We would like to highlight Xinhua Finance Media Limited (NASDAQ: XFML). The company is a diversified media company in China. It has developed an integrated platform that includes the creation and production of content that is distributed across nationwide television and print media outlets, and radio in Beijing and Shanghai, and where advertising sales are supported by its own advertising agency.
In the company’s news yesterday,
Xinhua Finance Media Limited (XFML) announced Q2 2008 financial results after the close of the regular trading session. Revenues rose to $48.9 million, an increase of 69% year over year from $29.0 million. Adjusted net income (non-GAAP) was $7.6 million, or 10 cents per ADS, an increase of 22% from $6.3 million, or 8 cents per ADS, for the same period in fiscal 2007. This represents a sequential increase of 437% from $1.4 million adjusted net income in the first quarter of 2008. Four analysts surveyed expected consensus adjusted net income of 7 cents per ADS on $49.3 million in revenues.
“Despite a challenging operating environment for the quarter, we are proud to announce adjusted EPS expectations above our Q2 guidance,” said Ms. Fredy Bush, XFMedia’s Chief Executive Officer. “The Broadcast Group continues to deliver high margins, and we intend to further invest and expand the television business with a particular focus on sports. We believe this will be a significant driving force to our business over the next several years. We expect our future growth to be driven by the expansion of our media assets and distribution channels, and the integration and coordination of such efforts across our operating groups. Our television viewer demographics are very strong and combined with our existing core competence, XFMedia today is able to penetrate a significant group of households in China, providing us with a strategic entry point to build on our advertising revenue” Ms. Bush said.
XFMedia estimates third quarter revenues will range from $52 - $54 million. The company expects to earn $0.11 - $0.12 in adjusted net income per ADS in Q3. Analysts currently anticipate adjusted net income of $0.09 per ADS on $54.3 million in revenues. Based on the strength of its second quarter results, the company raised full-year 2008 revenue guidance to a range of $198 - $208 million, from prior guidance of $195 - $205 million. Adjusted net income per ADS for the full year is now expected to be within a range of $0.33 - $0.35, compared to earlier estimates of $0.31 - $0.33. Analysts expect full year adjusted net income of $0.29 per ADS on $199 million in revenues.
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