Clear Media Announces Annual Results 2015

HONG KONG, Feb. 3, 2016 /PRNewswire/ --

Highlights

• Bus shelter advertising revenue, net of value added tax, increased by 4.1% to HK$1,832.7 million
• Depreciation of RMB impacted revenue growth by approximately 2.0%
• EBITDA increased by 11.9% to HK$792.9 million
• EBIT increased by 17.5% to HK$436.0 million
• Net profit increased by 16.8% to HK$280.5 million
• Basic earnings per share increased by 16.0% to HK51.92 cents
• The Directors have proposed payment of a final dividend of HK16 cents per share (2014: HK15 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 annual results for the year ended 31 December 2015.

The Group's total turnover for the year ended 31 December 2015 increased by 4.1% year on year to HK$1,832.7 million. Earnings before interest, tax, depreciation and amortisation ("EBITDA") for the year increased by 11.9% year on year to HK$792.9 million (2014: HK$708.9 million). Earnings before interest and tax ("EBIT") increased by 17.5% to HK$436.0 million (2014: HK$370.9 million). Net profit for the year increased by 16.8% year on year to HK$280.5 million (2014: HK$240.2 million). Basic earnings per share increased by 16.0% year on year to HK51.92 cents (2014: HK44.75 cents). The Directors have proposed payment of a final dividend of HK16 cents per share (2014: HK15 cents).

As of 31 December 2015, Clear Media operated the most extensive standardized bus shelter advertising network in Mainland China, with a total of more than 45,000 panels (2014: 42,000) covering 26 cities. Revenue, net of value added tax, from the bus shelter advertising business increased by 4.1% year on year to HK$1,832.7 million (2014: HK$1,760.7 million). The depreciation of RMB impacted revenue growth by approximately 2.0%. The average selling price before value added tax (the "ASP") decreased modestly by 1.9% during the year. The average number of bus shelter panels increased by 6.9%. The overall occupancy rate decreased slightly to 61.6% (2014: 62.4%).

For the year ended 31 December 2015, 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 2.8% year on year to HK$1,064.7 million (2014: HK$1,035.2 million). Among the three key cities, the revenue performance was led by the operation in Beijing, followed by Shanghai and Guangzhou.

Gross revenue from Beijing increased by 7.1% year on year to HK$507.1 million (2014: HK$473.5 million), mainly driven by a 2.9% increase in the average number of panels and a higher occupancy rate at 75.3% (2014: 72.2%). The ASP decreased marginally by 0.2%.

Gross revenue from Shanghai increased by 1.3% year on year to HK$231.3 million (2014: HK$228.4 million), attributable to a 3.6% increase in the average number of bus shelter panels. The ASP decreased by 1.0% and the occupancy rate decreased to 49.5% (2014: 50.1%)

Gross revenue from Guangzhou decreased by 2.1% year on year to HK$326.2 million (2014: HK$333.3 million), as ASP decreased by 7.7% due to tough price competition. The average number of bus shelter panels increased by 3.8% and the occupancy rate increased to 67.5% (2014: 66.0%).

Gross revenue from all mid-tier cities, where the Group has operations in, increased by 4.5% to HK$862.1 million (2014: HK$825.1 million) during the year. The ASP slightly decreased by 0.9% and the average number of bus shelter panels increased by 9.5%. The occupancy rate during the year dropped slightly to 58.8% (2014: 61.1%).

In December 2015, the Group added 40 new digital advertising panels in Nanjing. Sales generated from the new digital operation amounted to HK$15.0 million in 2015 (2014: HK$5.5 million).

Mr. Han Zi Jing, the 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 both in major cities and new cities to extend the breadth and depth of the reach of our network, taking advantage of the favorable asset price levels. In addition, we continue to test new digital opportunities in new cities."

Mr. Joseph Tcheng, the Chairman of the Group, said: "The operating environment will remain challenging. Our management expects the revenue performance from various industries, that our advertising clients operate in, to be mixed in 2016. Our team will continue to focus on recruiting new customers, control operating costs and test new technologies. Clear Media is optimistic about the prospects of the advertising sector in China on the back of a continuous increase in domestic consumer spending."

Financial Highlights

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/ Christy Chan
Tel:        +852 2136 6182/ 2136 6955/ 3920 7631/ 3920 7678
Fax:       +852 3170 6606
Email:   clearmedia@iprogilvy.com