FOCUS MEDIA Network Ltd (HK: 8112), the largest digital out-of-home (OOH) advertising media firm in Singapore and Hong Kong measured by the number of monitors placed in lobbies of office and commercial buildings as well as retail outlets, saw its January-September top line jump 26% y-o-y to 31.2 mln yuan.
And Co-founder, Chairman and CEO PJ Wong says more M&A activity is to come.
“We have consistently achieved double-digit growth in terms of revenue and gross profit for all three quarters of 2011 over the corresponding periods of 2010. As well, we were able to grow our digital network by 30% during the period under review,” Mr. Wong said.
January-September top-line growth was backed by stronger sales generated from an expanded network as well as sponsorship events.
Focus Media Network’s gross profit for the nine months ended 30 September 2011 increased by approximately 18% year-on-year to 23.7 mln hkd.
“If we remove the ‘one-time’ expense, we would have attained an approximately 90% increase in our net profit for the period.
Photo: Aries Consulting
“With a 250% increase in our cash and bank balance during the period under review, our company is well-positioned financially not only to withstand the uncertain global economic environment moving into 2012 but also to finance our continued growth momentum by actively seeking out synergistic acquisitions at attractive prices,” said Mr. Wong.
The Hong Kong-listed firm recorded a net loss of approximately 4.2 mln hkd for the first nine months compared to a net profit of around 1.1 mln a year earlier.
The January-September bottom line loss includes approximately 6.3 mln hkd of one-time expenses due to the group’s listing this summer and efforts to rapidly ramp up investments in marketing immediately following the listing.
Loss per share for the first nine months stood at 1.58 HK cents.
Staff headcount increased to 63 as at 30 September 2011, representing an increase of approximately 19% from the beginning of the year.
Cash and bank balances were approximately 68.6 mln hkd, representing an increase of around 250% over the corresponding period of the previous year.
The board does not recommend the payment of an interim dividend for the period.
Focus Media Network is a well-established digital out-of-home (OOH) media company in Hong Kong and Singapore, with an operating history since April 2004. The group pioneered the concept of creating a sizeable network of flat-panel displays in elevator lobbies of office and commercial buildings to sell advertisement. In terms of the number of networks, Focus Media Network is the largest digital OOH media company that has created a sizeable network in elevator lobbies of office and commercial buildings in Hong Kong and Singapore.
See also:
FOCUS MEDIA: Capturing Captive Audiences In Singapore, Hong Kong
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