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Phoenix New Media to IPO on NYSE

SEC, 4/21/11

Chinese online, wireless and TV new media company Phoenix New Media (iFeng.com), a subsidiary of Phoenix TV (2008.HK), has filed its IPO prospectus with the US Securities and Exchange Commission to list on the New York Stock Exchange under the ticker symbol "FENG." Deutsche Bank Securities, Morgan Stanley, Macquarie Capital, Cowen and Company, and China International Capital Corporation (CICC) are serving as underwriters.

Phoenix New Media reported total revenues of RMB 222.6 mln, RMB 262.3 mln and RMB 528.7 mln in 2008, 2009, and 2010, respectively, representing a compound annual growth rate of 54.1%.

Net loss attributable to Phoenix New Media Limited was RMB 28.2 mln in 2008. Net income attributable to Phoenix New Media Limited was RMB 0.3 mln and RMB 74.1 mln (USD 11.2 mln) in 2009 and 2010, respectively.

Net advertising revenues were RMB 40.3 mln, RMB 81.6 mln and RMB 204.4 mln in 2008, 2009 and 2010, respectively, representing a CAGR of 125.3%. Phoenix New Media offers both online and video advertising. The number of advertisers reached 197, 319 and 502 as of December 31, 2008, 2009 and 2010, respectively.

Paid service revenues were RMB 182.4 mln, RMB 180.7 mln and RMB 324.3 mln (USD 49.1 mln) in 2008, 2009 and 2010, respectively, representing a CAGR of 33.4%. Paid service users grew from 6.4 mln users as of March 31, 2010, to 10.1 mln users as of March 31, 2011, representing a growth rate of 57.0% YoY. Phoenix offers a variety of paid services through all of its channels, including (i) mobile Internet and value-added services, or MIVAS, which includes digital reading services, mobile game services and wireless value-added services (WVAS), such as messaging-based services (SMS and MMS); (ii) video value-added services, or video VAS, which consist of online subscription and pay-per-view video services, mobile subscription and pay-per-view video services and video content sales and (iii) Internet value-added services, or Internet VAS.

Phoenix New Media derived 87.3%, 8.1% and 4.6% of its paid service revenues, respectively, from MIVAS, video VAS and Internet VAS in 2010. The company generates the majority of its paid service revenues from WVAS, digital reading services and mobile subscription and pay-per-view video services by providing content to mobile device users and collecting revenue shares from the relevant mobile operator. Phoenix New Media also earns a significant portion of its paid service revenues in the form of fixed fees from China Mobile (NYSE: CHL; 0941.HK) for its mobile literature services.

To view Phoenix New Media's full prospectus, please click here.

Keywords: FENG online advertising online video mobile literature Internet IPO loss revenue wireless video advertising online literature WVAS MMS SMS iFeng Phoenix New Media Phoenix TV mobile Internet 2008.HK profit mobile gaming IVAS

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