{"id":383502,"date":"2020-11-17T17:03:28","date_gmt":"2020-11-17T22:03:28","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=383502"},"modified":"2020-11-17T17:03:28","modified_gmt":"2020-11-17T22:03:28","slug":"phoenix-new-media-reports-third-quarter-2020-unaudited-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/phoenix-new-media-reports-third-quarter-2020-unaudited-financial-results\/","title":{"rendered":"Phoenix New Media Reports Third Quarter 2020 Unaudited Financial Results"},"content":{"rendered":"
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Live Conference Call to be Held at 8:00 PM U.S. Eastern Time on November 17, 2020<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n BEIJING<\/span>, Nov. 17, 2020<\/span> \/PRNewswire\/ — Phoenix New Media Limited (NYSE: FENG) (“Phoenix New Media”, “ifeng” or the “Company”), a leading new media company in China<\/span>, today announced its unaudited financial results for the third quarter ended September\u00a030, 2020.<\/p>\n

Mr.\u00a0Shuang Liu, CEO of Phoenix New Media, commented, “We remained steadfast in our commitment to providing a superior user experience, fortifying our content leadership, and augmenting our monetization capabilities in the third quarter of 2020. To further improve iFeng’s user engagement and user retention levels, we refined the platform’s content recommendation engine while also enhancing its user experience in turn. At the same time, we maintained our focus on boosting our leadership in those content verticals which we believe to have long-term strategic value. On the innovation front, we maintained focus on the cultivation of our existing business initiatives while also carefully exploring a number of other potential business opportunities. Looking ahead, we are convinced that our professional technical expertise, content leadership, and brand influence will continue to place us at the tip of the new media spear, allowing us to capture those segments of the market with promising growth potential as the world rebounds from the COVID-19 pandemic.”<\/p>\n

Mr.\u00a0Edward Lu, CFO of Phoenix New Media, further stated, “In the face of macroeconomic uncertainties, the COVID-19 pandemic, and escalating geopolitical tensions, we maintained our laser-sharp focus on the refinement of our cost structures during the third quarter of 2020. In light of the current situation, we expect the new media industry in China<\/span> to continue facing pressure throughout the remainder of the year. Nevertheless, despite these short-term setbacks, we believe that our steady progress on multiple fronts will provide us with additional opportunities to augment our business fundamentals, enhance our growth quality, and ultimately generate long-term return to our shareholders.”<\/p>\n

\n Third quarter 2020 Financial Results<\/b>\n <\/p>\n

As disclosed in the second quarter 2020 unaudited financial results announcement made on August 17, 2020<\/span>, the Company sold all of its investment in Beijing Yitian Xindong Network Technology Co., Ltd. (“Yitian Xindong” or “Tadu”) in the second quarter of 2020 and the disposal of Tadu was qualified for reporting as a “discontinued operation” in the Company’s financial statements. Accordingly, Tadu’s results of operations have been excluded from the Company’s results from continuing operations in the condensed consolidated statements of comprehensive income\/(loss) and are presented in separate line items as discontinued operations for all prior periods. The related assets and liabilities associated with the discontinued operations in the prior year consolidated balance sheets were classified as assets\/liabilities held for sale to provide the comparable financial information, and the financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated.<\/p>\n

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\n REVENUES<\/i>
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Total revenues in the third quarter of 2020 decreased by 10.9% to RMB303.0 million<\/span> (US$44.6 million<\/span>) from RMB339.9 million<\/span> in the same period of 2019, which was primarily due to the negative impact of the COVID-19 outbreak and heightened industry competitions. <\/p>\n

Net advertising revenues in the third quarter of 2020 decreased by 10.2% to RMB281.3 million<\/span> (US$41.4 million<\/span>) from RMB313.1 million<\/span> in the same period of 2019. The decrease was primarily attributable to the negative impact of the COVID-19 outbreak and heightened industry competitions. <\/p>\n

Paid services revenues[1]<\/sup>\u00a0in the third quarter of 2020 decreased by 19.0% to RMB21.7 million<\/span> (US$3.2 million<\/span>) from RMB26.8 million<\/span> in the same period of 2019. Revenues from paid contents in the third quarter of 2020 decreased by 34.3% to RMB8.9 million<\/span> (US$1.3 million<\/span>) from RMB13.5 million<\/span> in the same period of 2019, which was mainly due to the tightening of rules and regulations on digital reading in China<\/span> and in line with the broader market conditions. Revenues from MVAS and games were small and had been declining for the past years. Revenues from others in the third quarter of 2020 were RMB9.4 million<\/span> (US$1.4 million<\/span>), which remained almost unchanged from the same period of 2019.\u00a0<\/p>\n

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\n [1]<\/sup> Paid services revenues comprise of (i)\u00a0revenues from paid contents excluding those from Tadu, which includes digital reading, audio books, paid videos, and other content-related sales activities, (ii)\u00a0revenues from games, which includes web-based games and mobile games, (iii)\u00a0revenues from MVAS, and (iv) revenues from others.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

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\n COST OF REVENUES<\/i>
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Cost of revenues in the third quarter of 2020 decreased by 12.3% to RMB150.0 million<\/span> (US$22.1 million<\/span>) from RMB171.1 million<\/span> in the same period of 2019. The decrease in cost of revenues was mainly due to the following:<\/p>\n