Chinese digital media company Focus Media Holding Limited stated its net loss from continuing operations was USD44.5 million as the company announced its unaudited financial results for the second quarter ended June 30, 2009.
Net revenue for continuing operations was USD82.1 million, increasing 23% from USD66.7 million for the first quarter of 2009 but declining 23% from USD107.2 million for the second quarter of 2008. Net revenue for discontinued operations was USD89.2 million, a sequential increase of 39% from USD64.4 million for the first quarter of 2009 but a decline of 15% from USD104.5 million for the second quarter of 2008.
What is the difference between continuing and discontinued operations for Focus Media? On December 22, 2008, Focus Media announced that it entered into a definitive agreement with Sina Corporation, owner of Chinese Internet portal Sina.com, to sell substantially all of the assets of Focus Media's digital out-of-home advertising networks, including the LCD display network, poster frame network and certain in-store networks. As a result of the ongoing transaction, these lines of business have been accounted for as discontinued operations.
Net loss from continuing operations was USD44.5 million, compared to net loss from continuing operations of USD17.7 million for the first quarter of 2009 and net loss from continuing operations of USD2.3 million for the second quarter of 2008.
Cash and cash equivalents for continuing operations were USD96.2 million as of June 30, 2009, a 27% decline from USD131.9 million as of March 31, 2009. Cash and cash equivalents for discontinued operations were USD271.7 million as of June 30, 2009, nearly the same as the balance as of March 31, 2009.
Accounts receivable for Focus Media's continuing operations were USD121.5 million as of June 30, 2009, a slight increase of 3.6% from USD117.3 million as of March 31, 2009. Accounts receivable for discontinued operations were USD128.3 million as of June 30, 2009, a slight increase of 5% from USD122.1 million as of March 31, 2009.
For continuing operations, advertising revenue from the movie theater and outdoor traditional billboard network was USD14.8 million in the second quarter of 2009, representing a decrease of 23% from USD19.2 million for the first quarter of 2009 and a 26% decrease from USD20.0 million for the second quarter of 2008. Internet advertising service revenue was USD66.7 million in the second quarter of 2009, a 42% increase from USD47.1 million for the first quarter of 2009 and a decline of 12% from USD76.1 million for the second quarter of 2008.
