BEIJING, April 9, 2015 /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 Guangzhou Meizheng Advertising Co.,
Ltd. ("Meizheng"), one of its consolidated entities in
which AirMedia has 63.2% of the equity interest, has
recently won a bidding and has entered into a concession agreement
(the "Concession Agreement") with Shanghai Railway Culture and
Advertising Development Co., Ltd., pursuant to which Meizheng has
been granted the exclusive right to install and operate Wi-Fi
systems on ordinary trains operated by Shanghai Railway Bureau. As
of the time of execution of the Concession Agreement, Shanghai
Railway Bureau had 147 groups of ordinary trains.
Shanghai Railway Bureau had 275 million passengers on its
high-speed trains and 175 million passengers on its ordinary trains
in 2014.
Before obtaining the aforementioned concession right, AirMedia
was granted concession rights to install and operate Wi-Fi systems
on the high-speed trains operated by Beijing Railway Bureau,
Shanghai Railway Bureau and Guangzhou Railway (Group) Corporation,
with which AirMedia established a leading position in Wi-Fi
services on high-speed trains in China, in terms of the number of high-speed
trains on which it has concession rights to operate on-train Wi-Fi
systems. In addition, AirMedia also holds the concession rights to
install and operate Wi-Fi systems on ordinary trains operated by
Xinjiang Railway Bureau.
"In addition to the developments we have made on high-speed
trains, we also intend to obtain a leading position in Wi-Fi
services on ordinary trains in China. We believe there will be tremendous
business opportunities when hundreds of millions of passengers use
our Wi-Fi services when they travel. We have been doing technical
test of Wi-Fi services on ordinary trains operated by Xinjiang
Railway Bureau since late January
2015. With the test results and experience, we expect to
install and operate Wi-Fi services on more ordinary trains and
high-speed trains in 2015, as well as to start monetizing this
unique Wi-Fi gateway and platform," commented Mr. Herman Guo, chairman and chief executive officer
of AirMedia.
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 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.
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 platform or 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
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SOURCE AirMedia Group Inc.