omniture

China Digital Media Corporation Reports Third Quarter 2006 Results

China Digital Media Corporation
2006-11-27 18:03 1326

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.

Source: China Digital Media Corporation
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