AirMedia Group Inc. (Nasdaq: AMCN), the operator of the largest digital media network in China dedicated to air travel advertising, today announced its unaudited financial results for the first quarter of 2008 ended March 31, 2008.
- Total revenues increased 162.4% year-over-year and 32.6% sequentially to US$21.6 million, exceeding company high-end guidance by $600K.
- Revenues from digital frames in airports for the first quarter of 2008 grew 431.0% sequentially to $6.7 million.
- Revenues from digital frames in airports was nil in the same period one year ago; Net income increased 288.7% year-over-year and 18.8% sequentially to $7.3 million.
- Basic and diluted income per ADS was $0.11 and $0.10, respectively.
- Adjusted net income (non-GAAP), which excluded share-based compensation expenses and amortization of acquired intangible assets, increased 337.6% year-over-year and 21.5% sequentially to $8.5 million.
- Adjusted basic and diluted net income per ADS (non-GAAP) was US$0.13 and US$0.12, respectively.
Digital signage accounted for 31.1% of the company's total revenues in the first quarter, which is particularly impressive given that the had only installed/acquired the network (mostly in big airports) about four months prior to the start of the quarter. Of course, the Chinese digital signage market is hot right now, so as Airmedia noted, despite the first quarter normally being the weak one, strong and growing demand for commercial advertising space -- particularly in digital formats -- helped the company buck the trend. The upcoming Olympics will make Airmedia's airport assets particularly valuable, so expect them to hike prices and see a similar spike in revenues probably in Q2, but maybe q3.