News Column

AirMedia Announces Unaudited Second Quarter 2014 Financial Results

September 6, 2014



By a News Reporter-Staff News Editor at Marketing Weekly News -- AirMedia Group Inc. ("AirMedia" or the "Company") (Nasdaq: AMCN), a leading operator of out-of-home advertising platforms in China targeting mid-to-high-end consumers, announced its unaudited financial results for the second quarter ended June 30, 2014.

Second Quarter 2014 Financial Highlights

-- Total revenues decreased by 3.5% year-over-year to US$62.1 million. The

year-over-year decrease was primarily due to AirMedia's termination of

certain unprofitable or low-margin contracts.

-- Net revenues decreased by 3.0% year-over-year to US$61.5 million.

-- Gross profit increased by 40.5% year-over-year to US$4.6 million.

-- Net loss attributable to AirMedia's shareholders was US$5.4 million.

Basic and diluted net loss attributable to AirMedia's shareholders per

American Depositary Share ("ADS") were both US$0.10.

-- Adjusted EBITDA attributable to AirMedia's shareholders (non-GAAP),

which is EBITDA attributable to AirMedia's shareholders excluding

share-based compensation expenses, was negative US$3.7 million.

"Although the second quarter was a challenging quarter for us, we are on the right track of turnaround. Revenues from our gas station media network grew 28.7% year-over-year, demonstrating that we are on the right direction to turn around this product line. However, its quarter-over-quarter growth did not reach our internal expectation due to some pull back of orders from advertisers as a result of some mechanical malfunctions of our LED screens. The malfunctions were caused by problematic design by our LED screen supplier of their inner structure. We anticipate restoring a majority of these LED screens to proper function by the end of the third quarter of this year. This small turbulence may impact our original break-even schedule for this product line, but is not expected to change its long-term growth prospects. We expect resume normal sales of advertisement slots on the LED screens and to see a big increase in sales from this product line in the fourth quarter of this year," commented Mr. Herman Guo, chairman and chief executive officer of AirMedia.

"After Beijing, we launched our interactive platform on our TV-attached digital frames in two airports in Shanghai on June 20. We have received advertising orders on our interactive platform from various well-known international and domestic brands, including some advertisers in mobile internet sector, which rarely put orders with us before we had this innovative product," continued Mr. Guo.

"We have recently strengthened our team of Wi-Fi business. With the addition of industry guru and technical expert, we are developing the platform and portal for our in-flight Wi-Fi business," further commented Mr. Guo.

"Our new business initiatives such as our in-flight Wi-Fi and on-train Wi-Fi business are at the stage of investment, which was reflected in the increase in our operating expenses. We believe we are investing in the Company's future. We find these investments to be prudent and expect them to bring tremendous growth to the Company in the future," commented Mr. Richard Wu, AirMedia's chief financial officer.

Second Quarter 2014 Financial Results

Keywords for this news article include: Advertising, AirMedia Group Inc.

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Source: Marketing Weekly News


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