Chinese Internet Advertising Revenue Up For Focus Media

Chinese digital media firm Focus Media Holding Limited announced its unaudited financial results for the second quarter ended June 30, 2010, and stated total net revenue was USD158.2 million, representing an increase of 27% from USD124.9 million for the first quarter of 2010 and an increase of 22% from USD129.5 million for the second quarter of 2009.

Advertising net revenue from the LCD display network was USD72.5 million for the second quarter of 2010, representing an increase of 44% from USD50.2 million for the first quarter of 2010 and an increase of 34% from USD54.3 million for the second quarter of 2009. Advertising net revenue from the poster frame network was USD25.2 million for the second quarter of 2010, representing a slight increase of 2% from USD24.8 million for the first quarter of 2010 and a slight decrease of 5% from USD26.5 million for the second quarter of 2009.

Advertising net revenue from the in-store network was USD10.9 million for the second quarter of 2010, increasing by 42% from USD7.7 million from the first quarter of 2010 and by 21% from USD9.0 million for the second quarter of 2009.

Internet advertising service net revenue was USD35.7 million in the second quarter of 2010, increasing by 27% from USD28.1 million for the first quarter of 2010 and by 43% from USD25.0 million for the second quarter of 2009. Advertising net revenue from the traditional outdoor billboard network and movie theater was USD13.9 million for the second quarter of 2010, on par with USD14.1 million for the first quarter of 2010 but decreasing by 6% from USD14.8 million for the second quarter of 2009, primarily due to lower seasonal revenue from the movie theater network.

As of June 30, 2010, the total installed base of LCD displays in Focus Media’s LCD display network was 142,305 nationwide, including 137,071 displays through its directly owned networks, and 5,234 displays through regional distributors, as compared to total LCD displays of 132,485 as of March 31, 2010.

GAAP net income attributable to Focus Media was USD25.3 million, compared to net loss attributable to Focus Media of USD1.0 million for the first quarter of 2010, and net loss attributable to Focus Media of USD23.0 million for the second quarter of 2009.