AirMedia Group Inc., the operator of the largest digital media network in China dedicated to air travel advertising, today announced its unaudited financial results for the second quarter ended June 30, 2008.
- Total revenues increased 251.6% year-over-year and 37.9% sequentially
to US$29.8 million;
- Revenues from digital frames in airports for the second quarter of 2008 grew 63.4% sequentially to US$11.0 million. Revenues from digital frames in airports was nil in the same period one year ago;
- Net income increased 241.8% year-over-year and 0.7% sequentially to US$7.3 million. Basic and diluted income per ADS was both US$0.11;
- Adjusted net income (non-GAAP), which excluded share-based compensation expenses and amortization of acquired intangible assets, increased 286.1% year-over-year and 0.6% sequentially to US$8.5 million. Adjusted basic and diluted net income per ADS (non-GAAP) was US$0.13 and US$0.12, respectively.
If there was a point in time where this company would be poised for maximum profitability, this would be it. With such a heavy focus on travel and tourism in the period leading up to the Olympic games (going on right now), China's airports have been busier than ever, and hosting a far greater number of wealthy visitors than normal. So it comes as no surprise that AirMedia, who were already executing extremely well this time last year, are growing revenues and profits at a rate that would make most companies green with envy.
While it's possible that the firm could see a slight dip in Q3 after the fanfare is over, China's airports are overtaxed, and will only get worse as more people find the financial means to travel inside the big country. Combined with a higher savings rate and more expendable income than ever, it would seem that AirMedia's chosen digital signage real estate should produce valuable returns over the long haul.