Focus Media Q3 Net Revenue Down 26%
For nine months ended September 30, 2009, the company posted a net loss of $153.06m compared to net income of $113.78m for the same period in 2008. Revenue for nine months decreased to $468.39m from $598.11m in same period 2008. Operating loss of $152.64m for the nine months, compared to operating income of $130.72m for the comparable period in 2008.
The company provides the following guidance with respect to the fourth quarter ending December 31, 2009: Net revenues for LCD display networks, in-store networks and poster frame networks are expected to be no less than $92m. Net revenues for Movie theatre and traditional outdoor billboard and internet advertising services are expected to be no less than $39m.
Jason Jiang, chairman and CEO of Focus Media, said: “During this quarter, we have been doing restructurings on multiple business divisions, which lined up as follows: Firstly, we partially disposed of our equity ownership in some acquired subsidiaries in the internet advertising service division and outdoor traditional billboard division. Secondly, we terminated the acquisition contracts or renegotiated the earn-out payments with a few under-performing subsidiaries in our poster frame division and meanwhile, expedited the integration of those subsidiaries acquired in previous years.
“Thirdly, the termination of the agreement with SINA in this quarter enabled us to reevaluate some non-performing assets on our balance sheet, such as the idle digital frames due to ceasing expansion of our digital frame network and the boat-based advertising platform in response to certain new regulations. Through the above mentioned measures, we believe that the assets impairment and disposal losses, which have been negatively affecting our company since the last quarter of 2008 will come to the end by early 2010.”
Will Focus Media reach expected net revenues in Q4?
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