Clear Media Announces Annual Results for the Year Ended 31 December 2012

   Clear Media Announces Annual Results for the Year Ended 31 December 2012

  PR Newswire

  HONG KONG, Jan. 31, 2013

- Achieved Profitable Growth and Net Profit Margin Expansion

HONG KONG, Jan. 31, 2013 /PRNewswire/ --

  *Turnover increased by 2.4% to HK$1,522 million*
  *Core bus shelter advertising revenue increased by 11.8%
  *EBITDA increased by 13.1% to HK$619 million and EBITDA margin increased to
    40.7% (2011: 36.8%)
  *Net profit increased by 16.9% to HK$219 million and net profit margin
    widened to 14.4% (2011: 12.6%)
  *Basic earnings per share increased by 16.9% to HK41.44 cents
  *The Directors proposed a final dividend of HK 15 cents per share (2011: HK
    5 cents)

* Included in the 2011 business activities were sales generated by the Group's
Shenzhen bus body advertising business, an operation which was terminated in
December 2011.

Clear Media Limited ("Clear Media" or the "Group"; SEHK Stock Code: 100), the
leading outdoor advertising company in China listed on The Stock Exchange of
Hong Kong, is pleased to announce its annual results for the year ended 31
December 2012.

Leveraging Clear Media's leading market position, high-quality assets and
efforts from the Group's management team, it saw its core bus shelter
advertising revenue increased by 11.8% to HK$1,522 million in 2012, from
HK$1,361 million in 2011, amid a tough environment.

Including effects of sales generated by Shenzhen bus body advertising
business, an operation which was terminated in December 2011, the Group's
total turnover increased by 2.4% year on year.

The Group's earnings before interest, tax, depreciation and amortisation
("EBITDA") for the year under review increased 13.1% to HK$619 million, mainly
due to higher turnover of the core bus shelter advertising business and
termination of the Shenzhen bus body advertising business in the current
period. Net profit increased by 16.9% to HK$219 million for the year ended 31
December 2012 on the back of the increase in the turnover of the core bus
shelter advertising business and the increase in bank interest income, while
the net profit margin widened to 14.4% (2011: 12.6%). The Directors proposed a
final dividend of HK15 cents per share (2011: HK 5 cents).

"2012 was the last year of Clear Media's three-year development plan and the
Group has achieved all goals laid out in the plan. Meanwhile, we managed to
add more than 2,000 panels to our bus shelter network, an achievement that
reinforced our leading position in China's nationwide, standardized bus
shelter advertising network. We also secured new orders from certain renowned
international brands as more advertisers were increasingly convinced about the
effectiveness of our bus shelter advertising platform which remained as an
important part of their outdoor advertising budgets," said Mr. Mark Thewlis,
Executive Chairman of the Group.

At the end of 2012, Clear Media operated approximately 37,000 panels (2011:
35,000 panels) covering 28 cities in China, an exposure that made Clear Media
the most scalable bus shelter advertising operator in the country. The
adjustment to the Group's 2012 advertising rate card was relatively high when
compared with those made in recent years. Accordingly, the ASP increased by
14% in 2012. The overall occupancy rate softened to 59% (2011: 66%) mainly as
a result of the challenging operating environment, a 9% increase in average
number of panels and a relatively steep increase in ASP.

During the year under review, Beverages, Telecommunications and Entertainment
were the top three industries, accounting for about 44% of the Group's
turnover. The slowdown in the movie industry, ahead of the 18th CPC National
Congress which took place in November, affected the advertising revenue
contribution from the entertainment sector. Since September, Japanese brands
appeared to have significantly reduced their advertising spend amid the
tension between China and Japan. With domestic consumption in Mainland China
continued to expand during the year, the Group secured new orders from certain
renowned international brands with revenue gains offsetting the decline in
sales to some of the key customers. Accordingly, the Group managed to grow its
bus shelter advertising revenue by 11.8% despite the multitude of unfavorable
factors.

For the year ended 31 December 2012, sales in the top three cities -- Beijing,
Shanghai and Guangzhou -- increased by 14.1% to HK$852 million (2011: HK$747
million) and accounted for 56% of total sales of the core bus shelter business
(2011: 55%).

Beijing performed well with a 20% increase in advertising revenue. Shanghai
demonstrated marked improvement in revenue performance with a 10% increase in
sales in 2012, compared to the 4% decline in 2011. Among the three top-tier
cities, Beijing was the best performing. Revenue from Beijing increased by 20%
to HK$427 million (2011: HK$357 million) mainly due to an increase in bus
shelter panels and a 17% increase in ASP. The average number of bus shelter
panels increased by 11% following the acquisition of concession rights to
operate about 700 bus shelter panels in Beijing. On the back of the
challenging operating environment, the increase in bus shelter panels and the
relatively high increase in ASP, the occupancy rate softened to 65% (2011:
70%).

There was marked improvement in the revenue performance in Shanghai during the
year. Revenue from Shanghai increased by 10% to HK$186 million while the ASP
increased by 17%. The average number of panels increased by 6%. The occupancy
rate, on the other hand, softened to 51% (2011: 57%).

Revenue from Guangzhou increased by 9% to HK$239 million (2011: HK$220
million) mainly due to a 20% increase in average panel numbers and the 13%
rise in ASP. The occupancy rate softened to 50% (2011: 62%).

Revenue derived from all mid-tier cities increased by 9% to HK$668 million for
the year. ASP increased by 9% and occupancy rate softened to 61% in 2012 from
66% in 2011. The average number of bus shelter panels increased by 7%. There
were ten cities with double-digit revenue growth.

"Our management maintains a cautious view on expectation of a near-term
revenue growth given the current economic environment. In the long run, Clear
Media is optimistic about prospects of the advertising sector in China on the
back of the continuous development of domestic consumption and urbanisation.
Going forward, our management plans to further expand our bus shelter
advertising network by adding more bus shelter panels and raise the average
panel yield which is a function of both the ASP and the average occupancy
rate," said Mr. Han Zi Jing, CEO of the Group.

"In the future, the Group expect to utilize its financial resources to
strengthen and broaden our core advertising business by expanding our bus
shelter network, to consider deployment of new display or interactive
technologies at the right timing, to actively explore mergers and acquisition
opportunity with a view to profitably expand our advertising footprint in
China and Asia Pacific region and to create wealth for shareholders."

Financial Highlights

Income Statement Highlights For the year ended December 31

(HK$'000)                               2012             2011        % Change
Turnover                           1,522,036        1,485,898        +2.4%[1]
EBITDA                               619,245          547,456          +13.1%
EBIT                                 312,284          275,129          +13.5%
Net profit[2]                        219,236          187,542          +16.9%
Basic EPS (HK cents)                   41.44            35.45          +16.9%
Dividend per share (HK
cents)                                    15                5           +200%
[1] Included in the 2011 business activities were sales generated by the
Group's Shenzhen bus body advertising business, an operation which was
terminated in December 2011. If we were to exclude the impact brought about
by the termination of this business, turnover of the Group increased by 11.8%
to HK$1,522 million.

[2] Net profit attributable to shareholders of the Company.

Balance Sheet Highlights As at December 31

(HK$'000)                      2012      2011
Cash and cash equivalents 1,289,724   973,226
Total assets              4,017,026 3,733,576
Total debt                       --        --
Total equity              3,377,428 3,156,878

About Clear Media Limited

Clear Media is the leading outdoor media company in China listed on the Main
Board of The Stock Exchange of Hong Kong, and derives 100% of its revenue from
the PRC. One of its unique strengths is its parentage - Clear Channel (NYSE:
CCO), the world's largest outdoor media company, which brings in global best
practices in the industry to the Group. Clear Media has created a standardized
bus shelter network that covers nearly 30 key cities and reaches the most
affluent consumers in China. The Group enjoys over a 75% market share in all
tier-one cities and an average of a 50+% market share in other mid-tier cities
and serves leading international and local advertisers.

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

Website: http://www.clear-media.net
Contact: At Clear Media Limited, Mr. Jeffrey Yip, Director of Investor
Relations, Company Secretary, +852-2235-3977, jeffrey.yip@clear-media.net; or
at iPR Ogilvy Ltd., Natalie Tam, +852-2136-6182, natalie.tam@iprogilvy.com,
Peter Chan, +852-2136-6955, peter.chan@iprogilvy.com, Beatrice Wong,
+852-2136-6176, beatrice.wong@iprogilvy.com, Cindy Cheuk, +852-3920-7648,
cindy.cheuk@iprogilvy.com