(RTTNews) - Tuesday, air travel advertising company AirMedia Group Inc. (AMCN: News ), said that it slipped to a loss in the third quarter, as higher expenses ate into a 11.9% top-line growth for the period. Looking ahead, the company expects its fourth quarter revenues to come in ahead of last year.

AirMedia announced a third-quarter net loss attributable to shareholders of US$9.57 million, compared to a profit of US$7.46 million a year-ago. Net loss per American Depository Shares or ADS was US$0.15, compared with a profit of US$0.11 per ADS in the same period one-year ago.

Excluding amortization and share-based compensation charges, adjusted net loss was US$7.0 million or US$0.11 per ADS, compared with a profit of US$8.9 million or US$0.13 per ADS last year, in-line with Wall Street expectations. Analysts' estimates typically exclude special items.

The company reported an operating loss of US$11.27 million, compared to operating income of US$6.14 million last year. Adjusted operating margin was a negative 23.4% for the quarter.

Total revenues for the Beijing, China- based company climbed 11.9% in the July-September period to US$37.7 million from US$33.7 million last year. However, analysts polled by Thomson Reuters were looking at revenues of US$38.28 million for the quarter.

Revenues from Digital frames in airports grew 68.7% to US$17.06 million, on increased number of time slots sold, partially offset by a decrease in the average advertising revenue per time slot sold or ASP.
Traditional media in airports jumped 270% higher to US$7.3 million from US$1.98 million last year, due primarily to the commencement of operations in Beijing and Shenzhen airports from April 2009 and in Wenzhou Yongqiang Airport from November 2008, according to the company.

Despite higher revenues, an 84% year-over-year increase in direct expenses on concession fees from business expansions, pushed the media company to gross loss of US$0.63 million, against a gross profit of US$11.84 million last year.

Operating expenses almost doubled year-on-year to US$10.64 million from US$5.7 million last year.

Looking forward to the fourth quarter, AirMedia expects total revenues between US$44.0 million and US$46.0 million, representing a year-over-year increase of 8.7% to 13.7% from the same period in 2008. Five analysts currently have a consensus revenue estimate of $45.56 million for the quarter.

AMCN finished Tuesday's regular trading sessions up US$0.03 or 0.42%, at US$7.23 on the Nasdaq.

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by RTT Staff Writer

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