Clear Media Announces Annual Results for 2016

HONG KONG, Jan. 24, 2017 /PRNewswire/ --

Highlights

• Bus shelter advertising revenue, net of value added tax, increased by 8.2% to RMB1,607.8 million.
• EBITDA increased by 8.9% to RMB700.9 million.
• EBIT increased by 6.2% to RMB376.1 million.
• Net profit increased by 6.4% to RMB242.9 million.
• Basic earnings per share increased by 6.2% to RMB0.4484.
• The Directors have proposed payment of a final dividend of HK17 cents per share (2015: HK16 cents).

Clear Media Limited ("Clear Media" or the "Company", together with its subsidiaries, the "Group"; SEHK Stock Code: 100), the largest bus shelter advertising panel operator in China, is pleased to announce its annual results for the year ended 31 December 2016.

The Group's total turnover for the year increased by 8.2% year on year to RMB1,607.8 million. Earnings before interest, tax, depreciation and amortisation ("EBITDA") for the year increased by 8.9% year on year to RMB700.9 million (2015: RMB643.6 million). Earnings before interest and tax ("EBIT") increased by 6.2% to RMB376.1 million (2015: RMB354.3 million). Net profit for the year increased by 6.4% year on year to RMB242.9 million (2015: RMB228.2 million). Basic earnings per share increased by 6.2% year on year to RMB0.4484 (2015: RMB0.4223). The Directors have proposed payment of a final dividend of HK17 cents per share (2015: HK16 cents).

As of 31 December 2016, Clear Media operated the most extensive standardized bus shelter advertising network in Mainland China, with a total of more than 47,000 panels (2015: 45,000) covering 24 cities. Revenue, net of value added tax, from the bus shelter advertising business increased by 8.2% year on year to RMB1,607.8 million (2015: RMB1,486.5 million). The average number of bus shelter panels increased by 7.1% during the year. Yield per shelter before value added tax ("yield") increased by 1.2%. The revenue growth was primarily driven by the increase in the average number of panels in operation during the year.

For the year ended 31 December 2016, revenue before value added tax ("gross revenue") from the Group's bus shelter advertising operations in the key cities of Guangzhou, Shanghai and Beijing increased by 19.8% year on year to RMB1,034.2 million (2015: RMB863.5 million), driven by a 9.7% increase in the average number of bus shelter panels and a high yield per shelter of RMB56,845 (2015: RMB52,078).

Gross revenue from all mid-tier cities, where the Group has operations in, decreased by 5.6% to RMB659.8 million (2015: RMB699.2 million) during the year, mainly due to a 5.2% increase in the average number of bus shelter panels and a lower yield at RMB26,722 (2015: RMB29,799). Among the mid-tier cities where the Company operates, Shenzhen, Shenyang, Jinan, Dalian and Changchun performed particularly well during the year with double-digit growths in revenue.

As of 31 December 2016, the Group operated a total of 253 digital advertising panels in Nanjing (2015: 254). Sales generated from the digital operation amounted to RMB9.9 million for year ended 31 December 2016 (2015: RMB12.2 million).

Mr. Han Zi Jing, Chief Executive Officer of the Group, said: "We expect to maintain our capital expenditure budget for 2017 at a similar scale as 2016 as we continue to identify acquisition opportunities in major cities and new cities to extend the breadth and depth of the reach of our networks, capitalizing on the favorable asset price levels."

Mr. Joseph Tcheng, Chairman of the Group, said: "We envisage the operating environment to remain challenging in 2017. Management expects the revenue performance from customers in different industries to be mixed. We expect a high level of advertising activities from the e-commerce, smart phone and mobile applications sectors. In the long run, we maintain our optimism towards prospects of the out-of-home advertising sector in China on the back of the country's persisting growth in consumer spending and continuing urbanization."

Financial Highlights

Income statement highlights for the year ended 31 December 2016

Balance sheet highlights

About Clear Media Limited

Clear Media is the largest bus shelter advertising panel operator in China, with leading market shares of more than 70% in top-tier cities, and also a broad presence in the fastest growing cities across the country. We provide one-stop solutions for countrywide advertising campaigns for our customers. Listed on the Main Board of The Stock Exchange of Hong Kong since 2002 under the stock code 100, Clear Media's largest shareholder is Clear Channel Outdoor (NYSE: CCO), one of the world's largest outdoor media companies.

For more information on Clear Media, please visit: www.clear-media.net.

For further information:

Clear Media Limited
Mr. Jeffrey Yip
Director of Investor Relations, Company Secretary
Tel: +852-2235-3977
Fax: +852-2235-3911
Email: jeffrey.yip@clear-media.net

iPR Ogilvy & Mather
Natalie Tam/ Peter Chan / Clara Liu
Tel: +852-2136-6182/ +852-2136-6955/ +852-3920-7631
Fax: +852-3170-6606
Email: clearmedia@iprogilvy.com

Related Links

http://www.clear-media .net