Clear Media Announces 2019 Interim Results

HONG KONG, Aug. 15, 2019 /PRNewswire/ -- Clear Media Limited ("Clear Media" or the "Company", together with its subsidiaries, the "Group"; SEHK Stock Code: 100), the largest bus shelter advertising panel operator in China, is pleased to announce its interim results for the six months ended 30 June 2019.

During the period, the Group's total turnover decreased by 13.4% to RMB742.2 million due to challenging operating environment. Earnings before interest, tax, depreciation and amortisation ("EBITDA") increased by 27.8% to RMB396.1 million due to the effect of adoption of HKFRS 16. Excluding the effect of the adoption of HKFRS 16, EBITDA would have decreased by 54.9% to RMB139.6 million.

Net loss^[1] was RMB58.2 million as compared to the net profit^[1] of RMB76.2 million in the same period last year. Excluding the effect of adoption of HKFRS 16, net loss would have decreased to RMB41.4 million which was mainly due to the decrease in revenue. Basic loss per share was RMB10.76 cents (1H2018: basic earnings per share of RMB14.09 cents).

As of 30 June 2019, Clear Media operated the most extensive, standardised bus shelter advertising network in Mainland China, with a total of more than 54,000 panels (as of 30 June 2018: 54,000 panels) covering 24 cities. The Company's bus shelter advertising revenue, net of value added tax, decreased by 13.5% year on year to RMB738.0 million.

The average number of bus shelter panels increased by 3.0%. Yield per bus shelter before value added tax ("yield") decreased by 16.0% year on year. The decrease was mainly caused by the decline in overall occupancy rate.

For the six months ended 30 June 2019, the revenue from the top three cities Shanghai, Guangzhou and Beijing decreased by 17.4% to RMB451.9 million (1H2018: RMB547.0 million), driven by a lower average occupancy rate of bus shelter panels 43.5% (1H2018: 61.9%). The revenue from all mid-tier cities also decreased by 7.5% to RMB330.4 million (1H2018: RMB357.1 million).

As of 30 June 2019, the Company operated a total of 247 digital panels in Nanjing (as of 30 June 2018: 251). Total sales generated from the digital panel advertising operation, net of value added tax, amounted to RMB4.2 million (1H2018: RMB4.3 million).

Mr. Han Zi Jing, Chief Executive Officer of the Group, said, "Management expects the operating environment for the second half of 2019 to remain challenging as uncertainties continue in the external environment and the overall China economy. The majority of key customers from the e-commerce and IT industries are expected to remain cautious with their spending."

Mr. Joseph Tcheng, Chairman of the Group, said, "The Group is intensifying its efforts to broaden the customer base, realign the sales organisation to improve effectiveness and implement cost savings initiatives. Despite the above strategies, if the revenue trend of the first half of 2019 continues into the second half of 2019, the Group expects to record a net loss for the full year of 2019."

About Clear Media Limited

Clear Media is the largest bus shelter advertising panel operator in China, with leading market position in top-tier cities, and also a broad presence in the fastest growing cities across the country. We provide one-stop solutions for countrywide advertising campaigns for our customers. Listed on the Main Board of The Stock Exchange of Hong Kong since 2002 under the stock code 100, Clear Media's largest shareholder is Clear Channel Outdoor (NYSE: CCO), one of the world's largest outdoor media companies.

For more information on Clear Media, please visit: www.clear-media.net.

SOURCE Clear Media Limited

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