AirMedia Group Inc.
), a premier operator of digital media network in China, has
recently updated its guidance for the fourth quarter of 2012. The
company presently expects net revenues in the range of $81.0
million to $83.0 million compared to the earlier forecast of
$77.0 million to $80.0 million.
The revised revenue guidance translates to a
quarter-over-quarter increase of 13.5% to 16.3%, and a
year-over-year dip of 2.3% to 4.7%.
AirMedia credits this spike in revenue guidance to its
diversified customer base. The company has witnessed an adverse
impact on its advertising revenues in the quarter from Japanese
brands, particularly from automobile brands, largely due to the
anti-Japan protests in China. However, a diversified portfolio
and continued growth from other sectors more than offset this
decline and induced a positive revision in revenue guidance.
During the last reported quarter, AirMedia was also able to
surpass the high end of its revenue guidance. The company
primarily benefited from the stable growth of its digital frames
in airports along with its mega-size LED screens, which saw
strong demand from advertisers. Going forward, the company
envisages mega-size LED screens to form a larger pie of its total
revenue to become one of the growth drivers in the coming
Focusing on mid-to-high-end consumers, AirMedia operates the
largest digital media network in China dedicated to air travel
advertising. The company operates digital frames and digital TV
screens in 34 major airports, including most of the largest
airports of the country.
The company also sells advertisement space on the routes of
the four largest airlines in China, besides operating traditional
media platforms like billboards and digital media like LED
screens in selected airports.
AIRMEDIA GP-ADR (AMCN): Free Stock Analysis
CLEAR CHANL OUT (CCO): Free Stock Analysis
To read this article on Zacks.com click here.
We have a Neutral recommendation on AirMedia, which currently has
a Zacks #3 Rank that translates into a short-term Hold rating. We
also have a Neutral recommendation and a Zacks #2 Rank
(short-term Buy rating) for
Clear Channel Outdoor Holdings Inc.
), one of the peers of AirMedia.