Beijing’s VisionChina Media, a supplier of in-vehicle mobile TV and out-of-home digital TV advertising networks on mass transit, announced impressive unaudited financial results for 2008, including:
- Total revenues increased 254 percent over the previous year to $104 million, while advertising service revenue increased 277 percent over the previous year to $104 million.
- Gross profit increased 320 percent to $63 million, from $15 million in 2007.
- Net income increased 398 percent to $47 million, from $9 million in 2007.
- Network capacity, measured by total broadcasting hours, reached 119,170 hours in 2008, compared to 77,925 hours in 2007.
- Sales averaged at about eight advertising minutes per broadcasting hour, compared to an average of slightly more than seven advertising minutes per broadcasting hour in 2007.
- Average advertising service revenue per broadcasting hour increased 147 percent in 2008 to $843, compared to $341 in 2007.
Business that spiked for the Beijing Olympic Games in the third quarter seems to have maintained its momentum through the year’s end, when VisionChina Media added a second TV channel to its Beijing broadcasts, letting subways and buses air programming and advertising independently. Beijing continues to expand its subway system, aiming for about 350 miles of rail lines with room for 9 million daily passengers by 2015.
In January, VisionChina Media contracted with Hangzhou New & Mobile Media for a set amount of daily mobile TV advertising time from several key industries to air on public buses and ferries.
The company predicts its total advertising service revenues for the first quarter of 2009 to range from $27 million to $30 million.