omniture

Clear Media Announces Interim Results For the Six Months Ended 30 June 2016

Moderate Growth in Revenue and Net Profit
2016-08-09 21:33 1854

HONG KONG, Aug. 9, 2016 /PRNewswire/ --

Highlights

  • Bus shelter advertising revenue, net of value added tax, increased by 3.9% to HK$889.6 million. The depreciation of the RMB reduced revenue growth by approximately 5.2%
  • EBITDA increased by 3.9% to HK$356.7 million. The depreciation of the RMB reduced EBITDA growth by approximately 5.2%
  • EBIT increased by 2.0% to HK$169.1 million. The depreciation of the RMB reduced EBIT growth by approximately 5.3%
  • Net profit increased by 7.0% to HK$108.0 million. The depreciation of the RMB reduced net profit growth by approximately 5.6%
  • Basic earnings per share increased by 6.5% to HK19.95 cents
  • The Directors have proposed payment of a special dividend of HK37 cents per share (1H2015: Nil)

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 2016.

The Group's total turnover for the six months ended 30 June 2016 increased by 3.9% year on year to HK$889.6 million. The depreciation of the RMB reduced revenue growth by approximately 5.2%. Earnings before interest, tax, depreciation and amortisation ("EBITDA") for the period increased by 3.9% year on year to HK$356.7 million (1H2015: HK$343.4 million). The depreciation of the RMB reduced EBITDA growth by approximately 5.2%.Earnings before interest and tax ("EBIT") increased by 2.0% to HK$169.1 million (1H2015: HK$165.9 million). The depreciation of the RMB reduced EBIT growth by approximately 5.3%. Net profit for the period increased by 7.0% year on year to HK$108.0 million (1H2015: HK$100.9 million). The depreciation of the RMB reduced net profit growth by approximately 5.6%. Basic earnings per share for the first half of 2016 increased by 6.5% year on year to HK19.95 cents (1H2015: HK18.73 cents). The Directors have proposed payment of a special dividend of HK37 cents per share (1H2015: Nil).

As of 30 June 2016, Clear Media operated the most extensive standardized bus shelter advertising network in Mainland China, with a total of more than 47,000 panels (1H2015: 44,000) covering 26 cities. Revenue, net of value added tax, from the bus shelter advertising business increased by 3.9% year on year to HK$889.6 million (1H2015: HK$855.8 million). The depreciation of RMB reduced revenue growth by approximately 5.2%. The average selling price before value added tax (the "ASP") decreased modestly by 6.6% year on year during the first half of 2016 due to incentives offered to retain customers' spending with the Group. The average number of bus shelter panels increased by 7.6% year on year. The overall occupancy rate increased to 61.3% (1H2015: 59.2%).

For the six months ended 30 June 2016, revenue before value added tax ("gross revenue") from the Group's bus shelter advertising operations in the key cities of Guangzhou, Shanghai and Beijing increased by 10.7% year on year to HK$542.1 million (1H2015: HK$489.7 million). Among the three key cities, the revenue performance was led by the operation in Shanghai, followed by Beijing and then Guangzhou.

Gross revenue from Shanghai increased by 28.9% year on year to HK$134.5 million (1H2015: HK$104.3 million), attributable to a 9.5% increase in the average number of bus shelter panels and a higher occupancy rate at 58.1% (1H2015: 45.3%). The ASP decreased by 8.1%.

Gross revenue from Beijing increased by 10.5% year on year to HK$248.8 million (1H2015: HK$225.1 million), mainly due to a 2.5% increase in the average number of bus shelter panels and a higher occupancy rate at 74.4% (1H2015: 66.2%). The ASP decreased by 4.0%.

Gross revenue from Guangzhou slightly decreased by 0.9% year on year to HK$158.9 million (1H2015: HK$160.4 million), attributable to a 5.5% decrease in ASP and a decrease in occupancy rate to 60.1% (1H2015: 64.5%). The average number of bus shelter panels increased by 12.6%.

Gross revenue from all mid-tier cities, where the Group has operations in, decreased by 4.0% to HK$393.8 million (1H2015: HK$410.0 million) for the six months ended 30 June 2016, mainly due to a 10.1% decrease in ASP and a decrease in occupancy rate to 58.4% (1H2015: 58.9%). The average number of bus shelter panels increased by 7.7%.

As of 30 June 2016, the Group operated a total of 257 digital advertising panels in Nanjing (1H2015: 209). Sales generated from the new digital operation amounted to HK$6.7 million for the six months ended 30 June 2016 (1H2015: HK$7.0 million).

Mr. Han Zi Jing, Chief Executive Officer of the Group, said: "We expect to maintain our capital expenditure budget for 2016 at a similar scale to 2015 as we continue to identify acquisition opportunities in major cities and new cities to extend the breadth and depth of the reach of our networks, capitalizing on the favorable asset price levels."

Mr. Joseph Tcheng, Chairman of the Group, said: "The operating environment is expected to remain challenging in the second half of 2016. Our management expects revenue performance from customers in different industries to be mixed. In the long run, Clear Media maintains its optimistic stance towards prospects of the out-of-home advertising sector in China on the back of the country's persisting growth in consumer spending and continuing urbanization

Financial Highlights

Income statement highlights for the six months ended 30 June 2016

(HK$'000)

2016

(Unaudited)

2015

(Unaudited)

% Change

Turnover

889,568

855,794

+3.9%

EBITDA

356,708

343,356

+3.9%

Net profit

108,044

100,929

+7.0%

Basic EPS (HK cents)

19.95

18.73

+6.5%

Special DPS (HK cents)

37

Nil

N/A

Balance sheet highlights

(HK$'000)

30 June 2016

(Unaudited)

31 December 2015

(Audited)

Cash and cash equivalents

622,088

689,322

Net assets

2,745,688

2,802,442

About Clear Media Limited

Clear Media is the largest bus shelter advertising panel operator in China, with leading market shares of more than 60% 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.

For further information:

Clear Media Limited
Mr. Jeffrey Yip
Director of Investor Relations, Company Secretary 
Tel:       +852-2235 3977
Fax:      +852-2235 3911
Email:   jeffrey.yip@clear-media.net

iPR Ogilvy & Mather
Natalie Tam/ Peter Chan / Clara Liu / Jenny Leung
Tel:      +852-2136 6182/ 2136 6955/ 3920 7631/ 3920 7678
Fax:     +852-3170 6606
Email:   clearmedia@iprogilvy.com




Source: Clear Media Limited
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