Phoenix New Media Limited (NYSE: FENG) reported its total revenues for the second quarter of 2015 increased by 2.9 percent to RMB422.9 million (USD68.2 million) from RMB410.9 million in the second quarter of 2014.
Net advertising revenues (net of advertising agency service fees) for the second quarter of 2015 increased by 7.2 percent to RMB311.9 million (USD50.3 million) from RMB291.0 million in the second quarter of 2014, primarily due to 124.2 percent year-over-year growth in mobile advertising revenues.
Average revenue per advertiser increased by 20.3 percent to RMB1.1 million (USD0.2 million) and the total number of advertisers decreased by 10.9 percent to 295 in the second quarter of 2015.
Paid service revenues for the second quarter of 2015 decreased by 7.4 percent to RMB111.0 million (USD17.9 million) from RMB119.9 million in the second quarter of 2014.
Cost of revenues for the second quarter of 2015 increased by 12.6 percent to RMB222.4 million (USD35.9 million) from RMB197.5 million in the second quarter of 2014, primarily due to increases in content and operational costs and revenue sharing fees.
Gross profit for the second quarter of 2015 was RMB200.5 million (USD32.3 million), compared to RMB213.4 million in the second quarter of 2014. Gross margin for the second quarter of 2015 was 47.4 percent, compared to 51.9 percent in the second quarter of 2014. Adjusted gross margin, which excludes share-based compensation, for the second quarter of 2015 was 48.5 percent, compared to 52.5 percent in the second quarter of 2014.
Total operating expenses for the second quarter of 2015 increased by 31.4 percent to RMB173.8 million (USD28.0 million) from RMB132.3 million in the second quarter of 2014.
Phoenix New Media Limited is a leading new media company providing premium content on an integrated platform across Internet, mobile and TV channels in China.
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