Air America Media Appealing Secret
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AirMedia 2010 semi-annual report shows that in the second quarter, the company's total revenue $ 56,300,000, an increase of 53.0%, growth of 15.5%, a net loss of $ 4,700,000, compared with the previous quarter's $ 6,500,000 reduced net loss of 180 million. This is following the route after the first quarter of 2009, the United States for the sixth consecutive quarterly loss.
Why is always accompanied by loss of earnings, is still optimistic about the investment company?
Air Media Review loss history of more than a year, you will find large-scale loss is always accompanied by the pace of expansion.
AirMedia The aim of the expansion of the airport and gas stations.
At the airport, Air America through the purchase of franchise rights (that is, in places such as airport and airline advertising franchise rights) and traditional media content resources, occupation of the airport digital TV, frame, air digital television and other advertising sites. So far, Air China has 50 major U.S. airports and nine franchise route.
Over a quarter, revenue growth in the second quarter of this year, mainly from the airport profitability of traditional media, digital frame, gas stations and other media business, media, revenue growth, a record total revenue of $ 56,300,000 record high net loss gradually less. This shows that China's aviation market continued to boom in the case of Air America's business continued to improve in the third quarter, total revenue is expected to be high.
In addition, the Air Media traditional media, the second quarter of the airport up to $ 12,200,000 revenues, growth of 23.7%, an increase of 115.5%, has begun to achieve profitability.
During the quarter, Air Media Airport Advertising sold traditional media business up to 455 digits, growth of 15.8%, an increase of 45.4%. Data show that price increases for the quarter advertising, airport traditional media business average revenue per sales period of time up to $ 26,903, growth of 6.8%, an increase of 48.1%. Intense competition in the media, the media are in the immediate discounts to attract advertisers, but can AirMedia bidding market trends.
It should be noted that Air America has always been accompanied by a loss of the media staking their claims. Meanwhile, the company must face, along with the expansion of the airport crowd, the continuing rise in the franchise fee issue.
Data show that Air Media 2008 franchise fee expenses $ 45,700,000, in 2009 rose to $ 101,000,000 while, or 141%, fiscal 2009 net loss of $ 30,200,000. In the first quarter of 2010, AirMedia licensing fees in the share of net revenues was 66.9%, Air China still amounted to U.S. licensing fees $ 31,900,000. This is a direct result of loss of Air America in the first quarter $ 6,500,000.
It has been published in 2009 reported a ,2007-2009, Air Media in the investment to spend a huge cash flow, which in 2009 AirMedia investing cash flows of $ 42,644,000, of which the bulk of the assets and equipment used for the purchase, A total of $ 28,702,000, accounting for 67%.
"For all purposes are to seize the market, increase market right to speak." Kwok Man Air Media CEO explained the investment strategy of the expansion of Air America, "expansion can improve the market pricing, which can be seen as short-term gains at the expense of cultivating a strong potential resource tree. "
In fact, the U.S. Air China Air China Media Group owns over 90% of the digital media market share, and the largest share of the airport, the traditional media resources. November 2007, Air Media in the United States, becoming the first Chinese airline NASDAQ Media Group.
The opportunity to compete
Air America is not so much optimistic about the company investment company, rather optimistic about the booming aviation industry.
Data show that several aspects of aviation media attractive very prominent.
Airlines in the media audience, 25-45-year-old audience share of up to 92%, which is also part of the main socio-economic consumers. Meanwhile, passengers becoming more and more younger, more media audience will focus on aviation between the ages of 25-34, which is part of the population of young, energetic, faster to accept new things.
Aviation group, 69% of the share received postgraduate education, as highly educated group, flying for business and high-end multi-purpose travel.
Occupational distribution from the point of view, almost half of Air crowd for business / company management and staff, and secondly, 23% for professional and technical personnel.
Income groups from the air, the personal annual income mainly in the 40000 -16 million a year, and household income are at a high level. Overall, the aviation population is a high-income groups.
Investigation of aviation in the audience, because the airport offers a large variety of entertainment, sports, humor, information and other exciting TV programs and video works fine, air to air new media audience attention time to reach a cumulative 80.67 minutes, 45% people stay in the 1-1.5 hours. Compared to other media, such a length of stay is relatively long, the passenger in a relatively long period of time, you can relatively mild air media content to accept the transmission of information.
One of the features aviation media is media value outstanding. Focus of the audience, the trend is increasingly clear debris, including air media, outdoor media resources, including the increasingly scarce resource, and the effective monopoly of audience time. When this time the monopoly of a certain size, will effectively promote the advertiser's brand building and product marketing.
Meanwhile, Analysys International study also support this point: in 2011 China's aviation media market will reach 6.2 billion yuan, from 2006 to 2011 the average annual compound growth rate of 36.8%. With the economic recovery and the 2010 Guangzhou Asian Games and Shanghai World Expo and other large-scale events held in the next few years, the Chinese aviation market of new media is still more room for growth.
In addition, China's civil aviation system from the news that the Civil Aviation Administration of China will take the following measures to build national air transportation system. Including the strengthening of Beijing, Shanghai and Guangzhou portal composite hub construction; to speed up regional hub in Kunming and other major construction 8; perfect Nanjing, Hangzhou and other 12 to the three major hub airports Link building; speed up the implementation of the regional airport construction projects. Overall, the state will basically formed within 3-5 years in three regions, regional lines, passenger freight, domestic and international transport more coordinated, improved, efficient and convenient national public air transport system, and promote sustainable development of civil aviation.
Civil Aviation Administration air passenger traffic in 2010 is expected to reach 2.7 million passengers. Meanwhile, the related survey, each took the opportunity to see off passengers, pick up an average of 0.59 the number of people. Therefore, people should air the actual arrival of the media traffic of 1.59 times for the airport, which is 376 million people. This is exactly the air of new media the number of people covered.
However, the media waiting for Air America is not the only good news. On the one hand, the aviation industry faces in the history of the most prosperous era, on the other hand, with the Chinese media market, the rapid development of aviation, aviation media, the competition between operators is become intense. This may appear to be, intensified the scramble for resources, resource costs pushed along, but due to the financial crisis, some operators can not be a burden to the high resource costs due to withdraw. |
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By :
Jessie Stone
Submitted
2010-10-10 08:32:11 |
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