PRESS RELEASE
The Chairman and Chief Executive Officer of Phoenix Media Investment (Holdings) Limited ("Company" and its subsidiaries collectively "Group" or "Phoenix"), Mr. Xu Wei, said today that despite the tremendous challenges and global economic instability brought by COVID-19 pandemic during the year, Phoenix continued to bring forward the business transformation and high-quality development through various corporate strategies such as content operation, business and resources integration and synergy. Mr. Xu Wei emphasises that the brand recognition, credibility and international influence of Phoenix must be demonstrated continuously, and Phoenix shall focus on its core media business, firmly establish a strong base in Hong Kong positioning to target the Chinese communities in Hong Kong, Macau, Taiwan and around the globe, with an aim of building an international first-class Chinese Media Group. The Group's revenue for 2021 was approximately HK$3,159,240,000, which represented an increase of 4.3% over the previous year. Operating loss for the year was approximately HK$647,290,000 and the loss attributable to owners of the Company was approximately HK$456,201,000.
RESULTS
The revenue of the Group for the year ended 31 December 2021 was approximately HK$3,159,240,000 (year ended 31 December 2020: HK$3,029,046,000), which represented an increase of 4.3% over the previous year. The operating costs for the year ended 31 December 2021 increased by 7.8% to approximately HK$3,806,530,000 as a result of provision for impairment of accounts receivable from Evergrande Group (year ended 31 December 2020: HK$3,531,197,000).
The operating loss of the Group increased to approximately HK$647,290,000 for the year ended 31 December 2021, representing an increase of 28.9% over previous year as a result of provision for impairment of accounts receivable from Evergrande Group.
Fair value loss on financial assets related to subsequent measurement of internet media's investment in Particle Inc. (approximately 0.60% of the equitable interest in Particle Inc.) for the year ended 31 December 2021 was approximately HK$7,075,000 (approximately 20.20% of the equitable interest in Particle Inc. for the year ended 31 December 2020: HK$1,074,851,000).
Fair value gain of approximately HK$37,000 (year ended 31 December 2020: loss of HK$140,493,000) was recognised for the investment properties.
The loss attributable to owners of the Company was approximately HK$456,201,000, in comparison with HK1,037,043,000 for the previous year which included share of fair value loss on internet media investment of approximately HK$585,686,000.
The chart below summarises the performance of the Group for the year ended 31 December 2021 and the year ended 31 December 2020 respectively
MANAGEMENT DISCUSSION AND ANALYSIS
Comments on Segmental Information
Revenue from television broadcasting, comprising advertising, subscription and other revenue sources, which accounted for 22.3% of the total revenue of the Group for the year ended 31 December 2021, decreased by 5.8% to approximately HK$703,705,000 (year ended 31 December 2020: HK$747,052,000) as a result of the adverse impact of COVID-19 outbreak on the global economy and market condition. As the cost structure is relatively fixed, the segmental loss for the television broadcasting business was approximately HK$135,715,000 for the year ended 31 December 2021 (year ended 31 December 2020: HK$165,163,000).
Revenue from Phoenix Chinese Channel and Phoenix InfoNews Channel, which accounted for 20.0% of the total revenue of the Group for the year ended 31 December 2021, decreased by 5.7% to approximately HK$630,863,000 (year ended 31 December 2020: HK$669,266,000).
The total revenue of Phoenix Hong Kong Channel, Phoenix Movies Channel, Phoenix North America Chinese Channel, Phoenix Chinese News and Entertainment Channel and others decreased by 6.4% to approximately HK$72,842,000 (year ended 31 December 2020: HK$77,786,000).
The revenue of the internet media business for the year ended 31 December 2021 decreased by 15.3% to approximately HK$1,247,785,000 (year ended 31 December 2020: HK$1,473,327,000). The segmental loss of internet media business for the year ended 31 December 2021 was approximately HK$300,346,000 (year ended 31 December 2020: HK$1,048,389,000 as a result of significant net loss related to the investment in Particle Inc.).
The revenue of the outdoor media business for the year ended 31 December 2021 increased by 64.0% to approximately HK$942,977,000 (year ended 31 December 2020: HK$574,979,000). The segmental profit of the outdoor media business for the year ended 31 December 2021 increased by 1,162.3% to approximately HK$207,038,000 (year ended 31 December 2020: HK$16,402,000).
The segmental loss for real estate business for the year ended 31 December 2021 was approximately HK$7,716,000 (year ended 31 December 2020: HK$124,285,000), which included the net fair value gain of approximately HK$37,000 (year ended 31 December 2020: loss of HK$140,493,000), recognised for the investment properties.
BUSINESS OVERVIEW AND PROSPECTS
In 2021, Phoenix completed its shareholding restructuring, intensifying the pace of its business transformation and innovation by adopting multiple strategic measures, a continuing positive trend in its operating performance is shown. Mr. Xu Wei, the Chairman of the board of directors and Chief Executive Officer, emphasises that the brand recognition, credibility and international influence of Phoenix must be demonstrated continuously, and Phoenix shall focus on its core media business, firmly establish a strong base in Hong Kong positioning to target the Chinese communities in Hong Kong, Macau, Taiwan and around the globe, with an aim of building an international first-class Chinese media group.
In 2021, Phoenix delivered first-hand news to Chinese audiences all over the world, demonstrating its media professionalism. The global team of Phoenix focused and broadcasted live reports on a number of news events such as The 100th Anniversary of the Founding of The Communist Party of China, China-U.S. High-Level Talks in Alaska, United Nations Summit on Biodiversity, China-Russia and China-U.S. Summits, Leaders Summit on Climate, Russia-U.S. Summit and the launch of Shenzhou manned spacecrafts. The team also followed up and reported on major events such as the radical changes in Afghanistan and the return of Meng Wanzhou to China. In-depth reportings on Hong Kong's important local news such as the election of Hong Kong Election Committee were also made.
During the year, Phoenix revamped by emphasising on its news professionalism and strengthening its news live broadcast and topic selections. Programs like Phoenix Morning Express, Phoenix Midday Express and Phoenix Evening Express focused on around-the-clock press releases and prime time news, with their formats, packaging and visual effects more in line with the positioning as an international media. Phoenix Hong Kong Channel enhanced Cantonese broadcasts to serve Hong Kong and other Cantonese-speaking audiences and targeted Hong Kong's current affairs and entertainment news as two main focuses, which opened up a new broadcasting landscape. In addition, Phoenix newly launched in-depth and thoughtful topical programs such as Zoom In, Asian Financial Insight, China Insight, The Great Era, Fact Check on News and Bench Talk About Taiwan, which greatly enriched its international broadcast content using the audiovisual narrative style, whereby winning praises from the Chinese audiences.
In 2021, Phoenix's brand value continued to grow. It has been listed as Asia's 500 Most Influential Brands for 16 consecutive years and continued to be rated as Top 4 TV brands in Asia, which reflected its publicity and reputation in fields like media and culture. With international and high-quality production standards, Phoenix's programs garnered numerous awards which demonstrated Phoenix's excellent strengths and professionalism. Among which, Chief Editor's Time promotional trailer and Phoenix Morning Express promotional trailer won the gold prize and silver prize in Best News/Current Affairs Promotional Trailer Category of Promax UK Awards at Promax Asia 2021 respectively. Hovering over Macau won the silver prize in Art Direction Category of New York Festivals International TV & Films Awards. In the 2021 Asian Academy Creative Awards, Phoenix's Hong Kong Perspectives: Species unique to Hong Kong won the Best Lifestyle Programme; Save Our Planet, Save Our Children's Future won the Best Promo or Trailer; A Nian produced by C'est La Vie programme won the Best Documentary Programme (One-off); When The World Was Young - Chinese in the International Column produced by Phoenix Panorama programme won the Best Documentary Series. In addition, The World of Live Streamers produced by C'est La Vie programme won the Best Documentary Programme (One-off/Special) at the 2021 Asian Television Award.
Phoenix continues to expand its broadcast strength and international influence. Through various channels such as satellites, cable TV networks, mobile internet, over-the-top (OTT) platforms, Internet Protocol Television (IPTV), social media and content distribution platforms, Phoenix has developed a global information (Chinese language) omnimedia matrix. Moreover, Phoenix undertakes media responsibilities in the international communication practice by establishing extensive strategic cooperations with various international organisations and institutions, such as The United Nations Educational, Scientific and Cultural Organisation (UNESCO), The United Nations Development Programme (UNDP) and The World Wide Fund for Nature (WWF), as well as with prestigious think tanks such as The International Emmy Awards, The International Institute for Strategic Studies and The Brookings Institution, in order to build a cooperation platform for cultural exchange between China and the world, and to enhance its affinity and influence in international communication via the respective global, regional and demassified ways.
The Group actively brings forward the business transformation and high-quality development of the Company through various corporate strategies such as content operation, business and resources integration and synergy. The Company has been nurturing new business forms including customised media services and content consumption to further expand the realisation of our media brands, contents, platforms, traffic and resources. Meanwhile, the Group continues to promote the synergistic operation of its omni-media platforms including television broadcasting, internet media, outdoor media and magazines to provide customers with integrated media services while facilitating the ongoing improvements in its service quality and business scale.
The flagship product IFENG News App under Phoenix New Media, an internet media platform of the Group, has actively optimised the content operation and algorithmic strategy, the number and activeness of its users maintained a leading position as one of the most popular mobile terminal information products among Chinese users. While maintaining its advantageous aspects such as the in depth coverage of major events, unique and original content, quality programmes in vertical domains, and offline summits and galas, Phoenix New Media continues to innovate and build pan-knowledge Multi-Channel Network (MCN), constantly explores the operation and realisation of accounts on third party platforms, as well as develops its business layout in various areas including quality e-commerce, supply chain and consumption guidance, thus bringing new realisation channels and strategic opportunities for the Company. Moreover, during the year, Phoenix New Media actively explored synergic cooperation with other members of the Group, innovated content styles, enriched communication paths, expanded audience coverage, optimised marketing plans, and achieved mutual communication and integration in contents, broadcast and resources, thereby strengthened the overall influence and competitiveness of the Phoenix brand.
For more information, please visit http://doc.irasia.com/listco/hk/phoenixtv/annual/2021/respress.pdf.
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