Beijing : 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, has announced its unaudited financial results for the third quarter ended September 30, 2009.
“We achieved continued revenue growth during the third quarter with higher quarter-over-quarter utilization rates for most of our product lines, whichreflected improving demands from advertisers,” said Herman Guo, chairman and chief executive officer of AirMedia. “We also made several achievements on media expansion during the quarter. With the commencement of operations of several new product lines in Beijing, Shanghai and Guangzhou airports, we significantly enhanced our media presence in the top four airports in China, which we believe has prepared us well to meet the increasing demands from advertisers resulting from continuously improving economic conditions and the upcoming World EXPO 2010 in Shanghai, China.”
Total revenues for the third quarter of 2009 reached US$37.7 million, representing a year-over-year increase of 11.9% from US$33.7 million and a quarter-over-quarter increase of 2.5% from US$36.8 million. The year-over-year increase was due to increases in revenues from digital frames in airports and traditional media in airports. The quarter-over-quarter increase was due to increases in revenues from digital frames in airports, traditional media in airports and digital TV screens on airplanes.
Revenues from digital TV screens in airports for the third quarter of 2009 decreased by 35.7% year-over-year and by 7.7% quarter-over-quarter to US$8.4 million, primarily due to decreases in both the number of time slots sold and the ASP of digital TV screens in airports.
Gross loss for the third quarter of 2009 was US$628,000, compared to gross profit of US$11.8 million in the same period one year ago and gross loss of US$488,000 in the previous quarter.
Gross loss as a percentage of net revenues for the third quarter of 2009 was negative 1.7%, compared to gross income as a percentage of net revenues of 36.6% in the same period one year ago and negative 1.3% in the previous quarter. The year-over-year decrease in gross profit as a percentage of net revenues was primarily due to the increase in concession fees.