Phoenix New Media (NYSE: FENG)

Transcription

1 Phoenix New Media (NYSE: FENG) China s Leading New Media Platform: Where Internet, Mobile and TV Truly Converge November 2013

2 Disclaimer This presentation contains forward looking statements. These statements are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of These forward looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates and similar statements. Among other things, the business outlook and quotations from management in this presentation, as well as Phoenix New Media s strategic and operational plans, contain forward looking statements. Phoenix New Media may also make written or oral forward looking statements in its periodic reports to the U.S. Securities and Exchange Commission ( SEC ) on Forms 20 F and 6 K in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Phoenix New Media s beliefs and expectations, are forward looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward looking statement, including but not limited to the following: the Company s goals and strategies; the Company s future business development, financial condition and results of operations; the expected growth of the online and mobile advertising, online video and mobile paid service markets in China; the Company s reliance on online advertising and MIVAS for the majority of its total revenues; the Company s expectations regarding demand for and market acceptance of its services; the Company s expectations regarding the retention and strengthening of its relationships with advertisers, partners and customers; fluctuations in the Company s quarterly operating results; the Company s plans to enhance its user experience, infrastructure and service offerings; the Company s reliance on mobile operators in China to provide most of its MIVAS; changes by mobile operators in China to their policies for MIVAS; competition in its industry in China; and relevant government policies and regulations relating to the Company. Further information regarding these and other risks is included in the Company s filings with the SEC, including its registration statement on Form F 1, as amended, and its annual report on Form 20 F. All information provided in this presentation is as of the date of this presentation, and Phoenix New Media does not undertake any obligation to update any forward looking statement, except as required under applicable law. 2

3 Company Snapshot Exchange / Ticker Market Cap Price Weighted Avg. ADS Outstanding *As of November 15, 2013 NYSE: FENG US$ 800M US$ M Analysts Coverage Morgan Stanley - Gillian Chung Deutsche Bank - Alan Hellawell Macquarie Group - Jiong Shao J.P.Morgan - Alex Yao CICC - Haofei Chen 3

4 China s Leading New Media Platform: Where Internet, Mobile and TV Truly Converge #1-ranked news channel by daily unique visitors (1) #5-ranked Chinese website by daily page view (1) #7-ranked Chinese website by monthly unique visitor (1) #7-ranked Chinese website by daily time spent (1) 22M + daily mobile unique visitors (2) Notes 1. iresearch s iusertracker ranking for September Operating statistics in September 2013 (company data) 4

5 Leading New Media Convergence Platform Internet Portal (40+ Channels) Blog Web-based Game Platform Premium exclusive content from Phoenix TV Video Professional News Documentaries In-house Produced Content Mobile WAP Portal Mobile Apps Digital Reading Mobile Video Mobile Game WVAS Three avenues for connecting with end users 5

6 Unique Roots Phoenix TV founded- a Leading Chinese Language TV Network 2nd largest shareholder of Phoenix TV VC investors New Media subsidiary established Spin-off and established converged tech platform IPO on NYSE: May 12,

7 Preferred Media Destination for Mainstream Internet Users Daily UV: 20% Increase YoY Monthly UV: 267 million Traffic Growth on ifeng.com (Millions) Diverse and Premium Content 3 rd party content In-house produced content ifeng strong media DNA from PTV Phoenix TV content UGC Editing and Production Capability #2 home page Daily Unique Visitor (1) among all Chinese media websites Q3 Daily UV 2013Q3 Monthly UV 200 Higher user demographic with better education, higher income and more mature. Source: iresearch / iusertracker Source: iresearch data 7

8 Differentiated & Profitable Online Video Strategy #8-ranked Chinese online video website by Daily Unique Visitor. Online Video Mobile Video Source: iresearch / iusertracker Professional News & short-form video clips Phoenix TV + Differentiated 3 rd party video Unique and differentiated in-house productions Low content and bandwidth cost Highly suitable for mobile consumption High ad frequency 8

9 Innovative Mobile Paid Services + 3G Portal / APP WVAS Mobile Newspap er Mobile Video Digital Book Mobile Apps 3G Portal Large and quality mobile user base with strong monetization potential. WAP portal and APPs contributed 10% of total advertising revenue in 13Q3. Comprehensive mobile paid services coverage from 2G to 3G: Mobile Video, Mobile Audio, Mobile Digital Reading, Mobile Games. WAP Portal + APPs Daily Active Users: 22M + Source: Company data 9

10 Attractive ROI Driving Strong Ad Growth Across Portal, Video & Mobile 4I for ROI 522 Adv Clients in 2012 / 336 in 3Q13 Integrated solution Influential brand Insightful content Intended target audience Average Rev Per Advertiser (RMB in Thousands) 800 Auto Consumer Goods Financial Services E-commerce Q3 2013Q3 Source: Company data 10

11 Near and Mid-Term Growth Strategies Monetization Explore mobile advertising Keep paid services $ stable, grow games $ Capture news video ad$ shift from TV to online China s media gateway of choice across devices Grow Online Ad Sales through big idea + big data Enhance product innovation and user experience Horizontally expand female & commercial channels Accelerate 3g.ifeng and mobile app dev. Co-op and investment for synergy and strategy User Base

12 Financial Overview

13 Revenue and Profit Growth Revenue (US$ Mn) (1) % 49% % 55% 49 36% Q12 1Q13 2Q13 3Q13 Advertising 64% 46 41% 59% 58% Paid Services % 41% 59% Adjusted Net Profit & Margin (Non-GAAP) 5 0 (US$ Mn) (1) 17.7% % % 13.7% % 21.7% Q12 1Q13 2Q13 3Q13 Adjusted net profit Adjusted net margin-quarter 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Adjusted net margin-year Notes 1. Non-GAAP net income excludes preferred shares related charges and share-based compensation expenses. Preferred shares charges: 2010: US$38.0Mn; 2011: US$150.7Mn. Share-based compensation expenses: 2010: US$2.6Mn; 2011: US$ 10.5Mn; 2012: US$1.1Mn; 3Q 2012: US$0.4Mn ; 4Q 2012: US$-0.3Mn; 1Q 2013: US$-0.1Mn ; 2Q 2013: US$1.0Mn; 3Q13: US$0.3Mn 13

14 Cost of Revenues and Operating Expenses Cost of Revenues Breakdown (Non-GAAP) (1) As a % of Revenues Operating Expenses Breakdown (Non-GAAP) (1) As a % of Revenues 35% 30% 25% 20% 15% 10% 5% 0% 30.1% 23.7% 24.6% 20.1% 20.1% 18.7% 20.4% 16.0% 15.6% 17.6% 19.4% 17.1% 8.5% 6.3% 6.5% 6.7% 5.8% 6.4% 6.1% 6.3% 6.6% 5.6% 3.9% 4.8% Q12 1Q13 2Q13 3Q13 25% 20% 15% 10% 5% 0% 22.1% 19.5% 17.6% 17.3% 17.2% 15.3% 9.2% 9.4% 9.4% 7.4% 6.3% 9.1% 8.2% 8.0% 4.7% 7.1% 7.1% 6.1% Q12 1Q13 2Q13 3Q13 Revenue Sharing Fees Content and Operational Costs S&M G&A R&D Bandwidth Costs Sales Tax and Surcharges Notes 1. Excludes share-based compensation expenses: 2010: US$2.6Mn; 2011: US$7.6Mn; 2012: US$1.1Mn; 3Q 2012: US$0.4Mn ; 4Q 2012: US$-0.3Mn ; 1Q 2013: US$-0.1Mn ; 2Q 2013: US$1.0Mn; 3Q13: US$ 0.3 Mn 14

15 Key Investment Highlights Famous and Influential Media Brand Leading Internet, Mobile and TV Convergence Platform Exclusive and Proprietary Content Highly Attractive and Fast Growing User Base Multiple High-growth Revenue Streams Robust and Scalable Technology 15

16 Appendix 16

17 Ownership Structure Phoenix Satellite Television Holdings Limited 100% Phoenix Satellite Television (B.V.I.) Holdings Limited Others 100% Phoenix New Media (Hong Kong) Company Limited (Hong Kong) 53% Phoenix New Media Limited (Cayman Islands) (NYSE: FENG) 100% Phoenix Satellite Television Information Limited (B.V.I.) 100% 47% 100% Phoenix FM Limited Fenghuang On-line (Beijing) Information Technology Co., Ltd. Yifeng Lianhe (Beijing) Technology Co., Ltd. Beijing Tianying Jiuzhou Network Technology Co., Ltd. 100% Beijing Tianying Chuangzhi Advertising Co., Ltd. 17

18 Management Team Shuang Liu CEO Ya Li COO Betty Ho CFO Ling Jin EVP Education J.D., Duke Law School B.A., University of International Business & Economics, Beijing Executive Management Education, Wharton School of Business Univ of Sci & Tech of China B.C.in Finance from the University of Toronto AICPA and HKICPA EMBA, Cheung Kong Graduate School of Business Years of Experience 12+ (media industry) 18+ (Internet industry and entrepreneurship) 20+ (Internet industry, TMT, and consumer retail) 10+ (Internet industry, advertising industry) Selected Experience Phoenix TV 18

19 Balance Sheet (US$ 000 s) Key Balance Sheet Items (1) Q13 2Q13 3Q13 Cash and Term Deposit 187, , , , ,895 Accounts Receivable 32,110 45,102 42,972 52,469 52,617 Prepayment 7,362 6,831 5,773 6,272 11,525 Total Current Assets 239, , , , ,150 PP&E 6,516 16,460 15,308 16,036 16,309 Total Non-Current Assets 9,303 20,086 18,860 19,560 19,889 Accounts Payable 19,221 24,821 26,120 28,055 31,738 Salary Payable 7,169 10,213 7,792 11,334 13,632 Total Liabilities 40,946 50,533 52,291 63,361 76,187 Total Shareholders Equity 207, , , , ,852 Notes 1. The above table is the excerpts of Condensed Consolidated Balance Sheets 19

20 Key Contacts IR Team Matthew Zhao Jessie Li Website: ir.ifeng.com IR Consultant Jeremy Peruski / ICR US Investor Hotline: +1 (646)