Significant Progress in China Distribution Strategy and Operational
Integration
SHANGHAI, China, Nov. 14 /Xinhua-PRNewswire/ -- Xinhua Finance (TSE
Mothers: 9399; OTC: XHFNY), China’s premier financial information and media
service provider, today announced, under International Financial Reporting
Standards (“IFRS”), the consolidated results were revenue of US$125.1
million, EBITDA of US$19.7 million and net income of US$15.8 million for the
nine months ending September 30, 2006, representing increases of 64%, 68% and
227% respectively over the same period last year. Fully diluted earnings-per-
share (EPS) reached US$18.11, up from US$7.38 for the nine months ending
September 30, 2005.
(Logo: http://www.prnasia.com/sa/200611140926.gif )
Under IFRS, proforma results, adjusted to exclude non-cash ESOP expense
and one-time items, were EBITDA of US$24.3 million and net income of US$12.1
million, showing solid growth of 107% and 149% respectively over prior year
levels. Proforma IFRS adjusted EBITDA margin was 19% and net income margin
was 10%, as compared to full year forecasts of 15.4% and 8.3%, respectively.
The non-cash ESOP expense and one-time items are items that were unforeseen
when preparing the Company’s forecasts. The Company believes these proforma
results may be helpful for understanding underlying operating and financial
trends. In order to reflect the full year impact of non-cash ESOP expenses
and one-time items to its 2006 projected net income, the Company has revised
its net income forecast upward to US$18.5 million from US$13.8 million.
Xinhua Finance CEO Fredy Bush commented, “With the continued execution
of our strategy and successful integration of new revenue streams, we have
achieved another period of solid top- and bottom- line growth. Over the past
eight fiscal quarters since our IPO, we have consistently delivered period
after period of stable growth in line with or exceeding our financial
targets. This established track record of strong financial performance
demonstrates our ability to deliver value-added products and services to our
global markets. It is also a testament to management’s focused efforts to
streamline operations and tightly control costs, which has translated
directly into significant gains in our bottom line profit and EPS.”
“I am pleased to report that all service lines are performing well while
we continue our march along our key strategic initiatives. As the China
distribution strategy takes hold and the Distribution service line begins to
stand on its own, we expect to see a further multiplying effect through our
core service lines, as the generation of additional distribution channels
drives greater value from our proprietary products and services. By all
strategic, operational and financial measures, this has been another very
successful quarter for Xinhua Finance.”
During the third quarter, Xinhua Finance further expanded the robustness
of its core product offerings. As of the end of October, $19.4 billion in
exchange-traded funds track the Xinhua FTSE Index Series worldwide. Several
short-term bond ratings were issued during the period, including those for
two leading Chinese pharmaceutical companies. In the period several
significant operational milestones were attained including: Financial News
reported its second-highest month of sales, Investor Relations made further
inroads into the Asian market by signing ongoing advisory agreements with
major Asian clients, and Stone & McCarthy Research Associates opened its
Beijing office.
Xinhua Finance also strengthened the scope and impact of its China
distribution platform. By leveraging its proprietary content, the Company
created a special “Finance” section for distribution in the Beijing Review
and Economic Observer, both of which are prominent media sources in China.
The Company also established an integrated financial advertising and
marketing platform across magazine, newspaper, radio and TV to better serve
its customers and advertisers.
At the same time, the Company remains focused on continuously enhancing
the efficiency of its operations. With such recent initiatives as the
initiation of the Shared Service Center to provide back office financial
processes for multiple Service Lines centrally, Xinhua Finance is maximizing
the value of its growing and synergistic businesses.
First Nine Months 2006 vs. First Nine Months 2005 (IFRS) - unit: USD mil.
1st 9 Mo. 2006 1st 9 Mo. 2005 Change
Revenue 125.1 76.5 64 %
EBITDA 19.7 11.8 68 %
Net Income 15.8 4.8 227 %
NOTE: The 2006 projected net income under IFRS is revised upward to
US$18.5 million from US$13.8 million to reflect the full year
impact of non-cash ESOP expenses and one-time items.
First Nine Month 2006 vs. First Nine Months 2005 (JGAAP) - unit: USD mil.
1st 9 Mo. 2006 1st 9 Mo. 2005 Change
Revenue 125.1 76.5 64 %
EBITDA 20.1 11.6 73 %
Net Income 10.3 -1.0 N/A
NOTE: The 2006 projected net income under JGAAP is revised upward to
US$10.5 million from US$1.1 million to reflect the full year
impact of non-cash ESOP expenses and one-time items.
Notes to Editors
About Xinhua Finance Limited
Xinhua Finance Limited is China’s premier financial information and
media service provider and is listed on the Mothers board of the Tokyo Stock
Exchange (symbol: 9399) (OTC ADR: XHFNY). Bridging China’s financial
markets and the world, Xinhua Finance serves financial institutions,
corporations and re-distributors through four focused and complementary
service lines: Indices, Ratings, Financial News and Investor Relations.
Founded in November 1999, the Company is headquartered in Shanghai with 20
news bureaus and offices in 19 locations across Asia, Australia, North
America and Europe.
For more information, please visit http://www.xinhuafinance.com .
