Focus Media Holding Ltd. (FMCN), a multi-platform digital media company, reported Friday a loss for the second quarter, reflecting hefty impairment charges and a 23% drop in revenues. The company also provided revenue guidance for the third quarter.
For the second quarter, net loss attributable to Focus Media was $22.97 million or $0.18 per American Depository shares or ADS, compared to net income of $36.13 million or $0.28 per ADS in the previous year.
On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per share in the second quarter. Analysts' estimate typically exclude special items.
Focus Media said that net loss from continuing operations widened to $44.47 million from $2.28 million in the corresponding quarter last year. The results of the latest quarter included impairment charges of goodwill and other long-lived assets of $32.44 million and share-based compensation of $8.04 million among other charges. The prior-year results included share-based compensation of $3.87 million.
Excluding items, net income from continuing operations slid to $2.83 million from $7.73 million in the year-ago period.
Net income from discontinued operations declined to $21.51 from $33.85 million. Last December, the company announced that it would sell all of its digital out-of-home advertising networks assets to SINA Corp. Focus Media considered these lines of business as discontinued operations while reporting the results of 2009 second quarter.
Non-GAAP net income from discontinued operations was $25.4 million, compared to non-GAAP net loss of $23.1 million for the second quarter of the past year.
Net Revenue from continuing operations for the period dropped 23% to $82.13 million from $107.24 million. Five analysts were expecting revenue of $152.60 million in the second quarter.
Advertising revenue from the movie theater and outdoor traditional billboard network came down 26% to $14.8 million from $20 million, while Internet advertising service revenue slid 12% to $66.7 million from $76.1 million for the year-ago quarter.
Looking ahead to the third quarter, Focus Media expects net revenues from continuing operations to range from $46 million to $47 million. Analysts expect the company to report revenues of $169.55 million for the quarter.
FMCN is currently trading at $10.02, down $0.04 or 0.40%, on the NASDAQ.
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