chinese handset
manufacturers, such as OPPO and Xiaomi for Yidian app, and Huawei
for ifeng News app, to further drive user growth. Looking ahead, we
will continue to deepen these relationships in order to accelerate
both apps' user growth and establish Yidian as the leading
customized content consumption platform in China."
Fourth Quarter 2016 Financial
Results
REVENUES
Total revenues for the fourth quarter of 2016 were RMB411.9 million (US$59.3
million), as compared to RMB430.8
million in the fourth quarter of 2015.
Net advertising revenues (net of advertising agency service
fees) for the fourth quarter of 2016 increased by 2.0% to
RMB353.2 million (US$50.9 million) from RMB346.2 million in the fourth quarter of 2015.
The increase was primarily due to the 22.5% year-over-year growth
in mobile advertising revenues and was partially offset by the 9.2%
year-over-year decrease in PC advertising revenues.
Paid service revenues for the fourth quarter of 2016 were
RMB58.7 million (US$8.5 million), as compared to RMB84.6 million in the fourth quarter of 2015,
primarily due to the 47.9% year-over-year decrease in mobile
value-added services ("MVAS") [2] revenues to RMB31.1 million (US$4.5
million) from RMB59.6 million
in the fourth quarter of 2015. The decrease in MVAS revenues mainly
resulted from the decline in users' demand for services provided
through telecom operators in China, which was consistent with the Company's
expectations given the shrinking demand for such services in
general. Revenues from games and others[3] for the fourth quarter
of 2016 increased by 10.6% to RMB27.7
million (US$4.0 million) from
RMB25.0 million in the fourth quarter
of 2015, which was primarily due to the increase in revenues from
online digital reading.
COST OF REVENUES
Cost of revenues for the fourth quarter of 2016 decreased by
0.9% to RMB205.2 million
(US$29.6 million) from RMB207.0 million in the fourth quarter of 2015,
which was primarily due to the decrease in revenue sharing fees.
Revenue sharing fees to telecom operators and channel partners for
the fourth quarter of 2016 decreased to RMB17.3 million (US$2.5
million) from RMB46.6 million
in the fourth quarter of 2015, which was primarily due to the
decrease in sales of MVAS products. Content and operational costs
for the fourth quarter of 2016 increased to RMB138.6 million (US$20.0
million) from RMB106.6 million
in the fourth quarter of 2015, which was primarily due to the
increase in general operating cost and advertisement-related
content production cost. Bandwidth costs for the fourth quarter of
2016 decreased to RMB15.2 million
(US$2.2 million) from RMB19.7 million in the fourth quarter of 2015.
Sales taxes and surcharges for the fourth quarter of 2016 slightly
decreased to RMB34.1 million
(US$4.9 million) from RMB34.2 million in the fourth quarter of 2015.
Share-based compensation included in cost of revenues was negative
RMB0.9 million (negative US$0.1 million) in the fourth quarter of 2016, as
compared to negative RMB7.3 million
in the fourth quarter of 2015. The change in share-based
compensation was due to the adjustment of the estimated forfeiture
rate of share-based awards in the fourth quarter of 2016, which was
partially offset by the newly granted share-based awards and the
Company's option exchange program implemented in the fourth quarter
of 2016.
GROSS PROFIT
Gross profit for the fourth quarter of 2016 was RMB206.7 million (US$29.8
million), as compared to RMB223.7
million in the fourth quarter of 2015. Gross margin for the
fourth quarter of 2016 was 50.2% as compared to 51.9% in the fourth
quarter of 2015. The decrease in gross margin was primarily due to
the increase in share-based compensation.
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 fourth quarter of 2016 was 49.9%, as compared to 50.2% in
the fourth quarter of 2015.
OPERATING EXPENSES AND INCOME FROM
OPERATIONS
Total operating expenses for the fourth quarter of 2016
decreased by 0.8% to RMB185.2 million
(US$26.7 million) from RMB186.7 million in the fourth quarter of 2015.
Share-based compensation included in operating expenses was
RMB2.5 million (US$0.4 million) in the fourth quarter of 2016, as
compared to RMB1.3 million in the
fourth quarter of 2015. The increase was primarily due to the newly
granted share-based awards and the Company's option exchange
program implemented in the fourth quarter of 2016.
Income from operations for the fourth quarter of 2016 was
RMB21.5 million (US$3.1 million), as compared to RMB37.0 million in the fourth quarter of 2015.
Operating margin for the fourth quarter of 2016 was 5.2%, as
compared to 8.6% in the fourth quarter of 2015. The decrease in
operating margin was mainly due to the increase in
advertisement-related content production cost and mobile traffic
acquisition expenses.
Non-GAAP income from operations for the fourth quarter of 2016,
which excludes share-based compensation, was RMB23.0 million (US$3.3
million), as compared to RMB31.1
million in the fourth quarter of 2015. Non-GAAP operating
margin for the fourth quarter of 2016, which excludes share-based
compensation, was 5.6%, as compared to 7.2% in the fourth quarter
of 2015.
OTHER INCOME/(LOSS)
Other income/(loss) reflects interest income, interest expense,
foreign currency exchange gain/loss, loss from equity investments,
including impairments, gain on the disposal of an equity investment
and acquisition of available-for-sale investments, and others,
net[4]. Total other income for the fourth quarter of 2016 increased
to RMB27.1 million (US$3.9 million) from RMB10.8 million in the fourth quarter of 2015.
Interest income for the fourth quarter of 2016 was RMB10.8 million (US$1.6
million), as compared to RMB7.5
million in the fourth quarter of 2015. Interest expense for
the fourth quarter of 2016 was RMB3.8
million (US$0.5 million), as
compared to RMB0.7 million in the
fourth quarter of 2015. Foreign currency exchange gain for the
fourth quarter of 2016 was RMB8.5
million (US$1.2 million), as
compared to RMB0.7 million in the
fourth quarter of 2015. Loss from equity investments, including
impairments for the fourth quarter of 2016 was RMB0.03 million (US$0.004
million), as compared to RMB9.8
million in the fourth quarter of 2015.
NET INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net income attributable to Phoenix New Media Limited for the
fourth quarter of 2016 was RMB39.8
million (US$5.7 million), as
compared to RMB41.1 million in the
fourth quarter of 2015. Net profit margin for the fourth quarter of
2016 increased to 9.7% from 9.5% in the fourth quarter of 2015. Net
income per diluted ADS[5] in the fourth quarter of 2016 was
RMB0.55 (US$0.08), as compared to RMB0.57 in the fourth quarter of 2015.
Non-GAAP net income attributable to Phoenix New Media Limited
for the fourth quarter of 2016, which excludes share-based
compensation and loss from equity investments, including
impairments was RMB41.4 million
(US$6.0 million), as compared to
RMB44.9 million in the fourth quarter
of 2015. Non-GAAP net profit margin for the fourth quarter of 2016
was 10.0%, as compared to 10.4% in the fourth quarter of 2015.
Non-GAAP net income per diluted ADS in the fourth quarter of 2016
was RMB0.57 (US$0.08), as compared to RMB0.62 in the fourth quarter of 2015.
For the fourth quarter of 2016, the Company's weighted average
number of ADSs used in the computation of diluted net income per
ADS was 72,161,340. As of December 31,
2016, the Company had a total of 572,235,150 ordinary shares
outstanding, or the equivalent of 71,529,394 ADSs.
CERTAIN BALANCE SHEET ITEMS
As of December 31, 2016, the
Company's cash and cash equivalents, term deposits and short term
investments and restricted cash were RMB1.34
billion (US$192.8 million).
Restricted cash represents deposits placed as security for banking
facility granted to the company, which are restricted as to their
withdrawal or usage.
Fiscal Year 2016 Financial
Results
REVENUES
Total revenues for fiscal year 2016 were RMB1.44 billion (US$208.1
million), as compared to RMB1.61
billion in fiscal year 2015.
Net advertising revenues (net of advertising agency service
fees) for fiscal year 2016 were flat at RMB1.23 billion (US$177.5
million), primarily due to the 53.8% year-over-year growth
in mobile advertising revenues, which was offset by the decrease in
PC advertising revenues.
Paid service revenues for fiscal year 2016 decreased by 44.4% to
RMB212.7 million (US$30.6 million) from RMB382.7 million in fiscal year 2015, which was
primarily due to the decrease in revenues generated from mobile
value-added services with telecom operators.
COST OF REVENUES AND GROSS
PROFIT
Cost of revenues for fiscal year 2016 decreased to RMB726.8 million (US$104.7
million) from RMB829.4 million
in fiscal year 2015, which was primarily due to the decrease in
revenue sharing fees. Share-based compensation included in cost of
revenues was negative RMB4.4 million
(negative US$0.6 million) in fiscal
year 2016, as compared to RMB6.3
million in fiscal year 2015. The decrease in share-based
compensation included in cost of revenues was mainly due to
adjustments of the estimated forfeiture rate of share-based awards
in 2016, which was partially offset by the Company's option
exchange program implemented in the fourth quarter of 2016.
Gross profit for fiscal year 2016 was RMB718.1 million (US$103.4
million), as compared to RMB779.8
million in fiscal year 2015. Gross margin for fiscal year
2016 increased to 49.7% from 48.5% in fiscal year 2015, which was
primarily due to the reduction of sales from low gross margin
products in paid services. Non-GAAP gross margin, which excludes
share-based compensation, for fiscal year 2016 increased to 49.4%
from 48.9% in fiscal year 2015.
OPERATING EXPENSES AND INCOME FROM
OPERATIONS
Total operating expenses for fiscal year 2016 decreased to
RMB682.7 million (US$98.3 million) from RMB700.8 million in fiscal year 2015. The
decrease in operating expenses was primarily attributable to the
decrease in general operating expense and was partially offset by
the increase in expenses associated with mobile traffic
acquisition. Share-based compensation included in operating
expenses decreased to RMB6.3 million
(US$0.9 million) in fiscal year 2016
from RMB28.0 million in fiscal year
2015, which was mainly due to adjustments of the estimated
forfeiture rate of share-based awards in 2016 and was partially
offset by the Company's option exchange program implemented in the
fourth quarter of 2016.
Income from operations for fiscal year 2016 was RMB35.4 million (US$5.1
million), as compared to RMB79.0
million in fiscal year 2015. Operating margin for fiscal
year 2016 was 2.4%, as compared to 4.9% in fiscal year 2015, which
was primarily due to the increase in mobile traffic acquisition
expenses.
Non-GAAP income from operations, which excludes share-based
compensation, for fiscal year 2016 was RMB37.3 million (US$5.4
million), as compared to RMB113.3
million in fiscal year 2015. Non-GAAP operating margin for
fiscal year 2016 was 2.6%, as compared to 7.0% in fiscal year 2015,
which was primarily due to the increase in mobile traffic
acquisition expenses.
NET INCOME ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net income attributable to Phoenix New Media Limited for fiscal
year 2016 increased by 9.5% to RMB80.6
million (US$11.6 million) from
RMB73.6 million in fiscal year 2015.
Net profit margin for fiscal year 2016 increased to 5.6% from 4.6%
in fiscal year 2015. Net income per diluted ADS for fiscal year
2016 increased by 10.3% to RMB1.12
(US$0.16) from RMB1.01 in fiscal year 2015.
Non-GAAP net income attributable to Phoenix New Media Limited
for fiscal year 2016, which excludes share-based compensation, loss
from equity investments, including impairments, gain on disposal of
an equity investments and acquisition of available-for-sale
investments, was RMB84.3 million
(US$12.1million), as compared to
RMB145.2 million in fiscal year 2015.
Non-GAAP net profit margin for fiscal year 2016 was 5.8%, as
compared to 9.0% in fiscal year 2015. Non-GAAP net income per
diluted ADS for fiscal year 2016 was RMB1.17 (US$0.17),
as compared to RMB2.00 in fiscal year
2015.
Business Outlook
For the first quarter of 2017, the Company expects its total
revenues to be between RMB285 million and
RMB300 million. Net advertising revenues are expected to be
between RMB239 million and RMB249
million. Paid service revenues are expected to be between
RMB46 million and RMB51 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 9:00 p.m. U.S. Eastern Time on March 13, 2017 (March 14,
2017 at 9:00 a.m. Beijing/Hong
Kong time) to discuss its fourth quarter and fiscal year
2016 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:
|
74732880
|
A replay of the call will be available through March 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:
|
74732880
|
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 profit 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, loss from equity
investments, including impairments and gain on disposal of an
equity investment and acquisition of available-for-sale
investments. Non-GAAP net profit 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 non-cash impact of
share-based compensation and the non-operating impact of gain/loss
from equity investments, including impairments and gain on disposal
of an equity investment and acquisition of available-for-sale
investments, add clarity to the constituent parts of its
performance. The Company reviews non-GAAP net income together with
net income 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 multiple measures to evaluate its
business allows both management and investors to assess the
Company's performance against its competitors. The Company also
believes that non-GAAP financial measures are useful supplemental
information for investors and analysts to assess its operating
performance without the effect of non-cash share-based compensation
and non-operating loss from equity investments, including
impairments and gain on disposal of an equity investment and
acquisition of available-for-sale investments. Share-based
compensation and loss from equity investments, including
impairments have been and will continue to be significant and
recurring in its business. However, the use of non-GAAP financial
measures has material limitations as an analytical tool. One of the
limitations of using non-GAAP financial measures is that they do
not include all items that impact the Company's net income for the
period. In addition, because non-GAAP financial measures are not
measured 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 non-GAAP financial measure 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 RMB6.9430 to US$1.00, the noon buying rate in effect on
December 30, 2016 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 platform across
Internet, mobile and TV channels 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 and through their mobile
devices. Phoenix New Media's platform includes its ifeng.com
channel, consisting of its ifeng.com website and web-based game
platform, its video channel, comprised of its dedicated video
vertical and mobile video services, and its mobile channel,
including its mobile Internet website, mobile applications and
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.
[1] The Company has
accounted for its investments in Yidian as available-for-sale
investments.
[2] 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.
[3] Games and
others include web-based games, online digital reading, content
sales, 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.
|
For investor and media inquiries please contact:
Phoenix New Media Limited
Matthew Zhao
Email: investorrelations@ifeng.com
ICR, Inc.
Vera Tang
Tel: +1 (646) 277-1215
Email: investorrelations@ifeng.com
Phoenix New Media
Limited
|
Condensed
Consolidated Balance Sheets
|
(Amounts in
thousands)
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
2015
|
2016
|
|
2016
|
|
RMB
|
|
RMB
|
|
US$
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
310,669
|
|
202,694
|
|
29,194
|
Term deposits and
short term investments
|
769,681
|
|
781,298
|
|
112,530
|
Restricted
cash
|
125,000
|
|
354,602
|
|
51,073
|
Accounts receivable,
net
|
506,351
|
|
405,033
|
|
58,337
|
Amounts due from
related parties
|
124,677
|
|
156,260
|
|
22,506
|
Prepayment and other
current assets
|
58,574
|
|
64,069
|
|
9,228
|
Convertible debts from
a related party
|
-
|
|
104,429
|
|
15,041
|
Deferred tax
assets
|
35,963
|
|
54,307
|
|
7,822
|
Total current
assets
|
1,930,915
|
|
2,122,692
|
|
305,731
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
80,537
|
|
72,087
|
|
10,383
|
Intangible assets,
net
|
12,404
|
|
9,475
|
|
1,365
|
Available-for-sale
investments
|
513,994
|
|
939,432
|
|
135,306
|
Equity investments,
net
|
11,610
|
|
8,809
|
|
1,269
|
Other non-current
assets
|
17,746
|
|
16,047
|
|
2,311
|
Total non-current
assets
|
636,291
|
|
1,045,850
|
|
150,634
|
Total
assets
|
2,567,206
|
|
3,168,542
|
|
456,365
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
loans
|
131,046
|
|
358,602
|
|
51,649
|
Accounts
payable
|
289,148
|
|
260,902
|
|
37,578
|
Amounts due to related
parties
|
19,368
|
|
18,720
|
|
2,696
|
Advances from
customers
|
15,239
|
|
27,825
|
|
4,008
|
Taxes
payable
|
93,120
|
|
75,652
|
|
10,896
|
Salary and welfare
payable
|
114,028
|
|
130,329
|
|
18,771
|
Accrued expenses and
other current liabilities
|
80,891
|
|
111,049
|
|
15,994
|
Total current
liabilities
|
742,840
|
|
983,079
|
|
141,592
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
1,312
|
|
1,312
|
|
189
|
Long-term
liabilities
|
18,368
|
|
21,723
|
|
3,129
|
Total non-current
liabilities
|
19,680
|
|
23,035
|
|
3,318
|
Total
liabilities
|
762,520
|
|
1,006,114
|
|
144,910
|
Shareholders'
equity:
|
|
|
|
|
|
Phoenix New Media
Limited shareholders' equity:
|
|
|
|
|
|
Class A ordinary
shares
|
16,733
|
|
16,843
|
|
2,426
|
Class B ordinary
shares
|
22,053
|
|
22,053
|
|
3,176
|
Additional paid-in
capital
|
1,551,104
|
|
1,555,511
|
|
224,040
|
Statutory
reserves
|
70,311
|
|
77,946
|
|
11,227
|
Retained
earnings
|
122,093
|
|
195,069
|
|
28,096
|
Accumulated other
comprehensive income
|
23,341
|
|
298,346
|
|
42,971
|
Total Phoenix New
Media Limited shareholders' equity
|
1,805,635
|
|
2,165,768
|
|
311,936
|
Noncontrolling
interests
|
(949)
|
|
(3,340)
|
|
(481)
|
Total
shareholders' equity
|
1,804,686
|
|
2,162,428
|
|
311,455
|
Total liabilities
and shareholders' equity
|
2,567,206
|
|
3,168,542
|
|
456,365
|
|
|
|
|
|
|
* 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
|
|
Twelve Months
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising revenues
|
346,190
|
|
310,439
|
|
353,158
|
|
50,865
|
|
1,226,516
|
|
1,232,210
|
|
177,475
|
Paid service
revenues
|
84,579
|
|
49,583
|
|
58,724
|
|
8,458
|
|
382,680
|
|
212,697
|
|
30,635
|
Total
revenues
|
430,769
|
|
360,022
|
|
411,882
|
|
59,323
|
|
1,609,196
|
|
1,444,907
|
|
208,110
|
Cost of
revenues
|
(207,028)
|
|
(182,927)
|
|
(205,204)
|
|
(29,556)
|
|
(829,386)
|
|
(726,807)
|
|
(104,682)
|
Gross
profit
|
223,741
|
|
177,095
|
|
206,678
|
|
29,767
|
|
779,810
|
|
718,100
|
|
103,428
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing expenses
|
(82,756)
|
|
(74,210)
|
|
(102,386)
|
|
(14,747)
|
|
(346,133)
|
|
(339,171)
|
|
(48,851)
|
General and
administrative expenses
|
(60,020)
|
|
(37,897)
|
|
(41,150)
|
|
(5,927)
|
|
(183,989)
|
|
(181,677)
|
|
(26,167)
|
Technology and
product development expenses
|
(43,958)
|
|
(37,756)
|
|
(41,692)
|
|
(6,005)
|
|
(170,714)
|
|
(161,880)
|
|
(23,316)
|
Total operating
expenses
|
(186,734)
|
|
(149,863)
|
|
(185,228)
|
|
(26,679)
|
|
(700,836)
|
|
(682,728)
|
|
(98,334)
|
Income from
operations
|
37,007
|
|
27,232
|
|
21,450
|
|
3,088
|
|
78,974
|
|
35,372
|
|
5,094
|
Other
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
7,482
|
|
7,943
|
|
10,785
|
|
1,553
|
|
30,234
|
|
35,113
|
|
5,057
|
Interest
expense
|
(728)
|
|
(1,554)
|
|
(3,778)
|
|
(544)
|
|
(2,328)
|
|
(7,061)
|
|
(1,017)
|
Foreign
currency exchange gain/(loss)
|
743
|
|
575
|
|
8,486
|
|
1,222
|
|
(1,054)
|
|
9,608
|
|
1,384
|
Loss from
equity investments, including impairments
|
(9,771)
|
|
(1,242)
|
|
(29)
|
|
(4)
|
|
(41,861)
|
|
(1,776)
|
|
(256)
|
Gain on
disposal of an equity investment and acquisition of
available-for-sale investments
|
-
|
|
-
|
|
-
|
|
-
|
|
4,643
|
|
-
|
|
-
|
Others,
net
|
13,066
|
|
1,021
|
|
11,606
|
|
1,672
|
|
29,294
|
|
21,053
|
|
3,032
|
Income before
tax
|
47,799
|
|
33,975
|
|
48,520
|
|
6,987
|
|
97,902
|
|
92,309
|
|
13,294
|
Income tax
expense
|
(7,158)
|
|
(2,879)
|
|
(9,253)
|
|
(1,333)
|
|
(25,517)
|
|
(14,089)
|
|
(2,029)
|
Net
income
|
40,641
|
|
31,096
|
|
39,267
|
|
5,654
|
|
72,385
|
|
78,220
|
|
11,265
|
Net loss
attributable to noncontrolling interests
|
422
|
|
599
|
|
512
|
|
74
|
|
1,199
|
|
2,391
|
|
344
|
Net income
attributable to Phoenix New Media Limited
|
41,063
|
|
31,695
|
|
39,779
|
|
5,728
|
|
73,584
|
|
80,611
|
|
11,609
|
Net
income
|
40,641
|
|
31,096
|
|
39,267
|
|
5,654
|
|
72,385
|
|
78,220
|
|
11,265
|
Other
comprehensive income/(loss), net of tax: fair value remeasurement
for available-for-sale investments
|
13,376
|
|
(39,610)
|
|
270,303
|
|
38,932
|
|
15,869
|
|
247,336
|
|
35,624
|
Other
comprehensive income, net of tax: foreign currency translation
adjustment
|
27,220
|
|
2,920
|
|
15,815
|
|
2,278
|
|
22,813
|
|
27,669
|
|
3,985
|
Comprehensive
income/(loss)
|
81,237
|
|
(5,594)
|
|
325,385
|
|
46,864
|
|
111,067
|
|
353,225
|
|
50,874
|
Comprehensive
loss attributable to noncontrolling interests
|
422
|
|
599
|
|
512
|
|
74
|
|
1,199
|
|
2,391
|
|
344
|
Comprehensive
income/(loss) attributable to Phoenix New Media
Limited
|
81,659
|
|
(4,995)
|
|
325,897
|
|
46,938
|
|
112,266
|
|
355,616
|
|
51,218
|
Net income
attributable to Phoenix New Media Limited
|
41,063
|
|
31,695
|
|
39,779
|
|
5,728
|
|
73,584
|
|
80,611
|
|
11,609
|
Net income per Class
A and Class B ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.07
|
|
0.06
|
|
0.07
|
|
0.01
|
|
0.13
|
|
0.14
|
|
0.02
|
Diluted
|
0.07
|
|
0.05
|
|
0.07
|
|
0.01
|
|
0.13
|
|
0.14
|
|
0.02
|
Net income per ADS (1
ADS represents 8 Class A ordinary shares):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.57
|
|
0.44
|
|
0.55
|
|
0.08
|
|
1.03
|
|
1.12
|
|
0.16
|
Diluted
|
0.57
|
|
0.44
|
|
0.55
|
|
0.08
|
|
1.01
|
|
1.12
|
|
0.16
|
Weighted average
number of Class A and Class B ordinary shares used in computing net
income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
572,175,288
|
|
574,124,546
|
|
574,115,251
|
|
574,115,251
|
|
571,247,723
|
|
573,521,536
|
|
573,521,536
|
Diluted
|
578,625,484
|
|
577,432,460
|
|
577,290,719
|
|
577,290,719
|
|
580,785,256
|
|
577,037,906
|
|
577,037,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Derived from audited financial
statements included in the Company's Form 20-F dated April 28,
2016.
|
Phoenix New Media
Limited
|
Condensed Segments
Information
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
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
|
346,190
|
|
310,439
|
|
353,158
|
|
50,865
|
|
1,226,516
|
|
1,232,210
|
|
177,475
|
Paid
service
|
84,579
|
|
49,583
|
|
58,724
|
|
8,458
|
|
382,680
|
|
212,697
|
|
30,635
|
Total
revenues
|
430,769
|
|
360,022
|
|
411,882
|
|
59,323
|
|
1,609,196
|
|
1,444,907
|
|
208,110
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
143,144
|
|
151,770
|
|
174,005
|
|
25,062
|
|
557,421
|
|
598,040
|
|
86,136
|
Paid
service
|
63,884
|
|
31,157
|
|
31,199
|
|
4,494
|
|
271,965
|
|
128,767
|
|
18,546
|
Total cost of
revenues
|
207,028
|
|
182,927
|
|
205,204
|
|
29,556
|
|
829,386
|
|
726,807
|
|
104,682
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
advertising service
|
203,046
|
|
158,669
|
|
179,153
|
|
25,803
|
|
669,095
|
|
634,170
|
|
91,339
|
Paid
service
|
20,695
|
|
18,426
|
|
27,525
|
|
3,964
|
|
110,715
|
|
83,930
|
|
12,089
|
Total gross
profit
|
223,741
|
|
177,095
|
|
206,678
|
|
29,767
|
|
779,810
|
|
718,100
|
|
103,428
|
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
December 31, 2015
|
|
Three Months Ended
September 30, 2016
|
|
Three Months Ended
December 31, 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
|
223,741
|
|
(7,289)
|
(1)
|
216,452
|
|
177,095
|
|
(5,115)
|
(1)
|
171,980
|
|
206,678
|
|
(949)
|
(1)
|
205,729
|
Gross
margin
|
51.9%
|
|
|
|
50.2%
|
|
49.2%
|
|
|
|
47.8%
|
|
50.2%
|
|
|
|
49.9%
|
Income from
operations
|
37,007
|
|
(5,957)
|
(1)
|
31,050
|
|
27,232
|
|
(8,186)
|
(1)
|
19,046
|
|
21,450
|
|
1,542
|
(1)
|
22,992
|
Operating profit
margin
|
8.6%
|
|
|
|
7.2%
|
|
7.6%
|
|
|
|
5.3%
|
|
5.2%
|
|
|
|
5.6%
|
|
|
|
(5,957)
|
(1)
|
|
|
|
|
(8,186)
|
(1)
|
|
|
|
|
1,542
|
(1)
|
|
|
|
|
9,771
|
(2)
|
|
|
|
|
1,242
|
(2)
|
|
|
|
|
29
|
(2)
|
|
Net income
attributable to Phoenix New Media Limited
|
41,063
|
|
3,814
|
|
44,877
|
|
31,695
|
|
(6,944)
|
|
24,751
|
|
39,779
|
|
1,571
|
|
41,350
|
Net profit
margin
|
9.5%
|
|
|
|
10.4%
|
|
8.8%
|
|
|
|
6.9%
|
|
9.7%
|
|
|
|
10.0%
|
Net income per
ADS—diluted
|
0.57
|
|
|
|
0.62
|
|
0.44
|
|
|
|
0.34
|
|
0.55
|
|
|
|
0.57
|
Weighted average
number of ADSs used in computing
diluted net income per ADS
|
72,328,186
|
|
|
|
72,328,186
|
|
72,179,058
|
|
|
|
72,179,058
|
|
72,161,340
|
|
|
|
72,161,340
|
|
(1) Share-based
compensation
(2) Loss from equity investments, including
impairments
|
|
Non-GAAP to GAAP reconciling
items have no income tax effect.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2015
|
|
Twelve Months
Ended December 31, 2016
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
|
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
Gross
profit
|
779,810
|
|
6,335
|
(1)
|
786,145
|
|
718,100
|
|
(4,367)
|
(1)
|
713,733
|
|
|
|
|
|
|
Gross
margin
|
48.5%
|
|
|
|
48.9%
|
|
49.7%
|
|
|
|
49.4%
|
|
|
|
|
|
|
Income from
operations
|
78,974
|
|
34,354
|
(1)
|
113,328
|
|
35,372
|
|
1,890
|
(1)
|
37,262
|
|
|
|
|
|
|
Operating
margin
|
4.9%
|
|
|
|
7.0%
|
|
2.4%
|
|
|
|
2.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34,354
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41,861
|
(2)
|
|
|
|
|
1,890
|
(1)
|
|
|
|
|
|
|
|
|
|
|
(4,643)
|
(3)
|
|
|
|
|
1,776
|
(2)
|
|
|
|
|
|
|
|
Net income
attributable to Phoenix New Media Limited
|
73,584
|
|
71,572
|
|
145,156
|
|
80,611
|
|
3,666
|
|
84,277
|
|
-
|
|
|
|
|
Net profit
margin
|
4.6%
|
|
|
|
9.0%
|
|
5.6%
|
|
|
|
5.8%
|
|
|
|
|
|
|
Net income per
ADS—diluted
|
1.01
|
|
|
|
2.00
|
|
1.12
|
|
|
|
1.17
|
|
|
|
|
|
|
Weighted average
number of ADSs used in computing
diluted net income per ADS
|
72,598,157
|
|
|
|
72,598,157
|
|
72,129,738
|
|
|
|
72,129,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation
|
(2) Loss/(gain) from
equity investments, including impairments
|
(3) Gain on disposal
of an equity investment and acquisition of available-for-sale
investments
|
|
Non-GAAP to GAAP reconciling
items have no income tax effect.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details of cost of
revenues are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
(Amounts in
thousands)
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
Revenue sharing
fees
|
46,603
|
|
16,559
|
|
17,340
|
|
2,497
|
|
216,973
|
|
72,027
|
|
10,374
|
|
|
|
|
Content and
operational costs
|
106,585
|
|
119,538
|
|
138,635
|
|
19,969
|
|
406,741
|
|
470,813
|
|
67,811
|
|
|
|
|
Bandwidth
costs
|
19,662
|
|
16,404
|
|
15,160
|
|
2,183
|
|
83,170
|
|
64,200
|
|
9,247
|
|
|
|
|
Sales taxes and
surcharges
|
34,178
|
|
30,426
|
|
34,069
|
|
4,907
|
|
122,502
|
|
119,767
|
|
17,250
|
|
|
|
|
Total cost of
revenues
|
207,028
|
|
182,927
|
|
205,204
|
|
29,556
|
|
829,386
|
|
726,807
|
|
104,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 28, 2016.
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-fourth-quarter-and-fiscal-year-2016-unaudited-financial-results-300422731.html
SOURCE Phoenix New Media Limited
Copyright . 13 PR Newswire