Focus Media Announces 171% Growth in 2007
18 Mar 2008
Focus Media Holding Limited, China's largest digital media group, experienced 171% revenue growth in 2007 - with total revenues hitting $506M (as compared to $211M in 2006). Of the total - $111M came from digital out-of-home (a 75% increase on last year). Net income was $144M compared to $83M in 2006.
The company's 4th quarter results far exceeded expectations - driven by robust growth in their in-elevator poster frame business. The later has benefitted significantly from an ongoing upgrade from static to digital. The company expects to continue this upgrade process in 2008, and plans to spend the majority of next years expected $50M capital expenditure on further digital poster technology.
As of December 31, 2007, the company has over 5000 employees and a total installed base of 112,298 LCD displays and digital frames nationwide. Including 49,452 in-store (with 6000 new installs in Q4 2007) and 10,819 digital poster frames.
They continue to predict significant growth (targeting total revenue of $900M in 2009). According to chairman Jason Jiang, "Based on our dialogs with our large advertising clients, we strongly believe the current growth momentum in the China advertising industry will continue after the 2008 Olympics, driven by increasing domestic consumer demand for goods and services as the Chinese economy continues to expand".
AKA COMMENT
Focus Media is the champion that the digital industry needs. The only sour note in their results came from a comment reltaing to their in-store division, where revenues were down by 17% to $6.5M. Focus blamed this fall on competition, mainly from rival firm CGEN - a company that they conveniently acquired in January 2008 !
Not satisfied with the markets that they are in - in December they also launched the first large-size LED digital outdoor billboard, a 1500 square foot landmark, on a boat navigating roundtrips along the bund area in Shanghai.