BEIJING, May 11, 2020 /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 in the first quarter ended March 31,
2020.
Mr. Shuang Liu, CEO of Phoenix
New Media, commented, "As the COVID-19 pandemic swept the globe, we
continued to leverage our superior content capabilities and further
streamline our operating efficiency. For our news app, we
introduced and optimized several innovative features in the first
quarter, resulting in a 38% year-over-year boost in user retention
rates. On the news front, our team of leading media professionals
continued delivering a wealth of highly-differentiated and premium
COVID-19 outbreak coverage. Moreover, our vertical content teams
also created an abundance of in-depth reports, highlighting such
topical areas as the struggles of healthcare workers on the
frontlines as well as the tenacity of Chinese entrepreneurs facing
the crisis. In recognition of our role as a trusted source of
information, we were ranked among the top 10 online media outlets
providing the most social value by the State Information
Center."
"Notably, as many businesses have opted to adjust their
marketing strategies and reduce their advertising budgets amid
COVID-19, we have taken active measures to refine our cost
structures, further enhance our operating efficiency and decisively
reduce spending on user acquisition channels with low returns,
successfully reducing traffic acquisition costs in the quarter by
close to 50% on a year-over-year basis. Despite the near-term
headwinds in online advertising, we believe that our pervasive
brand influence, distinguished reputation, and loyal user base will
remain appealing to those advertisers seeking productive sales
leads and attractive ROIs going forward. As the world gradually
reopens for business, we expect that our content leadership, strong
advertising value proposition, new business initiatives, and
prudent financial management will drive our return to profitability
and help to generate sustainable growth over the long term."
Mr. Edward Lu, CFO of Phoenix New
Media, further stated, "Despite facing industry-wide challenges,
our first quarter performance was better than our previous
expectations. We continued to implement initiatives to refine our
cost and expense structures, which enabled us to increase our
margins. During the quarter, we delivered a 38.3% year-over-year
increase in gross profit. In light of the COVID-19 outbreak, we
plan to remain prudent in our resource allocation methodologies. We
will also continue to focus on streamlining our operations,
bolstering our cash reserves, and prioritizing investments that can
both achieve high returns and enhance our growth quality.
Importantly, these measures should enable us to weather the current
headwinds while further improving our ability to capitalize on
those opportunities which will emerge in the post-pandemic
period."
First Quarter 2020 Financial Results
REVENUES
Total revenues in the first quarter of 2020 decreased by 3.5% to
RMB274.8 million (US$38.8 million) from RMB284.9 million in the same period of 2019. The
Company had consolidated the revenues of RMB59.5 million (US$8.4
million) in the first quarter of 2020 from Beijing Fenghuang
Tianbo Network Technology Co., Ltd. ("Tianbo"), which has been
consolidated starting from April 1,
2019. The Company's total revenues excluding those from
Tianbo in the first quarter of 2020 decreased by 24.4% due to the
negative impact of COVID-19 outbreak and intensified industry
competitions.
Net advertising revenues in the first quarter of 2020 increased
by 5.5% to RMB227.9 million
(US$32.2 million) from RMB216.0 million in the same period of 2019. The
increase was primarily attributable to the consolidation of
advertising revenues from Tianbo. The Company's net advertising
revenues excluding those from Tianbo in the first quarter of 2020
decreased by 20.9% due to the negative impact of COVID-19 outbreak
and intensified industry competitions.
Paid services revenues[1] in the first quarter of
2020 decreased by 31.9% to RMB46.9
million (US$6.6 million) from
RMB68.9 million in the same period of
2019. Revenues from paid contents in the first quarter of 2020
decreased by 32.0% to RMB36.0 million
(US$5.1 million) from RMB52.9 million in the same period of 2019,
mainly due to the market condition and the tightening of rules and
regulations on digital reading. Revenues from games in the first
quarter of 2020 decreased by 95.6% to RMB0.2
million (US$0.03 million) from
RMB3.1 million in the same period of
2019 as the Company closed some game related business in
December 2019. Revenues from MVAS in
the first quarter of 2020 decreased by 56.6% to RMB3.4 million (US$0.5
million) from RMB7.9 million
in the same period of 2019 mainly resulting from the decline in
users' demand for services provided through telecom operators in
China. Revenues from others in the
first quarter of 2020 increased by 49.3% to RMB7.3 million (US$1.0
million) from RMB5.0 million
in the same period of 2019, which was mainly caused by the increase
in revenues from E-commerce and online real estate related
services.
[1] Paid services
revenues comprise of (i) revenues from paid contents, which
includes digital reading, audio books, paid videos, and other
content-related sales activities, (ii) revenues from games, which
includes web-based games and mobile games, (iii) revenues from
MVAS, and (iv) revenues from others.
|
COST OF REVENUES
Cost of revenues in the first quarter of 2020 decreased by 28.6%
to RMB127.1 million (US$17.9 million) from RMB178.2 million in the same period of 2019. The
decrease in cost of revenues was mainly due to the following:
- Content and operational costs in the first quarter of 2020
decreased by 33.8% to RMB97.3 million
(US$13.7 million) from RMB147.0 million in the same period of 2019,
mainly due to the decrease in IP production costs as the Company
had fewer IP projects in the first quarter of 2020 and has taken
strict cost control measures to enhance its operating efficiency in
2020.
- Revenue sharing fees to telecom operators and channel partners
in the first quarter of 2020 decreased by 17.2% to RMB14.3 million (US$2.0
million) from RMB17.3 million
in the same period of 2019, primarily attributable to the decrease
in the MVAS revenues.
The decrease was partially offset by the following:
- Bandwidth costs in the first quarter of 2020 increased slightly
to RMB15.5 million (US$2.2 million) from RMB13.9 million in the same period of 2019.
Share-based compensation included in the content and operational
costs in the first quarter of 2020 increased slightly to
RMB1.6 million (US$0.2 million) from RMB1.4 million in the same period of 2019.
GROSS PROFIT
Gross profit in the first quarter of 2020 increased by 38.3% to
RMB147.7 million (US$20.9 million) from RMB106.7 million in the same period of 2019.
Gross margin in the first quarter of 2020 increased to 53.7% from
37.5% in the same period of 2019, primarily attributable to the
decrease in IP production costs as well as the Company's strict
cost control measures taken to enhance its operating efficiency in
2020, 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 in the first quarter of 2020, which
excluded share-based compensation, increased to 54.3% from 38.0% in
the same period of 2019.
OPERATING EXPENSES AND LOSS FROM OPERATIONS
Total operating expenses in the first quarter of 2020 increased
by 15.2% to RMB263.7 million
(US$37.2 million) from RMB228.9 million in the same period of 2019,
primarily attributable to the consolidation of operating expenses
from Tianbo of RMB42.3 million
(US$6.0 million) in the first quarter
of 2020, impairment of goodwill for the reporting unit of Beijing
Yitian Xindong Network Technology Co., Ltd. ("Yitian Xindong" or
"Tadu") recognized in the first quarter of 2020 and the increase in
bad debt expenses caused by consolidation of Tianbo and the slower
collection of receivables as a result of the COVID-19 outbreak,
which was partially offset by the Company's effective cost control
efforts as mentioned above. The Company recognized an impairment of
goodwill of RMB39.4 million
(US$5.6 million) for the Tadu
reporting unit in the first quarter of 2020, mainly caused by the
negative impact on Tadu from both the COVID-19 outbreak in 2020 and
the ongoing disagreements between the other shareholder of Tadu and
the Company. The goodwill impairment loss was determined by
quantitatively comparing the fair value of the Tadu reporting unit
to its carrying amounts, with the fair value of the Tadu reporting
unit determined based on the discounted cash flows of Tadu by
applying multiple probability weighted approach for the impact of
the COVID-19 outbreak. Share-based compensation included in
operating expenses in the first quarter of 2020 was RMB3.3 million (US$0.5
million), compared to RMB2.5
million in the same period of 2019, which was mainly caused
by those options granted by the Company in July 2019.
Loss from operations in the first quarter of 2020 was
RMB116.0 million (US$16.4 million), compared to RMB122.1 million in the same period of 2019.
Operating margin in the first quarter of 2020 was negative 42.2%,
compared to negative 42.9% in the same period of 2019.
Non-GAAP loss from operations in the first quarter of 2020,
which excluded share-based compensation and impairment of goodwill,
was RMB71.7 million (US$10.1 million), compared to RMB118.1 million in the same period of 2019.
Non-GAAP operating margin in the first quarter of 2020, which
excluded share-based compensation and impairment of goodwill, was
negative 26.1%, compared to negative 41.5% in the same period of
2019.
OTHER INCOME OR LOSS
Other income or loss reflects gain on disposal of
available-for-sale debt investments, interest income, interest
expense, foreign currency exchange gain or loss, income or loss
from equity method investments, net of impairments, changes in fair
value of forward contract in relation to future disposal of
investments in Particle, and others, net[2]. Total net
other income in the first quarter of 2020 was RMB24.6 million (US$3.5
million), compared to RMB1.9
million in the same period of 2019.
- Interest income in the first quarter of 2020 decreased to
RMB6.8 million (US$1.0 million) from RMB8.7 million in the same period of 2019.
- Interest expense in the first quarter of 2020 decreased to
RMB0.2 million (US$0.03 million), from RMB2.9 million in the same period of 2019, which
was primarily due to the decrease in outstanding short-term bank
loans as the Company repaid all of its short-term bank loans in the
second quarter of 2019.
- Foreign currency exchange loss in the first quarter of 2020 was
RMB1.8 million (US$0.2 million), compared to RMB2.2 million in the same period of 2019.
- Loss from equity method investments, net of impairments, in the
first quarter of 2020 was RMB0.2
million (US$0.03 million),
compared to RMB4.0 million in the
same period of 2019.
- Changes in fair value of forward contract in relation to future
disposal of investments in Particle in the first quarter of 2020
was a gain of RMB14.7 million
(US$2.1 million), compared to nil in
the same period of 2019.
- Others, net, in the first quarter of 2020 increased to
RMB5.3 million (US$0.7 million), from RMB2.2 million in the same period of 2019, mainly
attributable to more government subsidies received in the first
quarter of 2020.
[2] "Others, net"
primarily consists of government subsidies and litigation loss
provisions.
|
NET LOSS ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED
Net loss attributable to Phoenix New Media Limited in the first
quarter of 2020 was RMB79.5 million
(US$11.2 million), compared to
RMB119.7 million in the same period
of 2019. Net margin in the first quarter of 2020 was negative
28.9%, compared to negative 42.0% in the same period of 2019. Net
loss per diluted ADS[3] in the first quarter of 2020 was
RMB1.09 (US$0.15), compared to net loss per diluted ADS
of RMB1.65 in the same period of
2019.
Non-GAAP net loss attributable to Phoenix New Media Limited,
which excluded share-based compensation, impairment of goodwill,
income or loss from equity method investments, net of impairments,
gain on disposal of available-for-sale debt investments, and
changes in fair value of forward contract in relation to future
disposal of investments in Particle as applicable, was RMB49.7 million (US$7.0
million) in the first quarter of 2020, compared to
RMB111.8 million in the same period
of 2019. Non-GAAP net margin in the first quarter of 2020 was
negative 18.1%, compared to negative 39.2% in the same period of
2019. Non-GAAP net loss per diluted ADS in the first quarter of
2020 was RMB0.68 (US$0.10), compared to RMB1.54 in the same period of 2019.
In the first quarter of 2020, the Company's weighted average
number of ADSs used in the computation of diluted net loss per ADS
was 72,790,541. As of March 31, 2020,
the Company had a total of 582,324,325 ordinary shares outstanding,
or the equivalent of 72,790,541 ADSs.
[3] "ADS" means
American Depositary Share of the Company. Each ADS represents eight
Class A ordinary shares of the Company.
|
CERTAIN BALANCE SHEET ITEMS
As of March 31, 2020, the
Company's cash and cash equivalents, term deposits and short term
investments and restricted cash were RMB1.48
billion (US$209.5
million).
As previously announced by the Company, the Company entered into
a share purchase agreement (the "SPA") with Run Liang Tai
Management Limited, or Run Liang Tai, and its designated entities
(the "Proposed Buyers") on March 22,
2019 and entered into a series of agreements with Run Liang
Tai and the other shareholders of Particle to resolve certain
issues in connection with the sale of preferred shares in Particle
Inc. ("Particle") (the "Proposed Transaction"). The Company
completed delivery of the first batch of preferred shares of
Particle to the Proposed Buyers in the fourth quarter of 2019 and
expects to complete the second batch of preferred shares of
Particle to the Proposed Buyers in August
2020. The fair value of the remaining available-for-sale
debt investments in Particle of the Company was RMB2,044.0 million (US$288.7 million) as of March 31, 2020, which was almost the same as
RMB2,012.5 million as of December 31, 2019, which were determined based on
a valuation technique under the market approach, known as guideline
company method, as well as using observable transactions of
Particle's shares, as the selling price of the second batch of
preferred shares of Particle has been determined in the agreements
previously entered into among the Company, Run Liang Tai and the
other shareholders of Particle and there was no new agreements
entered into in the first quarter of 2020 that changed such selling
price.
On January 1, 2020, the Company
adopted ASU 2016-13 Financial Instruments-Credit Losses (Topic
326) on a modified retrospective basis, which requires it to
measure all expected credit losses for financial assets held at a
reporting date based on historical experience, current conditions,
and reasonable and supportable forecasts. There was no material
impact on the Company's financial statements upon adoption of ASU
2016-13 or for the first quarter of 2020.
Business Outlook
For the second quarter of 2020, the Company expects its total
revenues to be between RMB308.7
million and RMB338.7 million;
net advertising revenues are expected to be between RMB276.4 million and RMB291.4 million; and paid services revenues are
expected to be between RMB32.3
million and RMB47.3
million.
All of the above forecasts reflect the current and preliminary
view of Company management, which are subject to change and
substantial uncertainty, particularly in view of the potential
impact of the COVID-19 outbreak, the effects of which are difficult
to analyse and predict.
Conference Call Information
The Company will hold a conference call at 9:00 p.m. U.S. Eastern Time on May 11, 2020 (May 12,
2020 at 9:00 a.m. Beijing/Hong
Kong time) to discuss its first quarter 2020 unaudited
financial results and operating performance.
To participate in the call, please register in advance of the
conference by navigating to
http://apac.directeventreg.com/registration/event/9874898. Upon
registering, you will be provided with participant dial-in numbers,
Direct Event passcode and unique registrant ID by email. Please
dial in 10 minutes prior to the call, using the participant dial-in
numbers, Direct Event Passcode and unique registrant ID which would
be provided upon registering. You will be automatically linked to
the live call after completion of this process.
A replay of the call will be available through May 19, 2020 by using the dial-in numbers and
conference ID below:
International:
|
|
+61 2 8199
0299
|
Mainland
China:
|
|
4006322162
|
Hong Kong:
|
|
+852
30512780
|
United
States:
|
|
+1 646 254
3697
|
Conference
ID:
|
|
9874898
|
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 or loss from
operations, non-GAAP operating margin, non-GAAP net income or loss
attributable to Phoenix New Media Limited, non-GAAP net margin and
non-GAAP net income or loss 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 or
loss from operations is income or loss from operations excluding
share-based compensation and impairment of goodwill. Non-GAAP
operating margin is non-GAAP income or loss from operations divided
by total revenues. Non-GAAP net income or loss attributable to
Phoenix New Media Limited is net income or loss attributable to
Phoenix New Media Limited excluding share-based compensation,
impairment of goodwill, income or loss from equity method
investments, net of impairments, gain on disposal of
available-for-sale debt investments, and changes in fair value of
forward contract in relation to future disposal of investments in
Particle. Non-GAAP net margin is non-GAAP net income or loss
attributable to Phoenix New Media Limited divided by total
revenues. Non-GAAP net income or loss per diluted ADS is non-GAAP
net income or loss 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, income or loss from equity method
investments, net of impairments, which have been and will continue
to be significant recurring items, and without the effect of
impairment of goodwill, gain on disposal of available-for-sale debt
investments, and changes in fair value of forward contract in
relation to future disposal of investments in Particle which have
been significant and one-time items. 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 or loss from operations
and net income or loss 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 RMB7.0808 to US$1.00, the noon buying rate in effect on
March 31, 2020 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 applications 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; the Company's investment plans and
strategies, 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; relevant government policies and
regulations relating to the Company; and the effects of the
COVID-19 on the economy in China
in general and on the Company's business in particular. 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
Qing Liu
Email: investorrelations@ifeng.com
ICR, Inc.
Jack Wang
Tel: +1 (646) 405-4883
Email: investorrelations@ifeng.com
Phoenix New Media
Limited
|
Condensed
Consolidated Balance Sheets
|
(Amounts in
thousands)
|
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
2019
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Audited*
|
|
Unaudited
|
|
Unaudited
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
341,016
|
|
284,410
|
|
40,166
|
Term deposits and
short term investments
|
|
1,271,889
|
|
1,122,547
|
|
158,534
|
Restricted
cash
|
|
82,934
|
|
76,689
|
|
10,831
|
Accounts receivable,
net
|
|
638,272
|
|
601,411
|
|
84,935
|
Amounts due from
related parties
|
|
59,723
|
|
67,392
|
|
9,518
|
Prepayment and other
current assets
|
|
162,868
|
|
163,024
|
|
23,023
|
Total current
assets
|
|
2,556,702
|
|
2,315,473
|
|
327,007
|
Non-current
assets:
|
|
|
|
|
|
|
Property and
equipment, net
|
|
101,650
|
|
92,701
|
|
13,092
|
Intangible assets,
net
|
|
99,280
|
|
98,240
|
|
13,874
|
Goodwill
|
|
361,074
|
|
321,722
|
|
45,436
|
Available-for-sale
debt investments
|
|
2,014,537
|
|
2,045,953
|
|
288,944
|
Equity investments,
net
|
|
13,237
|
|
13,000
|
|
1,836
|
Deferred tax
assets
|
|
73,688
|
|
74,430
|
|
10,512
|
Operating lease
right-of- use assets, net
|
|
85,790
|
|
78,920
|
|
11,146
|
Other non-current
assets
|
|
19,859
|
|
19,607
|
|
2,768
|
Total non-current
assets
|
|
2,769,115
|
|
2,744,573
|
|
387,608
|
Total
assets
|
|
5,325,817
|
|
5,060,046
|
|
714,615
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
259,928
|
|
210,660
|
|
29,751
|
Amounts due to
related parties
|
|
34,223
|
|
26,111
|
|
3,688
|
Advances from
customers
|
|
55,900
|
|
49,401
|
|
6,977
|
Taxes
payable
|
|
291,511
|
|
285,397
|
|
40,305
|
Salary and welfare
payable
|
|
174,902
|
|
107,639
|
|
15,201
|
Deposits in relation
to future disposal of investment in Particle
|
|
355,212
|
|
362,655
|
|
51,217
|
Accrued expenses and
other current liabilities
|
|
293,441
|
|
213,121
|
|
30,098
|
Operating lease
liabilities
|
|
40,326
|
|
43,291
|
|
6,114
|
Total current
liabilities
|
|
1,505,443
|
|
1,298,275
|
|
183,351
|
Non-current
liabilities:
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
197,810
|
|
200,551
|
|
28,323
|
Long-term
liabilities
|
|
27,612
|
|
27,612
|
|
3,900
|
Operating lease
liabilities
|
|
49,937
|
|
41,990
|
|
5,930
|
Total non-current
liabilities
|
|
275,359
|
|
270,153
|
|
38,153
|
Total
liabilities
|
|
1,780,802
|
|
1,568,428
|
|
221,504
|
Shareholders'
equity:
|
|
|
|
|
|
|
Phoenix New Media
Limited shareholders' equity:
|
|
|
|
|
|
|
Class A ordinary
shares
|
|
17,499
|
|
17,499
|
|
2,471
|
Class B ordinary
shares
|
|
22,053
|
|
22,053
|
|
3,115
|
Additional paid-in
capital
|
|
1,611,484
|
|
1,613,593
|
|
227,883
|
Statutory
reserves
|
|
88,583
|
|
88,583
|
|
12,510
|
Retained
earnings
|
|
186,324
|
|
108,851
|
|
15,373
|
Accumulated other
comprehensive income
|
|
1,405,808
|
|
1,436,236
|
|
202,835
|
Total Phoenix New
Media Limited shareholders' equity
|
|
3,331,751
|
|
3,286,815
|
|
464,187
|
Noncontrolling
interests
|
|
213,264
|
|
204,803
|
|
28,924
|
Total
shareholders' equity
|
|
3,545,015
|
|
3,491,618
|
|
493,111
|
Total liabilities
and shareholders' equity
|
|
5,325,817
|
|
5,060,046
|
|
714,615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Derived from
audited financial statements included in the Company's Form 20-F
dated April 28, 2020.
|
Phoenix New Media
Limited
|
Condensed
Consolidated Statements of Comprehensive
Income/(loss)
|
(Amounts in
thousands, except for number of shares and per share (or ADS)
data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
2019
|
|
2019
|
|
2020
|
|
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Net advertising
revenues
|
215,984
|
|
395,170
|
|
227,865
|
|
32,181
|
Paid service
revenues
|
68,890
|
|
75,723
|
|
46,909
|
|
6,624
|
Total
revenues
|
284,874
|
|
470,893
|
|
274,774
|
|
38,805
|
Cost of
revenues
|
(178,145)
|
|
(210,938)
|
|
(127,124)
|
|
(17,953)
|
Gross
profit
|
106,729
|
|
259,955
|
|
147,650
|
|
20,852
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
(120,572)
|
|
(176,587)
|
|
(98,709)
|
|
(13,940)
|
General and
administrative expenses
|
(48,852)
|
|
(114,425)
|
|
(74,126)
|
|
(10,469)
|
Technology and
product development expenses
|
(59,441)
|
|
(62,460)
|
|
(51,477)
|
|
(7,270)
|
Impairment of
goodwill
|
-
|
|
-
|
|
(39,352)
|
|
(5,558)
|
Total operating
expenses
|
(228,865)
|
|
(353,472)
|
|
(263,664)
|
|
(37,237)
|
Loss from
operations
|
(122,136)
|
|
(93,517)
|
|
(116,014)
|
|
(16,385)
|
Other
income/(loss):
|
|
|
|
|
|
|
|
Interest
income
|
8,658
|
|
7,006
|
|
6,770
|
|
956
|
Interest
expense
|
(2,903)
|
|
(204)
|
|
(175)
|
|
(25)
|
Foreign currency
exchange (loss)/gain
|
(2,167)
|
|
1,003
|
|
(1,728)
|
|
(244)
|
Income/(loss) from
equity method investments, net of impairments
|
(3,968)
|
|
-
|
|
(236)
|
|
(33)
|
Gain on disposal of
available-for-sale debt investments, net of tax
|
-
|
|
1,001,181
|
|
-
|
|
-
|
Changes in fair value
of forward contract in relation to future disposal of
investments in Particle
|
-
|
|
4,441
|
|
14,744
|
|
2,082
|
Others,
net
|
2,241
|
|
3,737
|
|
5,274
|
|
745
|
(Loss)/income
before tax
|
(120,275)
|
|
923,647
|
|
(91,365)
|
|
(12,904)
|
Income tax
(expense)/benefit
|
(7,461)
|
|
(3,071)
|
|
995
|
|
141
|
Net
(loss)/income
|
(127,736)
|
|
920,576
|
|
(90,370)
|
|
(12,763)
|
Net loss/(income)
attributable to noncontrolling interests
|
7,999
|
|
(8,822)
|
|
10,846
|
|
1,532
|
Net (loss)/income
attributable to Phoenix New Media Limited
|
(119,737)
|
|
911,754
|
|
(79,524)
|
|
(11,231)
|
Net
(loss)/income
|
(127,736)
|
|
920,576
|
|
(90,370)
|
|
(12,763)
|
Other comprehensive
income, net of tax: fair value remeasurement or available-for-sale
debt investments
|
725,403
|
|
191,511
|
|
-
|
|
-
|
Other comprehensive
loss, net of tax: reclassification from disposal of
available-for-sale debt investments
|
-
|
|
(1,008,795)
|
|
-
|
|
-
|
Other comprehensive
(loss)/ income, net of tax: foreign currency translation
adjustment
|
(27,193)
|
|
(31,306)
|
|
30,428
|
|
4,297
|
Comprehensive
income/(loss)
|
570,474
|
|
71,986
|
|
(59,942)
|
|
(8,466)
|
Comprehensive
loss/(income) attributable to noncontrolling interests
|
7,999
|
|
(8,822)
|
|
10,846
|
|
1,532
|
Comprehensive
income/(loss) attributable to Phoenix New Media
Limited
|
578,473
|
|
63,164
|
|
(49,096)
|
|
(6,934)
|
Net (loss)/income
attributable to Phoenix New Media Limited
|
(119,737)
|
|
911,754
|
|
(79,524)
|
|
(11,231)
|
Net (loss)/income per
Class A and Class B ordinary share:
|
|
|
|
|
|
|
|
Basic
|
(0.21)
|
|
1.57
|
|
(0.14)
|
|
(0.02)
|
Diluted
|
(0.21)
|
|
1.57
|
|
(0.14)
|
|
(0.02)
|
Net (loss)/income per
ADS (1 ADS represents 8 Class A ordinary shares):
|
|
|
|
|
|
|
|
Basic
|
(1.65)
|
|
12.53
|
|
(1.09)
|
|
(0.15)
|
Diluted
|
(1.65)
|
|
12.53
|
|
(1.09)
|
|
(0.15)
|
Weighted average
number of Class A and Class B ordinary shares used in computing net
(loss)/income per share:
|
|
|
|
|
|
|
|
Basic
|
582,187,109
|
|
582,324,325
|
|
582,324,325
|
|
582,324,325
|
Diluted
|
582,187,109
|
|
582,324,325
|
|
582,324,325
|
|
582,324,325
|
Phoenix New Media
Limited
|
Condensed Segments
Information
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
2019
|
|
2019
|
|
2020
|
|
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Revenues:
|
|
|
|
|
|
|
|
Net advertising
service
|
215,984
|
|
395,170
|
|
227,865
|
|
32,181
|
Paid
services
|
68,890
|
|
75,723
|
|
46,909
|
|
6,624
|
Total
revenues
|
284,874
|
|
470,893
|
|
274,774
|
|
38,805
|
Cost of
revenues
|
|
|
|
|
|
|
|
Net advertising
service
|
140,060
|
|
188,305
|
|
105,471
|
|
14,895
|
Paid
services
|
38,085
|
|
22,633
|
|
21,653
|
|
3,058
|
Total cost of
revenues
|
178,145
|
|
210,938
|
|
127,124
|
|
17,953
|
Gross
profit
|
|
|
|
|
|
|
|
Net advertising
service
|
75,924
|
|
206,865
|
|
122,394
|
|
17,286
|
Paid
services
|
30,805
|
|
53,090
|
|
25,256
|
|
3,566
|
Total gross
profit
|
106,729
|
|
259,955
|
|
147,650
|
|
20,852
|
Phoenix New Media
Limited
|
Condensed
Information of Cost of Revenues
|
(Amounts in
thousands)
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
|
2019
|
|
2019
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Revenue sharing
fees
|
17,329
|
|
11,304
|
|
14,353
|
|
2,027
|
|
Content and
operational costs
|
146,961
|
|
183,288
|
|
97,271
|
|
13,737
|
|
Bandwidth
costs
|
13,855
|
|
16,346
|
|
15,500
|
|
2,189
|
|
Total cost of
revenues
|
178,145
|
|
210,938
|
|
127,124
|
|
17,953
|
|
|
Three Months Ended
March 31, 2019
|
|
Three Months Ended
December 31, 2019
|
|
Three Months Ended
March 31, 2020
|
|
|
|
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
|
106,729
|
|
1,441
|
(1)
|
108,170
|
|
259,955
|
|
1,617
|
(1)
|
261,572
|
|
147,650
|
|
1,653
|
(1)
|
149,303
|
Gross
margin
|
37.5%
|
|
|
|
38.0%
|
|
55.2%
|
|
|
|
55.5%
|
|
53.7%
|
|
|
|
54.3%
|
|
|
|
3,987
|
(1)
|
|
|
|
|
6,730
|
(1)
|
|
|
|
|
4,943
|
(1)
|
|
|
|
|
-
|
(2)
|
|
|
|
|
-
|
(2)
|
|
|
|
|
39,352
|
(2)
|
|
Loss from
operations
|
(122,136)
|
|
3,987
|
|
(118,149)
|
|
(93,517)
|
|
6,730
|
|
(86,787)
|
|
(116,014)
|
|
44,295
|
|
(71,719)
|
Operating
margin
|
(42.9)%
|
|
|
|
(41.5)%
|
|
(19.9)%
|
|
|
|
(18.4)%
|
|
(42.2)%
|
|
|
|
(26.1)%
|
|
|
|
3,987
|
(1)
|
|
|
|
|
6,730
|
(1)
|
|
|
|
|
4,943
|
(1)
|
|
|
|
|
-
|
(2)
|
|
|
|
|
-
|
(2)
|
|
|
|
|
39,352
|
(2)
|
|
|
|
|
3,968
|
(3)
|
|
|
|
|
-
|
(3)
|
|
|
|
|
236
|
(3)
|
|
|
|
|
-
|
(4)
|
|
|
|
|
(1,001,181)
|
(4)
|
|
|
|
|
-
|
(4)
|
|
|
|
|
-
|
(5)
|
|
|
|
|
(4,441)
|
(5)
|
|
|
|
|
(14,744)
|
(5)
|
|
Net (loss)/income
attributable to Phoenix New Media Limited
|
(119,737)
|
|
7,955
|
|
(111,782)
|
|
911,754
|
|
(998,892)
|
|
(87,138)
|
|
(79,524)
|
|
29,787
|
|
(49,737)
|
Net margin
|
(42.0)%
|
|
|
|
(39.2)%
|
|
193.6%
|
|
|
|
(18.5)%
|
|
(28.9)%
|
|
|
|
(18.1)%
|
Net (loss)/income per
ADS—diluted
|
(1.65)
|
|
|
|
(1.54)
|
|
12.53
|
|
|
|
(1.20)
|
|
(1.09)
|
|
|
|
(0.68)
|
Weighted average
number of ADSs used in computing diluted net (loss)/income per
ADS
|
72,773,389
|
|
|
|
72,773,389
|
|
72,790,541
|
|
|
|
72,790,541
|
|
72,790,541
|
|
|
|
72,790,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Share-based
compensation
|
(2)Impairment of
goodwill
|
(3)Income from equity
method investments, including impairments
|
(4)Gain on disposal
of available-for-sale debt investments
|
(5)Forward contract
in relation to future disposal of investments in
Particle
|
Non-GAAP to GAAP
reconciling items have no income tax effect.
View original
content:http://www.prnewswire.com/news-releases/phoenix-new-media-reports-first-quarter-2020-unaudited-financial-results-301056786.html
SOURCE Phoenix New Media Limited