Phoenix New Media total revenue of the third quarter is 378.7 million yuan

Phoenix New Media (Nyse:feng) today released its third-quarter financial results for fiscal year 2013 as at September 30. The report shows that Phoenix New media in the third quarter total revenue of 378.7 million yuan (about 61.9 million U.S. dollars), than the same period last year, 286.4 million yuan growth of 32.3%; Net profit is 80 million yuan (about 13.1 million USD), 11.5 million yuan grew by 593.5% over the same period last year.

Main achievements:

-Phoenix New Media total revenue in the third quarter is 378.7 million yuan (about 61.9 million U.S. dollars), compared with the same period last year, 286.4 million yuan growth of 32.3%. Phoenix New Media total revenue growth, mainly due to net advertising revenue year-on-year growth of 59.3%, as well as pay service revenue growth of 6.2% year-on-year;

-Phoenix New Media third-quarter gross profit was 184.3 million yuan (about 30.1 million U.S. dollars), compared with the same period last year, 112.5 million yuan growth of 63.9%;

-Phoenix New Media net profit for the third quarter was 80 million yuan (about 13.1 million U.S. dollars), which grew 593.5% from the 11.5 million yuan in the same period last year. Phoenix New Media in the third quarter net profit margin of 21.1%, the same period last year 4%. Phoenix New Media in the third quarter of the United States depository receipts in the U.S. receipts for a thin 1.04 yuan (about 0.17 U.S. dollars), compared with the same period last year, 0.14 yuan growth of 624.4%;

-Not in accordance with the United States General accounting standards (excluding equity incentive payments), Phoenix New media in the third quarter adjusted net profit of 82 million yuan (about 13.4 million U.S. dollars), compared with the same period last year, 14.1 million yuan growth of 481.5%. Not in accordance with the United States General accounting standards (excluding equity incentive payments), Phoenix New media in the third quarter adjusted net profit margin of 21.7%, the same period last year 4.9%. Not in accordance with the United States General accounting standards (excluding equity incentive payments), Phoenix New media after the third quarter adjustment per share of the United States depository receipts is 1.06 yuan (about 0.17 U.S. dollars), compared with the same period last year, 0.17 yuan growth of 507.5%.

Financial Analysis:

Revenue

Phoenix New Media in the third quarter of the total revenue of 378.7 million yuan (about 61.9 million U.S. dollars), compared with the same period last year, 286.4 million yuan growth of 32.3%.

Phoenix New Media in the third quarter net advertising revenue of 223.8 million yuan (about 36.6 million U.S. dollars), compared with the same period last year, 140.5 million yuan growth of 59.3%. Phoenix New Media net advertising revenue growth, mainly due to the increase in average revenue per advertiser and the total number of advertisers increased. Phoenix New Media in the third quarter per advertiser average income of 700,000 yuan (about 100,000 U.S. dollars), compared with the same period last year 13.8%, the number of advertisers is 336, compared with the same period last year, a 40% increase.

Phoenix New media third-quarter pay service revenue of 154.9 million yuan (about 25.3 million U.S. dollars), compared with the same period last year, 145.8 million yuan growth of 6.2%. Phoenix New Media third quarter mobile value-added services revenue of 132.4 million yuan (about 21.6 million U.S. dollars), compared with the same period last year, 138.4 million yuan decline 4.3%, mainly due to 2G text information based on the use of the second billing service decline. Phoenix New Media in the third quarter from the game and other business revenue for the 22.5 million yuan (about 3.7 million U.S. dollars), compared with the same period last year, 7.4 million yuan growth of 202.6%. Phoenix New Media The third quarter of the game and other business revenue growth, mainly due to the company's gaming platform for the growth of web game revenue.

Revenue cost and gross profit

Phoenix New Media third-quarter revenue cost of 194.4 million yuan (about 31.8 million U.S. dollars), compared with the same period last year, 173.9 million yuan growth of 11.8%, mainly due to the content cost and operating costs as well as sales tax and VAT growth, but is offset by revenue sharing costs and broadband cost reduction. Phoenix New Media in the third quarter to telecom operators and channel partners to pay the revenue sharing cost of 76.2 million yuan (about 12.4 million U.S. dollars), lower than the same period last year 79.4 million yuan, mainly due to the decline in wireless value-added services revenue. Phoenix New Media third-quarter content and operating costs of 75.5 million yuan (about 12.3 million U.S. dollars), higher than the same period last year 60.1 million yuan, mainly due to the increase in staff related costs. Phoenix New media third-quarter bandwidth cost of 18.3 million yuan (about 3 million U.S. dollars), lower than the same period last year 20.2 million yuan, mainly due to the implementation of more efficient bandwidth management measures. Phoenix New Media third quarter business tax and surcharge is RMB 24.4 million yuan (about 4 million U.S. dollars), the same period last year for 14.2 million yuan. Phoenix New Media in the third quarter of the revenue cost of 1.9 million yuan (about 300,000 U.S. dollars) of equity incentive spending, the same period last year accounted for 600,000 yuan in the equity incentive spending. Phoenix New Media equity incentive spending growth, the main companies in the 2013 fiscal year, the new award of stock options.

Phoenix New Media third-quarter gross profit is 184.3 million yuan (about 30.1 million U.S. dollars), compared with the same period last year, 112.5 million yuan growth of 63.9%. Phoenix New Media third-quarter gross profit margin of 48.7%, higher than the same period last year 39.3%. Phoenix New Media gross margin growth, mainly due to revenue from advertising and web game growth. Excluding the impact of equity incentive payments (not in accordance with U.S. General Accounting standards), Phoenix New Media adjusted gross margin for the second quarter of 49.2%, higher than the same period last year 39.5%.

Operating expenses and operating profit

Phoenix New Media total operating expenditure for the third quarter is 109.7 million yuan (about 17.9 million U.S. dollars), compared with the same period last year, 108.8 million yuan growth of 0.8%. Phoenix's growth in new media operations has been partly offset by a decline in the provision for bad debts, mainly due to increased staff-related spending and increased spending related to marketing and promotional activities taken by the company. Phoenix New Media in the third quarter of the operating expenditure of 400,000 yuan (about 100,000 U.S. dollars) in the equity incentive spending, the same period last year accounted for 2 million yuan in the equity incentive spending. Phoenix New Media equity incentive spending fell year-on-year, mainly because the company made a calibration adjustment.

Phoenix New Media operating profit for the third quarter of 74.6 million yuan (about 12.2 million U.S. dollars), compared with the same period last year, 3.7 million yuan significantly increased. Phoenix's new media operating margin was 19.7% in the third quarter, up from 1.3% in the same period last year. Phoenix New Media operating profit growth, mainly because of advertising and web game revenue growth.

Not in accordance with the United States General accounting standards (excluding equity incentive payments), Phoenix New media after the third quarter adjusted operating profit of 76.6 million yuan (about 12.5 million U.S. dollars), compared with the same period last year, 6.3 million yuan significantly increase. Not in accordance with U.S. general accounting standards (excluding equity incentive spending), Phoenix New media in the third quarter adjusted operating profit margin of 20.2%, higher than the same period last year 2.2%.

Exchange gains and interest income

Phoenix New Media exchange gains in the third quarter were RMB 3 million (about 500,000 U.S. dollars), and the exchange loss in the same period last year was 2 million yuan. Phoenix New Media exchange gains in the third quarter came mainly from the appreciation of the renminbi against the dollar. Phoenix New Media third-quarter interest income is 8.9 million yuan (about 1.4 million U.S. dollars), higher than the same period last year, 8.2 million yuan.

Net profit/Loss

Phoenix New Media net profit for the third quarter is 80 million yuan (about 13.1 million U.S. dollars), compared with the same period last year, 11.5 million yuan growth of 593.5%. Phoenix New Media in the third quarter net profit margin of 21.1%, the same period last year 4%. Phoenix New Media in the third quarter of the United States depository receipts in the U.S. receipts for a thin 1.04 yuan (about 0.17 U.S. dollars), compared with the same period last year, 0.14 yuan growth of 624.4%.

Not in accordance with the United States General accounting standards (excluding equity incentive payments), Phoenix New media after the third quarter adjusted net profit of 82 million yuan (about 13.4 million U.S. dollars), compared with the same period last year, 14.1 million yuan growth of 481.5%. Not in accordance with the United States General accounting standards (excluding equity incentive payments), Phoenix New media in the third quarter adjusted net profit margin of 21.7%, the same period last year 4.9%. Not in accordance with the United States General accounting standards (excluding equity incentive payments), Phoenix New media after the third quarter adjustment per share of the United States depository receipts is 1.06 yuan (about 0.17 U.S. dollars), compared with the same period last year, 0.17 yuan growth of 507.5%.

In the third quarter, Phoenix New media used to calculate the U.S. depository receipts for each share of the United States depository receipts of the weighted average of 77223579 shares.

Stock options:

October 2013, the Phoenix New media under the 2008 option plan to the company employees can buy up to 6324500 shares of a common stock options.

Performance Outlook:

Phoenix New Media estimated that the third quarter of the 2013 fiscal year total revenue of 368 million yuan to 378 million yuan, net advertising revenue for the renminbi 244 million to 249 million yuan, paid service revenue for the RMB 124 million to 129 million yuan. This expectation reflects the current and preliminary view 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 November 13 19:00 (Beijing time November 14 8:00) conference call to discuss the third quarter financial performance and operational performance. To participate in the Phoenix New media conference call, U.S. investors can call +18456750438, international investors can call +6567239385, China Hong Kong investors can call +85230512745, mainland China investors can call 4001200654, The password is "94119115".

U.S. Eastern time before August 20, U.S. investors can call +16462543697, international investors can call +61281990299, mainland China investors can call 4001200931, Hong Kong, China investors can call + 85230512780, listen to Phoenix New media conference call recording, the password is "94119115".

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.