Phoenix New Media main performance in the first quarter

Phoenix New Media (Nyse:feng) today released its unaudited earnings for the first quarter of fiscal year 2014 as at March 31. The report shows that Phoenix New media in the first quarter of the total revenue of 357.1 million yuan (about 57.5 million U.S. dollars), compared with the same period last year, 281.4 million yuan growth of 26.9%; Net profit is 62.2 million yuan (about 10 million U.S. dollars), and 39.2 million yuan in the same period last year 58.6 %。

According to Yahoo's financial data, 3 of Wall Street analysts on average expect the U.S. depository Receipts (ADS) to be diluted to 0.62 yuan per share of the new Phoenix media in the first quarter, according to General Accounting Standards (GAAP). According to the results, the Phoenix New media in the first quarter of ads diluted earnings per share of 0.80 yuan, more than analysts expected.

In addition, 2 Wall Street analysts on average expected Phoenix new media in the first quarter of the total revenue of 351.47 million yuan. The results show that Phoenix New media in the first quarter of the total revenue of 357.1 million yuan, more than analysts expected.

Main results of the first quarter:

-Phoenix New media in the first quarter of the total revenue of 357.1 million yuan (about 57.5 million U.S. dollars), compared with the same period last year, 281.4 million yuan growth of 26.9%. Phoenix New Media total revenue growth, mainly due to net advertising revenue year-on-year growth of 41.1%, and pay service revenue growth of 6.3% year-on-year;

-Phoenix New Media net profit for the first quarter is 62.2 million yuan (about 10 million U.S. dollars), compared with the same period last year, 39.2 million yuan growth of 58.6%;

-Not in accordance with the United States General accounting standards (excluding equity incentive payments), Phoenix New media in the first quarter adjusted net profit of 56.9 million yuan (about 9.2 million U.S. dollars), compared with the same period last year 47.2%;

-Phoenix New Media The first quarter of the United States depository receipts in the U.S. receipts of the thin 0.80 yuan (about 0.13 U.S. dollars), compared with the same period last year 60.6%;

-Not in accordance with the United States General accounting standards (excluding equity incentive payments), Phoenix New media in the first quarter of the United States depository receipts after the adjustment diluted earnings of 0.73 yuan (about 0.12 U.S. dollars), compared with the same period last year 49.1%.

Financial analysis of the first quarter:

Revenue

Phoenix New Media in the first quarter of the total revenue of 357.1 million yuan (about 57.5 million U.S. dollars), compared with the same period last year, 281.4 million yuan growth of 26.9%.

Phoenix New Media net advertising revenue in the first quarter (excluding advertising agency service charge) for 234.9 million yuan (about 37.8 million U.S. dollars), compared with the same period last year, 166.4 million yuan growth of 41.1%, mainly because of the average revenue per advertiser growth and the number of advertisers increased. Phoenix New Media in the first quarter of each advertiser average income of 900,000 yuan (about 1 million U.S. dollars), compared with the same period last year 34.4%, Phoenix New media in the first quarter of the total number of advertisers 253, compared with the same period last year increased 5%.

Phoenix New Media first quarter paid service revenue of 122.2 million yuan (about 19.7 million U.S. dollars), compared with the same period last year, 114.9 million yuan growth of 6.3%. Phoenix New Media paid service mainly includes two sub services, namely mobile value-added services and games and other business. Phoenix New Media first quarter mobile value-added services revenue of 98.2 million yuan (approx.

15.8 million dollars), up 2.4% from 95.9 million yuan a year earlier. Phoenix New Media in the first quarter from the game and other business revenue for the 24 million yuan (about 3.9 million U.S. dollars), compared to the same period last year, 19 million yuan growth of 26.4%, mainly due to the company's game platform on the revenue growth of the web game.

Revenue cost and gross profit

Phoenix New Media first quarter revenue cost of 173.9 million yuan (about 28 million U.S. dollars), compared with the same period last year, 143.9 million yuan growth of 20.9%. Phoenix New media revenue cost growth, mainly due to content and operating costs, as well as sales tax and surcharge growth. Phoenix New Media content and operating costs for the first quarter of 74.1 million yuan (about 11.9 million U.S. dollars), higher than the same period last year 57.1 million yuan, mainly due to staff related cost growth. Phoenix New Media first quarter business tax and surcharge is 25.3 million yuan (about 4.1 million U.S. dollars), higher than the same period last year 18.8 million U.S. dollars, mainly due to net advertising revenue growth. Phoenix New Media in the first quarter to the telecom operators and channel partners to pay the revenue share of the cost of 53.7 million yuan (about 8.6 million U.S. dollars), higher than the same period last year 49.5 million yuan, mainly due to mobile value-added services revenue growth. Phoenix New Media first-quarter bandwidth cost of 20.8 million yuan (about 3.3 million U.S. dollars), higher than the same period last year, 18.4 million yuan, mainly because of the huge increase in user traffic. Phoenix New Media in the first quarter of the revenue cost of 3 million yuan (about 500,000 U.S. dollars) of the equity incentive spending, the same period last year, the revenue cost of 600,000 yuan in the equity incentive spending. Phoenix New Media equity incentive spending growth, mainly because the company in 2013 years, the new award of equity.

Phoenix New Media first-quarter gross profit of 183.3 million yuan (about 29.5 million U.S. dollars), compared with the same period last year, 137.5 million yuan growth of 33.3%. Phoenix New Media in the first quarter gross profit margin of 51.3%, higher than the same period last year 48.9%, mainly due to higher profit margins of the advertising services business revenue contribution increased. Excluding the impact of equity incentive payments (not in accordance with U.S. General Accounting standards), Phoenix New media after the first quarter adjusted gross profit margin of 52.1%, higher than the same period last year 49.1%.

Operating expenses and operating profit

Phoenix New Media in the first quarter of the total operating expenditure of 140.2 million yuan (about 22.6 million U.S. dollars), compared with the same period last year, 105.5 million yuan growth of 32.9%. Phoenix's growth in new media operations is mainly attributable to increased employee-related costs and spending growth associated with corporate marketing and promotional activities. Phoenix New Media in the first quarter of the total operating expenses of the 7.9 million yuan (about 1.3 million U.S. dollars) in the equity incentive spending, the same period last year, the total operating expenditure into the renminbi-1.2 million yuan of equity incentive spending. Phoenix New Media equity incentive spending growth, mainly because the company in 2013 years, the new grant of equity.

Phoenix New Media operating profit in the first quarter of 43.1 million yuan (about 6.9 million U.S. dollars), compared with the same period last year, 32 million yuan growth of 34.7%. Phoenix New Media operating profit margin in the first quarter of 12.1%, higher than the same period last year 11.4%, mainly due to the revenue from the advertising business contributed to increase.

Not in accordance with the United States General accounting standards (excluding equity incentive payments), Phoenix New media after the first quarter adjusted operating profit of 54 million yuan (about 8.7 million U.S. dollars), compared with the same period last year, 31.4 million yuan growth of 71.7%. Not in accordance with the United States General accounting standards (excluding equity incentive payments), Phoenix New media after the first quarter adjusted operating profit margin of 15.1%,

Above 11.2% in the same period last year.

Exchange losses and interest income

Other revenues from Phoenix's new media reflect interest income, exchange gains and losses, income from the disposal of one of its subsidiaries, revenue from equity investment acquisitions, losses from equity investments, and other net income. The other net income of Phoenix New media mainly includes government subsidy and so on.

Phoenix New Media first-quarter interest income is 12 million yuan (about 1.9 million U.S. dollars), higher than the same period last year, 6.9 million yuan. Phoenix New Media in the first quarter of the exchange loss of 6.9 million yuan (about 1.1 million U.S. dollars), compared with the same period last year, exchange earnings of 2.2 million yuan. Phoenix New Media in the first quarter of the exchange losses, mainly due to the renminbi depreciation against the dollar.

Net profit/Loss

Phoenix New Media net profit for the first quarter is 62.2 million yuan (about 10 million U.S. dollars), compared with the same period last year, 39.2 million yuan growth of 58.6%. Phoenix's new media had a net profit margin of 17.4% in the first quarter, up from 13.9% in the same period last year. Phoenix New Media in the first quarter of the United States depository receipts in the U.S. receipts for a thin 0.80 yuan (about 0.13 U.S. dollars), the same period last year, the United States depository receipts for a thin income of 0.50 yuan, an increase of 60.6% per cent.

Not in accordance with the United States General accounting standards (excluding equity incentive payments), Phoenix New media after the first quarter adjusted net profit of 56.9 million yuan (about 9.2 million U.S. dollars), compared with the same period last year, 38.7 million yuan growth of 47.2%. Not in accordance with the United States General accounting standards (excluding equity incentive spending), Phoenix New media in the first quarter adjusted net profit margin of 15.9%, higher than the same period last year 13.7%. Not in accordance with the United States General accounting standards (excluding equity incentive expenses), Phoenix New media in the first quarter of the United States depository vouchers adjusted after the thin income of 0.73 yuan (about 0.12 U.S. dollars), the same period last year for 0.49 Yuan, the year-on-year growth of 49.1%.

In the first quarter of the new media, the weighted average of US depository receipts for each share of US depository receipts was 77759176 shares. As of March 31, 2014, Phoenix New Media in the external circulation of common stock of 601340285 shares, equivalent to the external circulation of the United States depository Receipts total of 75167536 shares.

Performance Outlook:

Phoenix New Media estimates that the total revenue for the second quarter of the 2014 fiscal year is RMB 405 million to 418 million yuan, net advertising revenue for the renminbi 290 million to 298 million yuan, paid service revenue for the renminbi 115 million yuan to 120 million yuan.

These expectations reflect the current and preliminary views of the company based on market and operating conditions, and may be adjusted in the future.

Conference：

Phoenix New media will be in the U.S. Eastern Time May 12 21:00 (Beijing time May 13 9:00) conference call to discuss the first quarter of financial performance and operational performance. To participate in the Phoenix New media conference call, international investors can call +6567239385, mainland China investors can call 4001200654, China Hong Kong investors can call

+85230512745, U.S. investors can call +18456750438, the password is "33941477".

U.S. Eastern time before May 20, international investors can call +61290034211, China's mainland investment can call 4006322162, U.S. investors can call +16462543697, Hong Kong, China investors can call + 85230512780, listen to Phoenix New media conference call recording, the password is "33941477".

In addition, investors can log on to the http://ir.ifeng.com of the Investor Relations page of the Phoenix New media website and listen to the webcast and recording of the teleconference.

Stock price change:

That day, Phoenix New media shares in the New York Stock Exchange [Weibo], the regular transaction rose 0.46 U.S. dollars, closed at 9.19 U.S. dollars, a gain of 5.27%. In the past 52 weeks, the Phoenix New media has the most stock price of 13.58 U.S. dollars, the lowest price of 3.79 U.S. dollars.