HONG KONG, Nov. 27 /Xinhua-PRNewswire-FirstCall/ -- China Digital Media
Corporation (OTC Bulletin Board: CDGT), a leading provider of cable and
digital television services, advertising services and content in China,
announced quarterly revenue for the nine months ended September 30, 2006.
Financial Highlights for the Nine Months Ended September 30, 2006
Compared to the Nine Months Ended September 30, 2005:
-- Revenues increased 164%% to $12.7 million from $4.8 million
-- Gross profit increased 64% to $4.7 million from $3.2 million
-- Income from operation increased 2.3% to $2.6 million from $2.5 million
-- Net income before tax and minority interest decreased 43% to $2.6
million from $4.6 million
With the expansion of business in media advertising and channel
management, the Company has broadened the revenue base as compared with the
same period of last year. Thanks to the increased revenue, income from
operation increased during the nine months ended September 30, 2006 as
compared to the nine months ended September 30, 2005 although the increase in
depreciation of the Company’s digital set top boxes (attributable to the
further installation of approximately 100,000 digital set top boxes during
the nine months ended September 30, 2006 compared to the same period of 2005)
has eliminated certain gross margin. As a result, the net income before tax
(excluding a one time payment discount of $1.8 million from a set top box
supplier obtained in 2005) maintained at the similar level of the same period
of last year. As compared to the net income for the nine months ended
September 30, 2005 which included the one time payment discount, net income
after tax showed a reduction from last year of $4.6 million to $1.8 million.
"We are progressing as planned; our core operations in DTV operations and
advertising agency business has generated substantial growth for the Company
compared to the same period of last year," said Daniel Ng, Chairman and CEO
of China Digital Media Corporation. "We are delighted we have just completed
a new round of financing with the support of institutional and high net worth
investors which we believe will allow the Company to develop further and
faster. The Company’s management could, in addition, focus on developing
new business opportunities and believe that this will drive the Company to
grow and expand.”
For more information on the Company, please visit the Company’s website
at http://www.chinadigimedia.com .
To be added to China Digital Media’s investor e-mail list, please send
e-mail to our Investors Relations at ir@chinadigimedia.com.
About China Digital Media Corporation
China Digital Media Corporation focuses its business in three main areas:
Cable TV Operations, Programs Production and Advertising Sales. Arcotect
(GZ) Limited, a wholly owned subsidiary of CDGT in China, is the sole
contractor and operator of digital television services in Nanhai, a city with
410,000 cable TV subscribers. As of today, Nanhai’s cable television
operation provides 148 television channels which comprises of 48 basic
channels and 100 pay channels. The pay channels are categorized into various
value added packages.
Certain information contained in these materials is "forward-looking"
information, such as projections, estimates, pro formas, or statements of
intentions, expectations or plans. Forward-looking information in this
release includes, without limitation, the future success of the Company’s
advertising business and of the Company’s joint ventures, the Company’s
ability to grow and generate new sources of revenues from its IP STB in the
future, its ability to keep its IP STB technologically current, and it
ability to develop new business opportunities. All forward-looking
information is subject to known and unknown risks and uncertainties, many of
which are outside of the control of the company. Consequently, actual
results may, and probably will, differ materially from the results
contemplated in such forward-looking information.