8/17/2009 6:23 PM ET
(RTTNews) -
Monday, AirMedia Group Inc. (AMCN: News ), a digital media network operator in China, slipped to a loss in the second quarter, primarily due to incremental concession fees for traditional media concession rights and higher expenses. Revenue for the quarter increased 23.7% from that reported in the the previous year quarter. The company also provided revenue guidance for its third quarter.
The Beijing, China-based company reported a second-quarter net loss attributable to shareholders of US$7.0 million or US$0.11 per ADS, compared to net income of US$7.33 million US$0.11 per ADS in the same quarter a year ago.
On a per share basis, the company reported a net loss for the quarter of US$0.05 per share, compared to net income of US$0.05 per share in the same quarter last year.
On an adjusted basis, net loss for the quarter was US$5.38 million or US$0.08 per ADS, compared to adjusted net income of US$8.52 million or US$0.12 per ADS in the comparable quarter last year. On a per share basis, the company reported adjusted net loss for the quarter of US$0.04, compared to adjusted net income of US$0.06 per share in the previous year quarter.
The company noted that the primary reason for the quarterly loss was the incremental concession fees for traditional media concession rights in Beijing and Shenzhen airports.
On average, six analysts polled by Thomson Reuters expected the company to report a loss of US$0.13 per ADS for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter was US$36.82 million, up 23.7% from US$29.77 million in the same quarter previous year. The year-over-year increase in revenues were due to increases in revenues from digital frames in airports, traditional media in airports and other displays. Analysts expected the company to report revenue of US$36.09 million for the quarter.
Commenting on the results, Herman Guo, chairman and chief executive officer of AirMedia said, "Despite the weak economic environment in the first quarter of 2009 during which time most orders for the second quarter were placed, we still achieved a 23.7% year-over-year."
Gross loss as a percentage of net revenues for was negative 1.3%, compared to gross income as a percentage of net revenues of 38.6% in the previous year quarter. The decrease in gross profit was primarily due to an increase in concession fees.
Loss from operations for the quarter was US$8.41 million, compared to income from operations of US$6.04 million in the comparable quarter prior year.
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