BEIJING, Sep. 22, 2009 (Xinhua News Agency) -- Focus Media Holding Ltd. (NASDAQ:FMCN) (FMCN.Nasdaq), China's leading digital media group, has reported its unaudited financial results for the second quarter of 2009.
Net revenue for continuing operations reached 82.1 million US dollars, down 23 percent from 107.2 million dollars for the second quarter of 2008. Net revenue for discontinued operations was 89.2 million dollars, a decline of 15 percent from 104.5 million dollars for the previous year's quarter.
The company posed a net loss of 44.5 million dollars for continuing operations, compared to net loss of 2.3 million dollars for the second quarter of 2008.
Non-GAAP net income from continuing operations was 2.8 million dollars, in comparison with 7.7 million dollars for the second quarter of 2008.
Net income from discontinued operation was 21.5 million dollars, compared to net loss of 33.9 million dollars for the same period of last year.
Focus Media also reported that its second-quarter net loss attributable to shareholders was 23 million dollars or 0.18 dollar per fully diluted ADS, compared to income of 36.1 million dollars or 0.28 dollar per ADS in the year-ago quarter.
Capital expenditures totaled 2.8 million dollars, all attributable to discontinued operations.
Cash earn-out payments paid for continuing operations and discontinued operations were 19.2 million dollars and 42.2 million dollars, respectively.
On December 22, 2008, the company announced that it entered into a definitive agreement with SINA Corporation (NASDAQ:SINA) to sell substantially all the assets of Focus Media's digital out-of-home advertising networks, including the LCD display network, poster frame network and certain in-store networks. These lines of business held-for-sale have been accounted for as discontinued operations in accordance with US GAAP.
For the third quarter, net revenue for continuing operations is expected to be between 46 million and 47 million dollars, while that for discontinued operations is expected to be between 80 million and 81.5 million dollars.
Focus Media plans to restructure its continuing operations and disposes part of subsidiaries in the Internet division and traditional outdoor billboard network division in the third quarter.
