HONG KONG (dpa-AFX) - Advertising company Focus Media Holding Ltd. (FMCN) Monday reported a 69.0 percent surge in profit for the second quarter, aided mainly by a strong growth in LCD network, in-store network and poster frame work segment. The company also gave its earnings outlook for the third quarter.
The China's largest out-of-home lifestyle interactive targeted digital media group earned $42.8 million or $0.30 per American Depositary Share, or ADS, for the quarter. This compares to a profit of $25.3 million or $0.17 per ADS last year.
Excluding items, net income for the quarter was $62.9 million or $0.44 per ADS, compared with $44.0 million or $0.30 per share in the prior year.
Net revenue for the quarter was $179.0 million, an increase from $122.54 million in the year-ago quarter.
By segments, revenue from the LCD display network, in-store network and poster frame network was $166.1 million, a 48.0 percent jump from the prior year. Revenue from the traditional outdoor billboard network was higher by 25.0 percent at $12.9 million, compared with last year.
As of June 30, 2011, the total installed base of LCD displays in the company's LCD display network was 169,798 nationwide, as compared to 170,104 as of March 31, 2011.
The total number of non-digital frames ready to use in its poster frame network was 354,945 as of June 30, 2011, as compared to 342,728 as of March 31, 2011.
Meanwhile, Focus Media said its Vice President of Finance, Ge Xu is resigning, effective August 31, 2011.
Additionally, the company announced an increase in the size of its share repurchase program to $450.0 million and extended the termination date of the repurchase plan to December 31, 2013. As of August 22, 2011, it has spent about $306 million in share repurchases.
Looking ahead to the third quarter, Focus Media expects adjusted net income of $68.0 million to $70.0 million. It forecasts net revenues from core business of $175.0 million to $177.0 million, while for non-core business, it is expected to be between $11.0 million and $13.0 million.
The company is scheduled to hold its annual general meeting of shareholders of 2011 on November 1, 2011.
Copyright RTT News/dpa-AFX