{"id":528627,"date":"2021-08-16T17:03:16","date_gmt":"2021-08-16T21:03:16","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/phoenix-new-media-reports-second-quarter-2021-unaudited-financial-results\/"},"modified":"2021-08-16T17:03:16","modified_gmt":"2021-08-16T21:03:16","slug":"phoenix-new-media-reports-second-quarter-2021-unaudited-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/phoenix-new-media-reports-second-quarter-2021-unaudited-financial-results\/","title":{"rendered":"Phoenix New Media Reports Second Quarter 2021 Unaudited Financial Results"},"content":{"rendered":"
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Live Conference Call to be Held at 9:00 PM U.S. Eastern Time on August 16, 2021<\/h2>\n

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

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\n BEIJING<\/span>, Aug.\u00a016, 2021 \/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 second quarter ended June 30, 2021<\/span>.<\/p>\n

Mr. Shuang Liu<\/span>, CEO of Phoenix New Media, commented, “While certain segments of the advertising market continued to experience downward pressure and industry-wide intensified competition, we have decided to bolster our competitive differentiation by constructing our content ecosystem. During the second quarter of 2021, we refined our professional content production capabilities to provide our audience with a steady flow of original, timely, and premium content. In addition, we upgraded the user interface and AI algorithms of our iFeng app to deliver more personalized and engaging content offerings to our users. Above all, we continued to diversify our revenue streams and revitalize our growth engines by exploring new business initiatives. Going forward, by leveraging our quality content portfolio, efficient distribution networks and cultivation of potential business opportunities, we will strive to adapt to the changing market dynamic and launch a renewed growth cycle to generate lasting shareholder value.”<\/p>\n

Mr. Edward Lu<\/span>, CFO of Phoenix New Media, further stated, “During the second quarter of 2021, we embraced industry challenges and strategically increased our investment in our content ecosystem to strengthen our long-term competitive differentiation. Meanwhile, we continued to manage our expenses prudently and monitor the ROI in every area of our business closely. Looking ahead, we plan to continue exploring new monetization venues, enhancing our operating efficiency, and fueling the growth of our new initiatives and brand advertising business. This will help us to diversify our overall revenue mix and accelerate our return to profitability.”<\/p>\n

\n Second Quarter 2021 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 had been excluded from the Company’s results from continuing operations in the condensed consolidated statements of comprehensive income\/(loss) and were presented in separate line items as discontinued operations for all prior periods. 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 second quarter of 2021 decreased by 17.8% to RMB256.7 million<\/span> (US$39.8 million<\/span>) from RMB312.3 million<\/span> in the same period of 2020, primarily due to the year-over-year decline in the Company’s net advertising revenues. Total revenues in the second quarter of 2021 increased by 13.5% from RMB226.1 million<\/span> in the first quarter of 2021.<\/p>\n

Net advertising revenues in the second quarter of 2021 decreased by 18.6% to RMB233.0 million<\/span> (US$36.1 million<\/span>) from RMB286.3 million<\/span> in the same period of 2020, mainly due to the reduction in advertising spending of advertisers from certain industries and industry-wide intensified competition in the second quarter of 2021. <\/p>\n

Paid services revenues[1]<\/sup>\u00a0in the second quarter of 2021 decreased by 8.8% to RMB23.7 million<\/span> (US$3.7 million<\/span>) from RMB26.0 million<\/span> in the same period of 2020. Revenues from paid contents in the second quarter of 2021 decreased by 32.4% to RMB9.6 million<\/span> (US$1.5 million<\/span>) from RMB14.2 million<\/span> in the same period of 2020, mainly due to the trend towards free online reading in the online reading market. Revenues from E-commerce and others in the second quarter of 2021 increased by 19.5% to RMB14.1 million<\/span> (US$2.2 million<\/span>) from RMB11.8 million<\/span> in the same period of 2020, which was mainly caused by the increase in revenues from E-commerce business.\u00a0<\/p>\n

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\n [1]<\/sup> Prior to 2021, paid services revenues comprised of (i)\u00a0revenues from paid contents, which included digital reading, audio books, paid videos, and other content-related sales activities, (ii)\u00a0revenues from games, which included web-based games and mobile games, (iii)\u00a0revenues from MVAS, and (iv) revenues from others. <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n As revenues from games and revenues from MVAS were small and had been declining for the past years, to better reflect the Company’s paid services revenues disaggregated by products and services, beginning from January 1, 2021, paid services revenues have been re-grouped and comprise of (i) revenues from paid contents, which includes digital reading, audio books, paid videos, and other content-related sales activities, (ii) revenues from E-commerce and others, which mainly includes revenues from E-commerce, MVAS, games and others. For comparison purposes, the revenues from paid services for the quarters of 2020 have been retrospectively re-classified.<\/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 second quarter of 2021 increased by 9.9% to RMB137.0 million<\/span> (US$21.2 million<\/span>) from RMB124.7 million<\/span> in the same period of 2020. The increase in cost of revenues was mainly due to the following:<\/p>\n