BEIJING, Nov. 21, 2014 /PRNewswire/ -- AirMedia Group Inc.
("AirMedia" or the "Company") (Nasdaq: AMCN), a leading operator of
out-of-home advertising platforms in China targeting
mid-to-high-end consumers, today announced that it has entered into
a strategic partnership agreement with China Telecom Satellite
Communications Co. Ltd. ("CTSAT"), a wholly-owned subsidiary of
China Telecom that specializes in satellite communications
operations, to jointly develop and operate a network for in-flight
satellite connectivity services and multimedia cabin entertainment
on airplanes.
According to the strategic partnership agreement, CTSAT agrees
to provide the Company with, under the same conditions, priority
access to satellite and on-the-ground network and operation
services for developing and operating secure, reliable, and
consistent in-flight connectivity in compliance with the laws and
regulations of China.
"The strategic partnership with CTSAT is crucial and
instrumental for us to further increase our market share of the
in-flight Wi-Fi sector in China.
So far, CTSAT is the only operator of in-flight satellite
communications in China duly
licensed by the competent authority in China. Our strategic partnership with CTSAT is
another example of our strong capability in integrating varies
parts of the value chain to provide a comprehensive solution to
airlines and their customers," commented Mr. Herman Guo, chairman and chief executive officer
of AirMedia. "We have made substantial progress on our
transformation to an in-flight and on-train Wi-Fi operator. We have
already obtained a leading position in the on-train Wi-Fi sector in
China. We expect to also establish
a leading position in in-flight Wi-Fi business in China leveraging our long-term relationship
with airlines, years of operation experiences on advertising in the
air travel sector, our extensive contents and copyrights in the air
sector, and our business chain integration capability."
About AirMedia Group Inc.
AirMedia Group Inc. (Nasdaq: AMCN) is a leading operator of
out-of-home advertising platforms in China targeting mid-to-high-end consumers.
AirMedia operates the largest digital media network in China dedicated to air travel advertising.
AirMedia operates digital frames in 26 major airports and digital
TV screens in 26 major airports, including most of the 30 largest
airports in China. In addition,
AirMedia sells advertisements on the routes operated by seven
airlines, including the four largest airlines in China. In selected major airports, AirMedia
also operates traditional media platforms, such as billboards and
light boxes, and other digital media, such as mega-size LED
screens.
In addition, AirMedia has obtained exclusive contractual
concession rights until the end of 2020 to develop and operate
outdoor advertising platforms at Sinopec's service stations located
throughout China.
For more information about AirMedia, please visit
http://www.airmedia.net.cn.
About China Telecom Satellite Communications Co.
Ltd
Dedicated to satellite communications services, China
Telecom Satellite Communications Co. Ltd, as a wholly-owned
subsidiary of China Telecom, specializes in the operation of its
parent corporation's satellite communications business. It serves
as the resource center, product integration center and professional
support center of China Telecom's satellite communications
business, mainly engaged in Satellite mobile communications, VSAT
communications, International private line and Satellite broadband
access, etc. Providing integrated (Aviation/Land) satellite
communications and broadcasting operating service with
characteristics to subscribers.
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 Business Outlook section and 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 reports to the U.S. Securities and Exchange
Commission, 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, AirMedia's air travel
advertising network, AirMedia may be unable to generate sufficient
cash flow from its operating activities and its prospects and
results of operations could be negatively affected; AirMedia
derives most of its revenues from the provision of air travel
advertising services, and any slowdown in the air travel
advertising industry in China may
materially and adversely affect its revenues and results of
operations; AirMedia's strategy of expanding its advertising
network by building new air travel media platforms and expanding
into traditional media in airports may not succeed, and its failure
to do so could materially reduce the attractiveness of its network
and harm its business, reputation and results of operations; if
AirMedia does not succeed in its expansion into gas station,
in-flight internet services and in-air multimedia platformor other
outdoors media advertising, its future results of operations and
growth prospects may be materially and adversely affected; if
AirMedia's customers reduce their advertising spending or are
unable to pay AirMedia in full, in part or at all for a period of
time due to an economic downturn in China and/or elsewhere or for any other
reason, AirMedia's revenues and results of operations may be
materially and adversely affected; AirMedia faces risks related to
health epidemics, which could materially and adversely affect air
travel and result in reduced demand for its advertising services or
disrupt its operations; if AirMedia is unable to retain
existing concession rights contracts or obtain new concession
rights contracts on commercially advantageous terms that allow it
to operate its advertising platforms, AirMedia may be unable to
maintain or expand its network coverage and its business and
prospects may be harmed; a significant portion of AirMedia's
revenues has been derived from the six largest airports and four
largest airlines in China, and if
any of these airports or airlines experiences a material business
disruption, AirMedia's ability to generate revenues and its results
of operations would be materially and adversely affected;
AirMedia's limited operating history makes it difficult to evaluate
its 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.
Investor Contact:
Raymond Huang
Senior Director of Investor Relations
AirMedia Group Inc.
Tel: +86-10-8460-8678
Email: ir@airmedia.net.cn
SOURCE AirMedia Group Inc.