China sees the media as the first quarter of the loss of the electricity business Shuffle advertising reduction

Yesterday morning, the Chinese media released the first quarter of 2012 financial report. Data show that last year, the four quarter to achieve profit-making earnings of the Chinese media again plunged into a loss morass, the first quarter of the company's net loss of 21.1 million U.S. dollars, the year-on-year increase of 62.3%.

Electronic Business shuffle to reduce advertising

Earnings data showed that in the first quarter of 2012, the company achieved operating income of 28.3 million U.S. dollars, down 13.1%, attributable to China as the media shareholder net loss of 21.1 million U.S. dollars, compared with the same period last year 13 million U.S. dollar growth 62.3%.

In this regard, Limin, chairman and chief executive officer of the Media board, said that the main reason for the negative impact of the performance of the first quarter of the Internet companies due to the lack of funds to reduce the amount of advertising input. At the same time, in the fourth quarter of 2011, the company raised the advertising price, making some small and medium-sized customers start to see the media on the sidelines.

In the fourth quarter of 2011, the Chinese media had achieved a net profit of USD 1.7 million to achieve its first turn of losses since the fourth quarter of 2009, while reducing the annual net loss by 92% per cent year-on-year.

Company management revealed that the first quarter of the advertising revenue drop mainly in the pharmaceutical and electrical, group buying industry.

The study published by the Analysys think-tank said that China saw the first quarter of the media decline, and the electricity market shuffle brought about by the reduction of advertising is not unrelated, the electric commercial major advertisers were affected by the large-scale promotional activities at the end of 2011, the investment in the first quarter also slowed.

Number of screens and long slide in advertising

According to the data, the total number of mobile digital TV screens in China's 20 cities has slipped, as of March 31, 2012, with a total screen of 135762, and a total of 137423 screens up to the end of 2011.

At the same time, the Chinese media advertising broadcast time and income also showed a month-on-month decline, in the fourth quarter of 2011, the Chinese media hourly advertising broadcast time reached 8.95 minutes, advertising revenue per hour 1217 dollars. In the first quarter of 2012, the two figures fell to 6.31 minutes and 679 dollars respectively, with advertising revenue falling by 45% per cent on a month-on-month basis.

Some analysts said that China sees media management or under pressure. Last November, a letter from shareholders asked the board to find another candidate to replace Limin as chairman of the Chinese media.

Looking forward to the Olympic "rescue" performance

For the first quarter of the market shrinkage, the Chinese media focus on the upcoming July 2012 Olympic Games in London, hoping that the London Olympics will allow companies to attract more advertising in the second half of the year, and to drive the company's performance rebound.

Limin, chief executive of China's media, said that according to statistics, during the Beijing Olympic Games, 24.9% of Beijing residents to watch the Olympic Games live through public transport mobile TV.

Although the Olympic Games are not held in China this year, the Chinese media still look forward to being the focus of outdoor attention during the Olympic Games and benefiting from the business opportunities brought by mobile TV.