Attribution Hua the net loss to media shareholders is USD 7.5 million

China Video Media (NASDAQ:VISN) today released its first-quarter results for fiscal year 2014 as at March 31. According to the report, the total revenue of China's media in the first quarter was 22 million U.S. dollars, up 29.1% from 17.1 million US dollars in the same period last year; the net loss to China as a media shareholder was $7.5 million, and the net loss to the media shareholders at the same time last year was 14.6 million U.S. dollars, which was narrowed by

Major financial and business data for the first quarter of 2014

Gross income was 22 million U.S. dollars in the first quarter of 2014.

Gross loss was $200,000 in the first quarter of 2014.

In the first quarter of 2014, attribution Hua to the media shareholders net loss of 7.5 million U.S. dollars.

Excluding shares paid in the first quarter of 2014, the net loss to China as a media shareholder (non-US GAAP) was 7.2 million dollars.

In the first quarter of 2014, the net loss per share of the United States depository shares was 1.41 U.S. dollars, and every 1 shares of US depository shares represented 20 common shares.

As at March 31, 2014, the balance of cash and cash equivalents for the company was USD 37.1 million. In the first quarter of 2014, the net outflow of cash from the company was $2.7 million.

As of March 31, 2014, the company's mobile digital television channel network covering 19 cities in China (with exclusive media resources and joint ventures of the city), a total of 109,484 screens.

In the first quarter of 2014, the total number of broadcast hours of the company's mobile digital TV network was 37,620 hours.

In the first quarter of 2014, the average advertising revenue for the company was 543 dollars per broadcast hour.

In the first quarter of 2014, the company averaged 7.03 minutes of advertising time per broadcast hour.

"The first quarter of 2014 was a brand new starting point for the Chinese media, and we were delighted to see a strong year-on-year growth in our core advertising business, despite seasonal factors," said Mr Limin, chairman and chief executive officer of the company's board of directors. Our rich and diverse advertising products have been fully recognized by advertisers. The company is expected to have a stronger performance for the remainder of 2014. In addition, as announced earlier, we have reached a constructive reconciliation arrangement with the shareholders of the digital media Group, which will enable management to focus more on the goal of creating maximum value for shareholders. As the first entry point of the mobile Internet in the urban outdoor space, we are making great efforts to build China's largest public transport Wi-Fi network. ”

Mr Yan, China's chief financial officer, added: "While advertisers are still cautious, the growth of China's basic business continues to prove our unique value in the Chinese advertising market." As the core advertising business continues to rise and long-term litigation is reconciled, the company is ready to meet the exciting opportunities that the mobile Internet arena brings. ”

2014 First quarter performance analysis

The total revenue of China's media in the first quarter of 2014 was $22 million, a 29.1% increase from 17.1 million U.S. dollars in the first quarter of 2013. The year-on-year surge in revenue has been fuelled by strong growth in consumer demand for FMCG, E-commerce and online gaming clients.

The first quarter of 2014, the company's mobile digital television network broadcast hours total of 37,620 hours, and the first quarter of 2013 and 2013 fourth quarter of the company's mobile digital TV network broadcast hours total of 39,060 hours and 38,458 hours.

The average advertising revenue for each broadcast hour in the first quarter of 2014 was $543, while the average advertising revenue for each broadcast hour in the first quarter of 2013 and the fourth quarter of 2013 was $772 trillion, respectively.

In the first quarter of 2014, the company sold a total of 264,476 minutes of advertising, while the first quarter of 2013 and the fourth quarter of 2013, the company sold the total advertising broadcast time is 204,829 minutes and 352,418 minutes respectively.

In the first quarter of 2014, the company sold an average of 7.03 minutes of advertising time per broadcast hour, compared to 5.24 minutes and 9.16 minutes for each broadcast hour in the first quarter of 2013 and the fourth quarter of 2013.

In the first quarter of 2014, a total of 314 advertisers bought advertising time directly or through agents to the company, and in the first quarter of 2013 and in the fourth quarter of 2013 respectively, 361 and 462 advertisers bought advertising time directly or through agents.

As the most important component of corporate advertising costs, the media cost in the first quarter of 2014 was $18.5 million, up 3.8% from 17.8 million in the first quarter of 2013, down 6.6% from 19.8 million dollars in the fourth quarter of 2013.

Gross losses were $200,000 in the first quarter of 2014, while gross losses were $5.1 million in the first quarter of 2013, and gross profit of 7.6 million in the fourth quarter of 2013.

In the first quarter of 2014, the gross profit margin was negative 0.9%, while gross profit margin was 30.2% in the first quarter of 2013 and 22% in the fourth quarter of 2013.

Sales and market costs for the first quarter of 2014 were $5.6 million, down 22.6% from 7.2 million in the first quarter of 2013, and 3.9% per 5.4 million in the fourth quarter of 2013. Sales and market fees accounted for 25.6% of the quarterly advertising revenue in the first quarter of 2014, while sales and market fees for the first quarter of 2013 and the fourth quarter of 2013 accounted for 42.4% and 17.2% of the corresponding quarterly advertising revenue.

Management costs for the first quarter of 2014 were $2.2 million, down 1.5% from 2.3 million in the first quarter of 2013, and 9.1% per 2.4 million in the fourth quarter of 2013.

Operating losses in the first quarter of 2014 were $7.1 million trillion, operating losses in the first quarter of 2013 were $14.4 million, while the operating profit for the fourth quarter of 2013 was 500,000 US dollars.

Net interest costs for the first quarter of 2014 were USD 300,000, while net interest costs for the first quarter of 2013 and the fourth quarter of 2013 were $190,000 and $300,000.

In the first quarter of 2014, the company's income tax cost was $30,000, and the company's income tax was $30,000 in the first quarter of 2013, while the company's income tax cost was 200,000 U.S. dollars in the fourth quarter of 2013.

In the first quarter of 2014, the attribution Hua to the media shareholder net loss (measured by the United States General accounting standards) of 7.5 million U.S. dollars, while the first quarter of 2013 Hua as the media shareholder net loss of 14.6 million U.S. dollars, 2013 fourth-quarter Hua as the media shareholder net profit of 100,000 U.S. dollars.

In the first quarter of 2014, the net loss per share of the United States depository shares was USD 1.41 in the United States under general accounting standards.

In the first quarter of 2014, excluding share costs and litigation-related or loss, belong to China as the media shareholder net loss (non-US General accounting Standards Measurement) of 7.2 million U.S. dollars, and the first quarter of 2013 Hua as the media shareholder net loss (non-US General accounting Standards Measurement) for 12.8 million U.S. dollars, In the fourth quarter of 2013, the attribution Hua to the media shareholder net profit (non-US General accounting standard measure) is 400,000 US dollars.

As of March 31, 2014, the company's mobile digital TV network broadcast terminal total of 109,484, and March 31, 2012 the company's mobile digital TV network broadcast terminal total of 107,838, December 31, 2012 the company's mobile digital TV network broadcast terminal total of 111,163.

As of March 31, 2014, the company has a total of 617 employees, and as at March 31, 2012 The total number of employees for 715 people, as at December 31, 2012, the company has 642 employees.

As at March 31, 2014, the balance of cash and cash equivalents held by the company was USD 37.1 million, while the balance of cash and cash equivalents held by December 31, 2012 was USD 38.9 million. In the first quarter of 2014, the net outflow of cash from the company was $2.7 million, while in the fourth quarter of 2013, the company managed cash inflow of $5.8 million.

In the first quarter of 2014, the company's depreciation and amortization costs were USD 1 million and the capital expenditure was $400,000.

The company's recent development

Appointment of Chief strategic officer

China sees the media appoint Mr. Deng Tianlin as the chief strategist of the company and entered into force on June 3, 2014. Mr. Tang will be a key member of the management team to manage the company's mobile internet business. Mr. Deng has more than 20 years of experience in the communications industry and has been a senior executive in the Asia-Pacific or China region in a number of multinational communications companies. Prior to joining the company, Mr. Deng served as General manager for Asia Pacific in Novatel, Canada, managing director of Harris (Harris) Asia Pacific region, and the chief operating officer of the Alcatel Internet business group in Greater China and Maxwell technology company. Mr. Deng also has a number of invention patents in the United States and Canada. Mr. Deng obtained a degree in electrical engineering from Beijing University of Posts and Telecommunications in 1984, and a master's degree in electronic Engineering from Calgary, Canada.

Business outlook

The company expects ad revenue to rise between 30 million to 31.6 million dollars in the second quarter of 2014, up from 12.4% to 18.3% per cent of advertising revenue.

The company's expectations are based on a 1 dollar exchange rate of 6.1145 yuan.

The company suggested that the guidance given is based on the results of the announcement, the company already has the exclusive media resources or joint venture company's business network. If the number of cities covered by a corporate network increases or decreases, management forecasts may change.