{"id":458113,"date":"2021-03-15T17:03:20","date_gmt":"2021-03-15T21:03:20","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=458113"},"modified":"2021-03-15T17:03:20","modified_gmt":"2021-03-15T21:03:20","slug":"phoenix-new-media-reports-fourth-quarter-and-fiscal-year-2020-unaudited-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/phoenix-new-media-reports-fourth-quarter-and-fiscal-year-2020-unaudited-financial-results\/","title":{"rendered":"Phoenix New Media Reports Fourth Quarter and Fiscal Year 2020 Unaudited Financial Results"},"content":{"rendered":"
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Live Conference Call to be Held at 9:00 PM U.S. Eastern Time on March 15, 2021<\/h2>\n

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

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\n BEIJING<\/span>, March 15, 2021<\/span> \/PRNewswire\/ —\u00a0Phoenix 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 fourth quarter and fiscal year ended December 31, 2020<\/span>.<\/p>\n

Mr. Shuang Liu<\/span>, CEO of Phoenix New Media, commented, “We delivered encouraging results in the fourth quarter while remaining committed to the sustained growth and evolution of our business. Despite the industry-wide challenges caused by COVID-19, we continued to bolster our news leadership during the quarter and distinctively combined our editorial expertise and cutting-edge AI algorithms to provide our users with a consistent supply of up-to-date coverage. Meanwhile, we also organized several high-profile offline events in the period to further enhance our brand influence and multifaceted value propositions for advertisers and users. For our flagship news app, iFeng, we continued to fuel the development of a more video-focused content ecosystem through a number of initiatives. Going forward, this should help us to garner more PUGC creation, expand the depth and breadth of our short-form video offerings, and stimulate the social nature of iFeng’s community to further boost user interactions and engagement on the platform.”<\/p>\n

Mr. Liu continued, “Beyond improving our core business lines, we also continued to focus on the cultivation of our new product development capabilities. During the quarter, for example, we leveraged our leadership in content production to launch our online e-commerce brand Phoenix Premium Products for our established massive user base. Going forward, we will continue to focus on the development of our content ecosystem, optimization of our current product offerings, and exploration of new business growth drivers. By advancing our competitive advantages in these key strategic areas, we will also improve our ability to capitalize on those new opportunities which may emerge as the economy continues to recover and people return to their normal ways of life.”<\/p>\n

Mr. Edward Lu<\/span>, CFO of Phoenix New Media, further stated, “Our total revenues reached RMB362.2 million<\/span> in the fourth quarter of 2020, which was in line with our previous guidance. More importantly, due to our strict cost control measures, we achieved a 33.7% year-over-year reduction in total operating expenses during the quarter. Meanwhile, we plan to continue focusing on new business models in the market while also actively exploring the development of and investment in new products to capture additional growth opportunities. We expect the combination of our growing brand influence and deep insights into new product categories will help us not only navigate the current macro uncertainties, but also seize more business opportunities with strong potential in 2021.”<\/p>\n

\n Fourth 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 fourth quarter of 2020 decreased by 9.5% to RMB362.2 million<\/span> (US$55.5 million<\/span>) from RMB400.4 million<\/span> in the same period of 2019, which was primarily due to the negative impact of the COVID-19 outbreak.<\/p>\n

Net advertising revenues in the fourth quarter of 2020 decreased by 7.3% to RMB336.7 million<\/span> (US$51.6 million<\/span>) from RMB363.1 million<\/span> in the same period of 2019. The decrease was primarily attributable to the negative impact of the COVID-19 outbreak. <\/p>\n

Paid services revenues[1]<\/sup><\/sup>\u00a0in the fourth quarter of 2020 decreased by 31.4% to RMB25.5 million<\/span> (US$3.9 million<\/span>) from RMB37.3 million<\/span> in the same period of 2019. Revenues from paid contents in the fourth quarter of 2020 decreased by 46.6% to RMB11.2 million<\/span> (US$1.7 million<\/span>) from RMB20.9 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 reflecting\u00a0the trend towards free online reading.\u00a0Revenues from MVAS and games were small and had been declining for the past years.\u00a0Revenues from others in the fourth quarter of 2020 increased by 31.2% to RMB10.9 million<\/span> (US$1.7 million<\/span>) from RMB8.3 million<\/span> in the same period of 2019, which was mainly caused by the increase in revenues from E-commerce and online real estate related services.<\/p>\n

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\n COST OF REVENUES<\/i>
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Cost of revenues in\u00a0the fourth quarter of 2020 decreased by 5.1% to\u00a0RMB179.2 million (US$27.5 million<\/span>)\u00a0from\u00a0RMB188.8 million in the same period of 2019. The decrease in cost of revenues was mainly due to the following:<\/p>\n