AirMedia Obtains Concession Rights in Beijing and Shenzhen Airports
March 13 2009 - 8:40AM
PR Newswire (US)
Company penetrates into traditional media and strengthens
leadership in digital media advertising BEIJING, March 13
/PRNewswire-Asia-FirstCall/ -- AirMedia Group Inc. (NASDAQ:AMCN),
operator of the largest digital media network in China dedicated to
air travel advertising, today announced that it recently obtained
the contractual concession rights to operate various traditional
advertising media in Beijing Capital International Airport and
Shenzhen International Airport and digital frames in the baggage
claim areas in Beijing Capital International Airport. In addition,
AirMedia also renewed its concession rights contract for digital TV
screens in Shenzhen International Airport. AirMedia entered into a
concession rights contract with Beijing Capital International
Airport to operate traditional advertising formats including
billboards, light boxes and other formats in 376 locations at
Terminals 1, 2, and 3 of Beijing Capital International Airport from
April 1, 2009 to March 31, 2012. AirMedia will start operating most
of these 376 locations on April 1, 2009. In the same contract,
AirMedia also obtains concession rights to operate digital frames
in the baggage claim areas in all of the three Terminals from April
1, 2009 to March 31, 2012. Previously, AirMedia only operated
digital frames in the departure areas of Terminals 2 and 3. The
newly obtained concession rights will significantly enhance
AirMedia's digital frame presence in the arrival areas to meet
advertisers' strong demands for advertisements in Beijing Capital
International Airport. AirMedia also entered into a concession
rights contract with Shenzhen International Airport to operate 90
light boxes in the arrival walkways of Terminals A and B of
Shenzhen International Airport from April 1, 2009 to December 31,
2011. AirMedia will start operating the light boxes in most of
these 90 locations on April 1, 2009. 'We are excited about the
signing of these contracts as we expected in our fourth quarter
2008 earnings release. These contracts also opened a new era for
AirMedia to become a one-stop operator of both digital and
traditional media in the air travel advertising sector with a
leading market share. We believe we are now better positioned to
broaden and integrate our customer base, strengthen our pricing
power and further enhance our relationships with airports and
airlines,' commented Herman Guo, chairman and chief executive
officer of AirMedia. In a separate concession rights contract with
Shenzhen International Airport, AirMedia also renewed its
concession rights contract to continue operating digital TV screens
in Shenzhen International Airport from January 1, 2009 to December
31, 2011. Taking into account the above new concession rights
contracts and some other concession rights contracts expected to be
entered into, AirMedia currently expects that total concession fees
for all the product lines in the second quarter of 2009 will be at
least US$30.3 million. About AirMedia Group Inc. AirMedia Group
Inc. (NASDAQ:AMCN) operates the largest digital media network in
China dedicated to air travel advertising. AirMedia has contractual
concession rights to operate digital TV screens in 53 airports,
including all of the 30 largest airports in China. AirMedia also
has contractual concession rights to operate TV-attached digital
frames ranging from 46 to 52 inches and stand-alone digital frames
ranging from 63 to 82 inches in 22 major airports. In addition,
AirMedia has contractual concession rights to place its programs on
the routes operated by 10 airlines, including the three largest
airlines in China, and the exclusive rights in mainland China to
sell advertisements on Cathay Pacific Airline and Dragonair's
routes. In select major airports, AirMedia also operates
traditional media platforms, such as billboards, light boxes, and
mega display screens. For more information about AirMedia, please
visit http://www.airmedia.net.cn/ . Safe Harbor Statement This
announcement contains forward-looking statements. These statements
are made under the 'safe harbor' provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as 'will,'
'expect,' 'anticipate,' 'future,' 'intend,' 'plan,' 'believe,'
'estimate,' 'confident' and similar statements. Among other things,
the quotations from management in this announcement, as well as
AirMedia Group Inc.'s strategic and operational plans, contain
forward-looking statements. AirMedia may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission on Forms 20-F and 6-K, etc., in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about AirMedia's beliefs and
expectations, are forward-looking statements. Forward- looking
statements involve inherent risks and uncertainties. A number of
important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Potential
risks and uncertainties include, but are not limited to, if
advertisers or the viewing public do not accept, or lose interest
in, our air travel digital media network, we may be unable to
generate sufficient cash flow from our operating activities and our
prospects and results of operations could be negatively affected;
we derive substantially all of our revenues from the provision of
air travel advertising services, and if there is a downturn in the
air travel advertising industry, we may not be able to diversify
our revenue sources; if our customers reduce their advertising
spending due to an economic downturn in China and/or elsewhere or
for any other reason, our revenues and results of operations may be
materially and adversely affected; if we are unable to retain
existing concession rights contracts or obtain new concession
rights contracts on commercially advantageous terms that allow us
to place or operate the digital TV screens in airports or on
airplanes, we may be unable to maintain or expand our network
coverage and our business and prospects may be harmed; a
substantial majority of our revenues are currently concentrated in
the five largest airports and three largest airlines in China, and
if any of these airports or airlines experiences a material
business disruption, our ability to generate revenues and our
results of operations would be materially and adversely affected;
AirMedia's limited operating history makes it difficult to evaluate
our future prospects and results of operations; and other risks
outlined in AirMedia's filings with the U.S. Securities and
Exchange Commission. AirMedia does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law. For more information, please contact: Investor
Contact: Raymond Huang Investor Relations Director AirMedia Group,
Inc. Tel: +86-10-8460-8678 Email: Cynthia He Brunswick Group Tel:
+86-10-6566-2256 Email: DATASOURCE: AirMedia Group Inc. CONTACT:
AirMedia Group, Inc., Raymond Huang , Investor Relations Director,
+86-10-8460-8678, or Brunswick Group, Cynthia He, +86-10-6566-2256,
for AirMedia Group, Inc. Web site: http://www.airmedia.net.cn/
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