Just months after restructuring its in-store advertising network and selling its out-of-home digital networks to Sina.com, Chinese digital media group Focus Media Holding Limited has announced its unaudited financial results for the fourth quarter and full year ended December 31, 2008.
Jason Jiang, chairman and CEO of Focus Media stated, "The fourth quarter 2008 was particularly challenging period to Focus Media. During the quarter, we incurred significant non-cash restructuring and impairment charges due to severe adverse changes in macro and micro business environments. However, our core business has held relatively well. Though we saw revenue in fourth quarter declined 15% to USD192 million from USD224.8 million of third quarter 2008, we have significantly improved our account receivable collection and as a result, our account receivable balance has dropped to USD278.8 million as of December 31, 2008 from USD346.3 million as of September 30, 2008."
Focus Media's fourth quarter net revenue was USD192.1 million, declining 15% from USD224.8 million for the third quarter of 2008. Net loss was USD800.3 million or -USD6.22 per fully diluted ADS, compared to net income of USD51.3 million for the third quarter of 2008 or USD0.38 per fully diluted ADS. Continuing operations net revenue was USD87.2 million and net loss from continuing operations was USD422.2 million. Discontinued operations net revenue was USD104.9 million and net loss from discontinued operations was USD378.1 million.
On December 9, 2008, Focus Media announced the restructuring of its CGEN in-store advertising network and the termination of its remaining wireless advertising business. Subsequently, on December 22, 2008, Focus Media announced the sale to Sina Corporation of substantially all of the assets of its out-of-home digital networks, including LCD display networks, poster frame networks and in-store networks. The transaction is subject to customary closing conditions and certain regulatory approvals and is expected to be completed in the first half of 2009.
For the full year of 2008, total company net revenue was USD790.2 million for the full year 2008, as compared to USD506.6 million for the full year 2007. Continuing operations net revenue was USD369.6 million, and net loss from continuing operations was USD414.9 million.
Cash and cash equivalents for Focus Media were USD422.9 million as of December 31, 2008, a 13% increase from USD373.2 million as of September 30, 2008.