Clear Media Announces Interim Results for the Six Months Ended 30 June 2015

HONG KONG, Aug. 11, 2015 /PRNewswire/ -- 

Highlights

• Bus shelter advertising revenue, net of value added tax, increased by 4.5% to HK$855.8 million
• EBITDA increased by 8.9% to HK$343.4 million
• EBIT increased by 9.7% to HK$165.9 million
• Net profit increased by 11.3% to HK$100.9 million
• Basic earnings per share increased by 10.8% to HK18.73 cents

Clear Media Limited ("Clear Media" or the "Company", together with its subsidiaries, the "Group"; SEHK Stock Code: 100), the largest bus shelter advertising panel operator in China, is pleased to announce its interim results for the six months ended 30 June 2015.

The Group's total turnover for the six months ended 30 June 2015 increased by 4.5% year on year to HK$855.8 million. Earnings before interest, tax, depreciation and amortisation ("EBITDA") for the period increased by 8.9% year on year to HK$343.4 million (1H2014: HK$315.4 million). Earnings before interest and tax ("EBIT") increased by 9.7% to HK$165.9 million (1H2014: HK$151.1 million). Net profit for the period increased by 11.3% year on year to HK$100.9 million (1H2014: HK$90.6 million). Basic earnings per share for the first half of 2015 increased by 10.8% year on year to HK18.73 cents (1H2014: HK16.90 cents).

As of 30 June 2015, Clear Media operates the most extensive standardized bus shelter advertising network in Mainland China, with a total of more than 44,000 panels (1H2014: 41,000) covering 27 cities. Revenue, net of value added tax, from the bus shelter advertising business increased by 4.5% year on year to HK$855.8 million (1H2014: HK$819.2 million), on the back of mild economic growth in China. The average selling price before value added tax (the "ASP") decreased by 3.1% during the first half of 2015. The average number of bus shelter panels increased by 7.4%. The overall occupancy rate decreased marginally to 59.2% (1H2014: 59.5%).

For the six months ended 30 June 2015, revenue before value added tax ("gross revenue") from the Group's bus shelter advertising operations in the key cities of Beijing, Guangzhou and Shanghai increased by 0.6% year on year to HK$489.7 million (1H2014: HK$486.8 million). Among the three key cities, the revenue performance was led by the operation in Beijing, followed by Guangzhou and Shanghai.

Gross revenue from Beijing increased by 3.3% year on year to HK$225.1 million (1H2014: HK$217.9 million) for the first half of 2015, mainly due to a 3.5% increase in the average number of panels. The ASP slightly decreased by 0.7% and the occupancy rate increased to 66.2% (1H2014: 65.9%).

Gross revenue from Guangzhou increased by 2.1% year on year to HK$160.4 million (1H2014: HK$157.1 million). Although the ASP decreased by 11.0%, there was a 3.5% increase in the average number of panels and an increase in occupancy rate to 64.5% (1H2014: 58.2%).

Gross revenue from Shanghai dropped by 6.7% year on year to HK$104.3 million (1H2014: HK$111.8 million), attributable to a 3.6% decrease in the ASP and the decrease in occupancy rate to 45.3% (1H2014: 50.3%). The average number of bus shelter panels increased by 7.6%.

Gross revenue from all mid-tier cities, where the Group has operations in, increased by 7.5% to HK$410.0 million (1H2014: HK$381.4 million) for the six months ended 30 June 2015. The ASP slightly decreased by 0.6% and the average number of bus shelter panels increased by 9.5%. The occupancy rate during the period dropped slightly to 58.9% (1H2014: 59.6%).

Since the second half of 2014, the Group has added 209 digital advertising panels in Nanjing. Sales generated from the new digital operation amounted to HK$7.0 million for the six months ended 30 June 2015.

Mr. Han Zi Jing, the Chief Executive Officer of the Group, said: "We are expecting asset prices continue to be at the most attractive level in years and will continue to take advantage of these market conditions while they persist. We have also gained valuable market knowledge by operating our digital panels in Nanjing and are exploring opportunities to broaden our digital offering for the remainder of the year."

Mr. Mark Thewlis, the Executive Chairman of the Group, said: "Our management does not expect a significant change in the operating environment for the remainder of 2015. General market uncertainty is likely to keep trading conditions tight with pressure on pricing. However, we believe the strength and depth of our sales teams and our unrivaled display networks will continue to drive revenue growth in the second half of the year."

Financial Highlights

Income statement highlights for the six months ended 30 June 2015

Balance sheet highlights

About Clear Media Limited

Clear Media is the largest bus shelter advertising panel operator in China, with leading market shares from 60% to more than 90% in top-tier cities, and also a broad presence in the fastest growing cities across the country. We provide one-stop solutions for countrywide advertising campaigns for our customers. Listed on the Main Board of The Stock Exchange of Hong Kong since 2002 under the stock code 100, Clear Media's largest shareholder is Clear Channel Outdoor (NYSE: CCO), one of the world's largest outdoor media companies.

For more information on Clear Media, please visit: www.clear-media.net.

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