AirMedia Announces Unaudited First Quarter 2013 Financial Results

      AirMedia Announces Unaudited First Quarter 2013 Financial Results

PR Newswire

BEIJING, May 13, 2013

BEIJING, May 13, 2013 /PRNewswire/ -- AirMedia Group Inc. ("AirMedia" or the
"Company") (Nasdaq: AMCN), a leading operator of out-of-home advertising
platforms in China targeting mid-to-high-end consumers, today announced its
unaudited financial results for the first quarter ended March 31, 2013.

First Quarter 2013 Financial and Business Highlights

  oTotal revenues decreased by 4.4% year-over-year and by 23.3%
    quarter-over-quarter to US$64.5 million. The year-over-year decrease was
    partially due to China's replacement of regular business tax with Value
    Added Tax ("VAT") in Beijing, one of AirMedia's key regions of operations.
  oNet revenues decreased by 3.8% year-over-year and by 23.0%
    quarter-over-quarter to US$63.6 million.
  oNet loss attributable to AirMedia's shareholders was US$3.6 million,
    compared to net loss attributable to AirMedia's shareholders of US$7.3
    million in the same period one year ago. Basic and diluted net loss
    attributable to AirMedia's shareholders per American Depositary Share
    ("ADS") were both US$0.06.
  oAdjusted net loss attributable to AirMedia's shareholders (non-GAAP),
    which is net loss attributable to AirMedia's shareholders excluding
    share-based compensation expenses, amortization of acquired intangible
    assets, impairment of goodwill and impairment of intangible assets, was
    US$3.1 million. Adjusted basic net loss attributable to AirMedia's
    shareholders per ADS (non-GAAP), which is adjusted net loss attributable
    to AirMedia's shareholders (non-GAAP) divided by the number of ADSs
    outstanding, was US$0.05. Adjusted diluted net loss attributable to
    AirMedia's shareholders per ADS (non-GAAP), which is adjusted net loss
    attributable to AirMedia's shareholders (non-GAAP) divided by the number
    of ADSs outstanding as adjusted for dilution after taking into account
    option grants under the Company's current Share Incentive Plan, was
    US$0.05.

"We have been focusing on turning around our unprofitable product lines. As we
announced today in a separate press release, our gas station media network
received an investment of RMB640 million (US$104.0 million) fromElec-Tech
International Co., Ltd. We intend to use the investment to install LED screens
in our gas stations. We are excited about the progress we've made in further
developing our gas station media network, and we believe we are heading in the
right direction to turn around this loss-making product line. We believe LED
screens, which are larger and more eye-catching, will be a suitable media for
gas stations because they will substantially increase the advertising capacity
of our gas station media network and dramatically reduce our operational costs
in this media network," commented Mr. Herman Guo, chairman and chief executive
officer of AirMedia.

"We made improvements in cost control in the first quarter of 2013. Cost of
revenues for the first quarter of 2013 decreased by 4.3% year-over-year and by
8.1% quarter-over-quarter. While continuing to increase our revenues,
eliminating the losses from our unprofitable product lines is equally
important. The valuation of the recent investment in our gas station media
network by Elec-Tech International Co., Ltd. affirmed the unique value and
promising prospect of our gas station media network," Mr. Henry Ho, AirMedia's
chief financial officer, commented.

First Quarter 2013 Financial Results

Revenues

Total revenues by product line (numbers in US$ 000's except for percentages):

             Quarter            Quarter             Quarter
             Ended   % of       Ended    % of       Ended   % of       Y/Y     Q/Q
             March   Total      December Total      March   Total      Growth  Growth
             31,     Revenues  31, 2012 Revenues  31,     Revenues  rate    rate
             2013                                   2012
Air Travel
Media        60,532  93.8%      76,931   91.3%      62,299  92.2%      -2.8%   -21.3%
Network
 Digital
frames in    33,516  51.9%      40,770   48.4%      31,927  47.3%      5.0%    -17.8%
airports
 Digital
TV screens   2,752   4.3%       5,408    6.4%       2,169   3.2%       26.9%   -49.1%
in airports
 Digital
TV screens   3,788   5.9%       7,874    9.4%       5,017   7.4%       -24.5%  -51.9%
on
airplanes

Traditional  18,932  29.3%      20,802   24.7%      21,799  32.3%      -13.2%  -9.0%
media in
airports
 Other
revenues in  1,544   2.4%       2,077    2.4%       1,387   2.0%       11.3%   -25.7%
air travel
Gas Station
Media        2,789   4.3%       4,760    5.7%       3,290   4.9%       -15.2%  -41.4%
Network
Other Media  1,226   1.9%       2,491    3.0%       1,955   2.9%       -37.3%  -50.8%
Total        64,547  100.0%     84,182   100.0%     67,544  100.0%     -4.4%   -23.3%
revenues
Net          63,612             82,647              66,144             -3.8%   -23.0%
revenues

Total revenues for the first quarter of 2013 reached US$64.5 million,
representing a year-over-year decrease of 4.4% from US$67.5 million in the
same period one year ago and a quarter-over-quarter decrease of 23.3% from
US$84.2 million in the previous quarter. The year-over-year decrease was
primarily due to decreases in revenues from traditional media in airports,
digital TV-screens on airplanes, other media and gas station media network, as
well as China's replacement of regular business tax with VAT in Beijing, one
of AirMedia's key regions of operations. The decrease was partially offset by
increases in revenues from digital frames in airports and digital TV screens
in airports. The quarter-over-quarter decrease in total revenues was primarily
due to decreases in revenues from all of the Company's products lines.

Revenues from digital frames in airports

Revenues from digital frames in airports for the first quarter of 2013
increased by 5.0% year-over-year and decreased by 17.8% quarter-over-quarter
to US$33.5 million. The year-over-year increase was primarily due to
additional revenues from the rapidly growing product line of mega-size LED
screens, which added operations in additional airports. The
quarter-over-quarter decrease was primarily due to a seasonally weak quarter
in the first quarter of 2013.

Revenues from digital TV screens in airports

Revenues from digital TV screens in airports for the first quarter of 2013
increased by 26.9% year-over-year and decreased by 49.1% quarter-over-quarter
to US$2.8 million. The year-over-year increase was primarily due to the
Company's continued sales efforts. The quarter-over-quarter decrease was
primarily due to a seasonally weak quarter in the first quarter of 2013.

Revenues from digital TV screens on airplanes

Due to disagreements over renewal fees, AirMedia decided not to renew its
concession rights contract for the digital TV screens on Air China's planes.
In 2013, in order to control its concession cost, AirMedia changed its
business cooperation model with Air China so that instead of holding the
exclusive concession rights for Air China, AirMedia now finds potential
advertisers before purchasing placing right from Air China for specific
advertising time slots. Under this new arrangement, AirMedia does not pay
extra concession fees to Air China for unsold time slots. AirMedia believes it
is capable of convincing most of the original advertisers that previously
advertised on Air China's digital TV screens to reallocate their advertising
budgets to AirMedia's other product lines. AirMedia expects that the amount of
revenue loss caused by not renewing its concession rights contract with Air
China would be smaller than the concession fees it would need to pay to Air
China under a renewed concession rights contract. AirMedia believes that it
would benefit from choosing not to renew the Air China concession rights
contract for the time being and expects the non-renewal to help AirMedia
control increase of concession fees in the long term.

Revenues from digital TV screens on airplanes for the first quarter of 2013
decreased by 24.5% year-over-year and by 51.9% quarter-over-quarter to US$3.8
million. The year-over-year decrease was primarily due to the decrease in
revenues of digital TV screens on Air China's airplanes as AirMedia chose not
to renew the concession rights contract with Air China. The
quarter-over-quarter decrease was primarily due to a seasonally weak quarter
in the first quarter of 2013 and the decrease in revenues of digital TV
screens on Air China's airplanes as AirMedia chose not to renew the concession
rights contract with Air China.

Revenues from traditional media in airports

Revenues from traditional media in airports for the first quarter of 2013
decreased by 13.2% year-over-year and by 9.0% quarter-over-quarter to US$18.9
million. The year-over-year decrease was primarily due to a reduction in the
number of locations for sale as a result ofa delay in a scheduled media
format upgrade, and the expiration of the concession rights contract of most
of AirMedia's traditional media in Shenzhen Baoan International Airport, which
AirMedia chose not to renew. AirMedia was upgrading 18 light boxes at prime
locations inside Beijing Capital International Airport to a better advertising
format, but the upgrade is behind schedule. The quarter-over-quarter decrease
was primarily due to a seasonally weak quarter in the first quarter of 2013
and the expiration of the concession rights contract of most of AirMedia's
traditional media in Shenzhen Baoan International Airport, which AirMedia
chose not to renew.

Revenues from the gas station media network

Revenues from the gas station media network for the first quarter of 2013
decreased by 15.2% year-over-year and by 41.4% quarter-over-quarter to US$2.8
million. The year-over-year decrease was primarily due to the fact that some
advertisers expressed interest in reserving their budgets for the LED screens
that AirMedia plans to install in its gas stations, as well as China's
replacement of regular business tax with VAT in Beijing. The
quarter-over-quarter decrease was primarily due to a seasonally weak quarter
in the first quarter of 2013.

Revenues from other media

Revenues from other media were primarily revenues from unipole signs and other
outdoors media. Revenues from other media for the first quarter of 2013
decreased by 37.3% year-over-year and by 50.8% quarter-over-quarter to US$1.2
million. The year-over-year and quarter-over-quarter decreases were primarily
due to expiration of the contracts for some locations in November and December
2012. AirMedia renewed some of these contracts and resumed operations of these
locations in February 2013, but these locations did not operate for the entire
first quarter of 2013.

Business tax and other sales tax

Business tax and other sales tax for the first quarter of 2013 were
US$935,000, compared to US$1.4 million in the same period one year ago and
US$1.5 million in the previous quarter. The year-over-year decrease was due to
China's replacement of regular business tax with the VAT in Beijing, one of
AirMedia's key regions of operations. Prior to September 1, 2012, revenues
were recorded gross of business tax and subsequent to the change, revenues are
recorded net of VAT thereafter. Revenues from most of the Company's product
lines booked in total revenues were already net revenues after deducting VAT
in the first quarter of 2013. The majority of the Company's business tax and
other sales tax, amounting to US$935,000 in the first quarter of 2013, were
other sales tax. The quarter-over-quarter decrease was primarily due to the
decrease in total revenues.

Net revenues

Net revenues for the first quarter of 2013 reached US$63.6 million,
representing a year-over-year decrease of 3.8% from US$66.1 million in the
same period one year ago and a quarter-over-quarter decrease of 23.0% from
US$82.6 million in the previous quarter.

Cost of Revenues

Cost of revenues for the first quarter of 2013 was US$60.1 million,
representing a year-over-year decrease of 4.3% from 62.8 million in the same
period one year ago and a quarter-over-quarter decrease of 8.1% from US$65.4
million in the previous quarter. The year-over-year and quarter-over-quarter
decreases were primarily due to lower agency fees for third-party advertising
agencies, which were partially offset by higher concession fees. Cost of
revenues as a percentage of net revenues in the first quarter of 2013 was
94.5%, down from 95.0% in the same period one year ago and up from 79.1% in
the previous quarter.

AirMedia incurs concession fees to airports for placing and operating digital
frames, digital TV screens, traditional media and other displays in airports,
to airlines for playing programs on their digital TV screens, to Sinopec for
placing outdoors media in its gas stations and to other media resources owners
for placing unipole signs and other outdoors media.

Concession fees for the first quarter of 2013 increased by 6.2% year-over-year
and by 2.3% quarter-over-quarter to US$46.2 million. The year-over-year and
quarter-over-quarter increases were primarily due to newly signed or renewed
concession rights contracts during the period. Concession fees as a percentage
of net revenues in the first quarter of 2013 was 72.6%, increasing from 65.7%
in the same period one year ago and from 54.6% in the previous quarter. The
year-over-year and quarter-over-quarter increases of concession fees as a
percentage of net revenues were primarily due to the fact that net revenues
decreased while concession fees increased due to newly signed or renewed
concession rights contracts.

Gross Profit

Gross profit for the first quarter of 2013 increased by 5.2% year-over-year
and decreased by 79.8% quarter-over-quarter to US$3.5 million.

Gross profit as a percentage of net revenues for the first quarter of 2013 was
5.5%, compared to 5.0% in the same period one year ago and 20.9% in the
previous quarter. The year-over-year increase in gross profit as a percentage
of net revenues was due to the fact that cost of revenues decreased faster
than net revenues. The quarter-over-quarter decrease in gross profit as a
percentage of net revenues was due to the fact that net revenues decreased
faster than cost of revenues.

Operating Expenses

Operating expenses (numbers in US$ 000's except for percentages):

               Quarter            Quarter             Quarter
               Ended   % of Net   Ended    % of Net   Ended   % of Net   Y/Y    Q/Q
               March   Revenues  December Revenues  March   Revenues  Growth Growth
               31,                31, 2012            31,                rate   rate
               2013                                   2012
Selling and
marketing      4,222   6.6%       5,289    6.4%       4,083   6.2%       3.4%   -20.2%
expenses
General and
administrative 4,878   7.7%       5,430    6.6%       6,128   9.3%       -20.4% -10.2%
expenses
Total
operating      9,100   14.3%      10,719   13.0%      10,211  15.5%      -10.9% -15.1%
expenses
Adjusted
operating      8,625   13.6%      9,721    11.8%      8,314   12.6%      3.7%   -11.3%
expenses
(non-GAAP)

Total operating expenses for the first quarter of 2013 were US$9.1 million,
representing a year-over-year decrease of 10.9% from US$10.2 million in the
same period one year ago and a quarter-over-quarter decrease of 15.1% from
US$10.7 million in the previous quarter.

Share-based compensation expenses included in the total operating expenses for
the first quarter of 2013 were US$280,000, compared to share-based
compensation expenses of US$992,000 in the same period one year ago and
share-based compensation expenses of US$804,000 in the previous quarter. The
year-over-year decrease in share-based compensation expenses was primarily due
to the ending of the vesting period of stock options granted on July 10, 2009.
The quarter-over-quarter decreases in share-based compensation expenses were
primarily due to the fact that one-time share-based compensation expenses were
incurred in the fourth quarter of 2012 as a result of the extension of the
expiration date for certain stock option holders to exercise their vested
stock options.

Adjusted operating expenses (non-GAAP), which excluded share-based
compensation expenses, amortization of acquired intangible assets, impairment
of goodwill, and impairment of intangible assets, were US$8.6 million for the
first quarter of 2013, representing a year-over-year increase of 3.7% from
US$8.3 million in the same period one year ago and a quarter-over-quarter
decrease of 11.3% from US$9.7 million in the previous quarter. Adjusted
operating expenses as a percentage of net revenues (non-GAAP), which is
calculated by dividing adjusted operating expenses (non-GAAP) by net revenues,
was 13.6% in the first quarter of 2013, compared to 12.6% in the same period
one year ago and 11.8% in the previous quarter.

Please refer to the attached table captioned "Reconciliation of GAAP Operating
Expenses to Non-GAAP Adjusted Operating Expenses" for a reconciliation of
operating expenses under U.S. GAAP to adjusted operating expenses (non-GAAP).

Selling and marketing expenses for the first quarter of 2013 were US$4.2
million. This represented a year-over-year increase of 3.4% from US$4.1
million and a quarter-over-quarter decrease of 20.2% from US$5.3 million. The
year-over-year increase was primarily due to higher expenses related to the
Company's direct sales force and higher travel expenses. The
quarter-over-quarter decrease was primarily due to lower sales commissions for
the Company's direct sales force.

General and administrative expenses for the first quarter of 2013 were US$4.9
million, including share-based compensation expenses of US$280,000. This
represented a year-over-year decrease of 20.4% from US$6.1 million in the same
period one year ago and a quarter-over-quarter decrease of 10.2% from US$5.4
million in the previous quarter. The year-over-year decrease was primarily due
to lower amortization of acquired intangible assets, lower share-based
compensation expenses, lower professional fees, and lower salary expenses,
which were partially offset by higher bad-debt provision. The
quarter-over-quarter decrease was primarily due to lower share-based
compensation expenses and lower salary expenses, which were partially offset
by higher bad-debt provision.

Loss/Income  from Operations

Loss from operations for the first quarter of 2013 was US$5.6 million,
compared to loss from operations of US$6.9 million in the same period one year
ago and income from operations of US$6.5 million in the previous quarter. Loss
from operations as a percentage of net revenues for the first quarter of 2013
was negative 8.8%, compared to negative 10.4% in the same period one year ago
and 7.9% in the previous quarter.

Adjusted loss from operations (non-GAAP), which excluded share-based
compensation expenses, amortization of acquired intangible assets, impairment
of goodwill and impairment of intangible assets, was US$5.1 million for the
first quarter of 2013, compared to adjusted loss from operations (non-GAAP) of
US$5.0 million in the same period one year ago and adjusted income from
operations (non-GAAP) of US$7.5 million in the previous quarter. Adjusted
operating margin (non-GAAP), which excluded the effect of share-based
compensation expenses, amortization of acquired intangible assets, impairment
of goodwill, and impairment of intangible assets, was negative 8.1% for the
first quarter of 2013, compared to negative 7.5% in the same period one year
ago and 9.1% in the previous quarter.

Please refer to the attached table captioned "Reconciliation of GAAP Income
(Loss) from Operations to Non-GAAP Adjusted Income (Loss) from Operations" for
a reconciliation of income (loss) from operations under U.S. GAAP to adjusted
income (loss) from operations (non-GAAP).

Income Tax Benefits/Expenses

Income tax benefits for the first quarter of 2013 were US$1.0 million,
compared to income tax expenses of US$1.9 million in the same period one year
ago and income tax expenses of US$4.2 million in the previous quarter.

Net Loss/Income Attributable to AirMedia's Shareholders

Net loss attributable to AirMedia's shareholders for the first quarter of 2013
was US$3.6 million, compared to net loss attributable to AirMedia's
shareholders of US$7.3 million in the same period one year ago and net income
attributable to AirMedia's shareholders of US$3.4 million in the previous
quarter. The basic net loss attributable to AirMedia's shareholders per ADS
for the first quarter of 2013 was US$0.06, compared to basic net loss
attributable to AirMedia's shareholders per ADS of US$0.12 in the same period
one year ago and basic net income attributable to AirMedia's shareholders per
ADS of US$0.05 in the previous quarter. The diluted net loss attributable to
AirMedia's shareholders per ADS for the first quarter of 2013 was US$0.06,
compared to diluted net loss attributable to AirMedia's shareholders per ADS
of US$0.12 in the same period one year ago and diluted net income attributable
to AirMedia's shareholders per ADS of US$0.05 in the previous quarter.

Adjusted net loss attributable to AirMedia's shareholders (non-GAAP) was
US$3.1 million for the first quarter of 2013, compared to adjusted net loss
attributable to AirMedia's shareholders (non-GAAP) of US$5.4 million in the
same period one year ago and adjusted net income attributable to AirMedia's
shareholders (non-GAAP) of US$4.4 million in the previous quarter. Adjusted
basic net loss attributable to AirMedia's shareholders per ADS (non-GAAP) was
US$0.05 for the first quarter of 2013, compared to adjusted basic net loss
attributable to AirMedia's shareholders per ADS (non-GAAP) of US$0.09 in the
same period one year ago and adjusted basic net income attributable to
AirMedia's shareholders per ADS (non-GAAP) of US$0.07 in the previous quarter.
Adjusted diluted net loss attributable to AirMedia's shareholders per ADS
(non-GAAP) was US$0.05 for the first quarter of 2013, compared to adjusted
diluted net loss attributable to AirMedia's shareholders per ADS (non-GAAP) of
US$0.09 in the same period one year ago and adjusted diluted net income
attributable to AirMedia's shareholders per ADS (non-GAAP) of US$0.07 in the
previous quarter.

Please refer to the attached table captioned "Reconciliation of GAAP Net
Income (Loss) and EPS to Non-GAAP Adjusted Net Income and EPS" for a
reconciliation of net income (loss) attributable to AirMedia's shareholders
and basic and diluted net income (loss) attributable to AirMedia's
shareholders per ADS under U.S. GAAP to adjusted net income attributable to
AirMedia's shareholders (non-GAAP) and adjusted basic and diluted net income
attributable to AirMedia's shareholders per ADS (non-GAAP).

Cash, Restricted Cash and Short-term Investments

Cash, restricted cash and short-term investments totaled US$121.0 million as
of March 31, 2013, compared to US$126.3 million as of December 31, 2012. The
decrease in cash, restricted cash and short-term investments from December 31,
2012 was primarily due to negative cash flow from operations.

ADS Repurchases and Expansion of Share Repurchase Program

On March 21, 2011, AirMedia's board of directors authorized AirMedia to
repurchase up to US$20 million of its own outstanding ADSs within two years
from March 21, 2011. On September 24, 2012, AirMedia's board of directors
approved to increase the size of the share repurchase program to US$40 million
from US$20 million and to extend the termination date of the share repurchase
program to March 20, 2014 from March 20, 2013. As of May 12, 2013, AirMedia
had repurchased an aggregate of 5,676,385ADSs on the open market for a total
consideration of US$15.9million.

Other Recent Developments

On May 13, 2013, AirMedia's board of directors approved an investment
agreement between several entities affiliated with AirMedia, including Beijing
GreatView Media Advertising Co., Ltd. ("GreatView Media"), the primary
operating entity of AirMedia's gas station media network, its current
shareholders, and Elec-Tech International Co., Ltd. ("Elec-Tech") (Shenzhen
Stock Exchange code: 002005). Pursuant to the investment agreement, Elec-Tech
will invest RMB640 million (US$104.0 million) to purchase ordinary shares
representing approximately 21.27% of the equity interest of GreatView Media.
After the completion of the transaction, AirMedia will indirectly control
61.41% of the equity interest of GreatView Media. GreatView Media's current
shareholders undertook to use the full amount of Elec-Tech's investment to
purchase LED screens from Elec-Tech or its subsidiaries. The investment is
subject to the approval of Elec-Tech's shareholders.

On April 24, 2013, AirMedia commenced operations of 20 sets of digital TV
screens and TV-attached digital frames at newly opened Section D of Terminal 3
of Beijing Capital International Airport.

On April 22, 2013, AirMedia commenced operations of two mega-size LED screens
at the arrival aisle of Xi'an Xianyang International Airport ("Xi'an Airport")
in Shaanxi province. In addition to these two mega-size LED screens, AirMedia
operates another mega-size LED screen in the departure passage of Xi'an
Airport.

On April 19, 2013, AirMedia commenced operations of 12 stand-alone digital
frames at the baggage claim areas in Sanya Fenghuang International Airport in
Hainan province.

On April 18, 2013, AirMedia commenced operations of 12 stand-alone digital
frames at the baggage claim areas in Xi'an Airport.

On March 15, 2013, AirMedia commenced operations of 14 stand-alone digital
frames at Guangzhou Baiyun International Airport.

Business Outlook

AirMedia currently expects its net revenues for the second quarter of 2013 to
range from US$63.0 million to US$65.0 million, representing a year-over-year
decrease of 7.5% to 4.6% from the same period in 2012 and a
quarter-over-quarter decrease of 2.4% to a quarter-over-quarter increase of
0.7% from the previous quarter.

AirMedia currently expects its concession fees to be approximately US$46.0
million in the second quarter of 2013, which is relatively unchanged from the
previous quarter. 

The above forecast reflects AirMedia's current and preliminary view and is
therefore subject to change. Please refer to the Safe Harbor Statement below
for the factors that could cause actual results to differ materially from
those contained in any forward-looking statement.

Summary of Selected Operating Data

                      Quarter       Quarter Ended  Quarter      Y/Y     Q/Q
                      Ended March   December 31,   Ended March  Growth  Growth
                      31, 2013      2012           31, 2012     Rate    Rate
Digital frames in
airports
 Number of airports  33            34             34           -2.9%   -2.9%
in operation
 Number of time
slots available for   31,946        33,018         32,997       -3.2%   -3.2%
sale (2)
 Number of time      12,935        14,756         12,448       3.9%    -12.3%
slots sold (3)
 Utilization rate    40.5%         44.7%          37.7%        2.8%    -4.2%
(4)
 Average advertising
revenue per time slot US$2,591      US$2,763       US$2,565     1.0%    -6.2%
sold (5)
Digital TV screens in
airports
 Number of airports  33            34             37           -10.8%  -2.9%
in operation
 Number of time
slots available for   16,971        16,560         17,683       -4.0%   2.5%
sale (1)
 Number of time      4,829         9,088          1,663        190.4%  -46.9%
slots sold (3)
 Utilization rate    28.5%         54.9%          9.4%         19.1%   -26.4%
(4)
 Average advertising
revenue per time slot US$570        US$595         US$1,304     -56.3%  -4.2%
sold (5)
Digital TV screens on
airplanes
 Number of airlines  8             9              9            -11.1%  -11.1%
in operation
 Number of time
slots available for   372           444            444          -16.2%  -16.2%
sale (1)
 Number of time      135           234            175          -22.9%  -42.3%
slots sold (3)
 Utilization rate    36.3%         52.7%          39.4%        -3.1%   -16.4%
(4)
 Average advertising
revenue per time slot US$28,059     US$33,650      US$28,669    -2.1%   -16.6%
sold (5)
Traditional Media in
airports
Numbers of locations
available for sale    908           979            914          -0.7%   -7.3%
(6)
Numbers of locations  546           573            680          -19.7%  -4.7%
sold (7)
Utilization rate (8)  60.1%         58.5%          74.4%        -14.3%  1.6%
Average advertising
revenue per location  US$34,674     US$36,304      US$32,057    8.2%    -4.5%
sold (9)

Notes:

(1) A time slot is defined as a 30-second equivalent advertising time unit for
digital TV screens in airports and digital TV screens on airplanes, which is
shown during each advertising cycle on a weekly basis in a given airport or on
a monthly basis on the routes of a given airline, respectively. AirMedia's
airport advertising programs are shown repeatedly on a daily basis during a
given week in one-hour cycles and each hour of programming includes 20 minutes
of advertising content, which allows the Company to sell a maximum of 40 time
slots per week. The number of time slots available for sale for the digital TV
screens in airports during the period presented is calculated by multiplying
the time slots available for sale per week per airport by the number of weeks
during the period presented when AirMedia had operations in each airport and
then calculating the sum of all the time slots available for sale for each of
the Company's network airports. The length of AirMedia's in-flight programs
typically ranges from approximately 45 minutes to an hour per flight,
approximately five to 13 minutes of which consist of advertising content. The
number of time slots available for sale for our digital TV screens on
airplanes during the period presented is calculated by multiplying the time
slots per airline per month by the number of months during the period
presented when AirMedia had operations on each airline and then calculating
the sum of all the time slots available for sale for each of its network
airlines.

(2) A time slot is defined as a 12-second equivalent advertising time or
6-second equivalent advertising time units for digital frames in airports,
which is shown during each standard advertising cycle on a weekly basis in a
given airport. AirMedia's standard airport advertising programs are shown
repeatedly on a daily basis during a given week in 10-minute cycles or
5-minute cycles, which allows the Company to sell a maximum of 50 time slots
per week. The length of time slot and advertising program cycle of some
digital frames in several airports are different from the standard ones. The
number of time slots available for sale for the digital frames in airports
during the period presented is calculated by multiplying the time slots per
week per airport by the number of weeks during the period presented when the
Company had operations in each airport and then calculating the sum of all the
time slots available for each of its network airports.

(3) Number of time slots sold refers to the number of 30-second equivalent
advertising time units for digital TV screens in airports and digital TV
screens on airplanes or 12-second equivalent advertising time units or
6-second equivalent advertising time units for digital frames in airports sold
during the period presented.

(4) Utilization rate for digital TV screens in airports, digital TV screens on
airplanes and digital frames in airports refers to total time slots sold as a
percentage of total time slots available for sale during the relevant period.

(5) Average advertising revenue per time slot sold for digital TV screens in
airports, digital TV screens on airplanes and digital frames in airports are
calculated by dividing each of the Company's revenues derived from digital TV
screens in airports, digital TV screens on airplanes and digital frames in
airports by the respective number of time slots sold.

(6) The number of locations available for sale in traditional media is defined
as the sum of (1) the number of light boxes and billboards in Beijing,
Shenzhen, Wenzhou and certain other airports (light boxes and billboards), and
(2) the number of gate bridges in certain airports (gate bridges).

(7) The number of locations sold is defined as the sum of (1) the number of
light boxes and billboards sold and (2) the number of gate bridges sold. To
calculate the number of light boxes and billboards sold in a given airport,
the "utilization rates of light boxes and billboards" in such airport is first
calculated by dividing the "total value of light boxes and billboards sold" in
such airport by the "total value of light boxes and billboards" in such
airport. The "total value of light box and billboard sold" in a given airport
is calculated as the daily listing prices of each light boxes and billboards
sold in such airport multiplied by their respective number of days sold during
the period presented. The "total value of light boxes and billboards" in a
given airport is calculated as the sum of quarterly listing prices of all the
light boxes and billboards in such airport during the period presented. The
number of light boxes and billboards sold in a given airport is then
calculated as the number of light boxes and billboards available for sale in
such airport multiplied by the utilization rates of light boxes and billboards
in such airport. The number of gate bridges sold in a given airport is counted
based on numbers in the relevant contracts.

(8) Utilization rate for traditional media in airports refers to total
locations sold as a percentage of total locations available for sale during
the period presented.

(9) Average advertising revenue per location sold is calculated by dividing
the revenues derived from all the locations sold by the number of locations
sold during the period presented.

Earnings Conference Call Details

AirMedia will hold a conference call to discuss the first quarter 2013
earnings at 8:00 PM U.S. Eastern Time on May 13, 2013 (5:00 PM U.S. Pacific
Time on May 13, 2013; 8:00 AM Beijing/Hong Kong time on May 14, 2013).
AirMedia's management team will be on the call to discuss financial results
and operational highlights and answer questions.

Conference Call Dial-in Information

U.S.: +1 866 519 4004
U.K.: 08082346646
Hong Kong: +852 800 930 346
International: +1 718 354 1231
Pass code: AMCN

A replay of the call will be available for 1 week between 11:00 p.m. on May
13, 2013 and 11:59 p.m. on May 20, 2013, Eastern Time.

Replay Dial-in Information

U.S.: +1 855 452 5696
International: +1 646 254 3697
Pass code: 68638854

Additionally, a live and archived webcast of this call will be available on
the Investor Relations section of AirMedia's corporate website at
http://ir.airmedia.net.cn

Use of Non-GAAP Financial Measures

AirMedia's management uses non-GAAP financial measures to gain an
understanding of AirMedia's comparative operating performance and future
prospects. AirMedia's non-GAAP financial measures exclude the following
non-cash items: (1) share-based compensation expenses, (2) amortization of
acquired intangible assets, (3) impairment of goodwill, and (4) impairment of
intangible assets.

Non-GAAP financial measures are used by AirMedia's management in their
financial and operating decision-making, because management believes they
reflect AirMedia's ongoing business and operating performance in a manner that
allows meaningful period-to-period comparisons. AirMedia's management believes
that these non-GAAP financial measures provide useful information to investors
and others in understanding and evaluating AirMedia's operating performance in
the same manner as management does, if they so choose. Specifically, AirMedia
believes the non-GAAP financial measures provide useful information to both
management and investors by excluding certain charges that the Company
believes are not indicative of its core operating results.

The non-GAAP financial measures have limitations. They do not include all
items of income and expense that affect AirMedia's income from operations.
Specifically, these non-GAAP financial measures are not prepared in accordance
with GAAP, may not be comparable to non-GAAP financial measures used by other
companies and, with respect to the non-GAAP financial measures that exclude
certain items under GAAP, do not reflect any benefit that such items may
confer to AirMedia. Management compensates for these limitations by also
considering AirMedia's financial results as determined in accordance with
GAAP. The presentation of this additional information is not meant to be
considered superior to, in isolation from or as a substitute for results
prepared in accordance with US GAAP. For more information on these non-GAAP
financial measures, please see the table captioned "Reconciliation of GAAP Net
(Loss) Income and EPS and Non-GAAP Adjusted Net (Loss) Income and EPS",
"Reconciliation of GAAP Operating Expenses to Non-GAAP Adjusted Operating
Expenses" and "Reconciliation of GAAP (Loss) Income from Operations to
Non-GAAP Adjusted (Loss) Income from Operations" set forth at the end of this
release.

About AirMedia Group Inc.

AirMedia Group Inc. (Nasdaq: AMCN) is a leading operator of out-of-home
advertising platforms in China targeting mid-to-high-end consumers. AirMedia
operates the largest digital media network in China dedicated to air travel
advertising. AirMedia operates digital frames in 33 major airports and digital
TV screens in 33 major airports, including most of the 30 largest airports in
China. In addition, AirMedia sells advertisements on the routes operated by
seven airlines, including the four largest airlines in China. In selected
major airports, AirMedia also operates traditional media platforms, such as
billboards and light boxes, and other digital media, such as mega LED screens.

In addition, AirMedia has obtained exclusive contractual concession rights
until the end of 2014 to develop and operate outdoor advertising platforms at
Sinopec's service stations located throughout China.

For more information about AirMedia, please visit http://www.airmedia.net.cn.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are
made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expect," "anticipate," "future,"
"intend," "plan," "believe," "estimate," "confident" and similar statements.
Among other things, the Business Outlook section and the quotations from
management in this announcement, as well as AirMedia Group Inc.'s strategic
and operational plans, contain forward-looking statements. AirMedia may also
make written or oral forward-looking statements in its reports to the U.S.
Securities and Exchange Commission, in its annual report to shareholders, in
press releases and other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that are not
historical facts, including statements about AirMedia's beliefs and
expectations, are forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties. A number of important factors could
cause actual results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties include, but are
not limited to: if advertisers or the viewing public do not accept, or lose
interest in, AirMedia's air travel advertising network, AirMedia may be unable
to generate sufficient cash flow from its operating activities and its
prospects and results of operations could be negatively affected; AirMedia
derives most of its revenues from the provision of air travel advertising
services, and any slowdown in the air travel advertising industry in China may
materially and adversely affect its revenues and results of operations;
AirMedia's strategy of expanding its advertising network by building new air
travel media platforms and expanding into traditional media in airports may
not succeed, and its failure to do so could materially reduce the
attractiveness of its network and harm its business, reputation and results of
operations; if AirMedia does not succeed in its expansion into gas station and
other outdoors media advertising, its future results of operations and growth
prospects may be materially and adversely affected; if AirMedia's customers
reduce their advertising spending or are unable to pay AirMedia in full, in
part or at all for a period of time due to an economic downturn in China
and/or elsewhere or for any other reason, AirMedia's revenues and results of
operations may be materially and adversely affected; AirMedia faces risks
related to health epidemics, which could materially and adversely affect air
travel and result in reduced demand for its advertising services or disrupt
its operations; if AirMedia is unable to retain existing concession rights
contracts or obtain new concession rights contracts on commercially
advantageous terms that allow it to operate its advertising platforms,
AirMedia may be unable to maintain or expand its network coverage and its
business and prospects may be harmed; a significant portion of AirMedia's
revenues has been derived from the six largest airports and four largest
airlines in China, and if any of these airports or airlines experiences a
material business disruption, AirMedia's ability to generate revenues and its
results of operations would be materially and adversely affected; AirMedia's
limited operating history makes it difficult to evaluate its future prospects
and results of operations; and other risks outlined in AirMedia's filings with
the U.S. Securities and Exchange Commission. AirMedia does not undertake any
obligation to update any forward-looking statement, except as required under
applicable law.

Investor Contact:

Raymond Huang
Senior Director of Investor Relations
AirMedia Group Inc.
Tel: +86-10-8460-8678
Email: ir@airmedia.net.cn



AirMedia Group Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars in thousands)
                                                    March 31, December 31,
                                                    2013      2012
ASSETS:
Current assets:
Cash                                               70,723    73,634
Restricted cash                                     8,050     8,026
Short-term investments                              42,185    44,622
Accounts receivable, net                            106,708   101,222
Prepaid concession fees                             24,340    20,759
Amount due from related party                       873       1,310
Other current assets                                13,964    9,788
Deferred tax assets - current                       1,840     2,064
Total current assets                                268,683   261,425
Property and equipment, net                         64,976    45,930
Long-term investments                               4,326     4,337
Long-term deposits                                  23,079    22,307
Deferred tax assets - non-current                   9,914     8,347
Acquired intangible assets, net                     1,331     1,521
Total assets                                        372,309   343,867
LIABILITIES AND EQUITY:
Current liabilities:
Accounts payable (including accounts payable of
the
 consolidated variable interest entities without
recourse to
 AirMedia Group Inc. $71,045 and $109,240 as of
December 31,
 2012 and March 31, 2013, respectively)            110,885   72,895
Accrued expenses and other current liabilities
 (including accrued expenses and other current
liabilities of
 the consolidated variable interest entities
without recourse
 to AirMedia Group Inc. $8,716 and $7,342 as of
December 31,
 2012 and March 31, 2013, respectively)            8,656     10,999
Deferred revenue (including deferred revenue of
the
 consolidated variable interest entities without
recourse to
 AirMedia Group Inc. $18,596 and $15,405 as of
December 31
 2012 and March 31, 2013, respectively)            15,536    18,602
Income tax payable (including income tax payable
of the
 consolidated variable interest entities without
recourse to
 AirMedia Group Inc. $169 and $ (240) as of
December 31,
 2012 and March 31, 2013, respectively)            150       1,109
Amounts due to related parties (including amounts
due to
 related parties of the consolidated variable
interest entities
 without recourse to AirMedia Group Inc. $447 and
$448 as
 of December 31, 2012 and March 31, 2013,          448       447
respectively)
Total current liabilities                           135,675   104,052
Deferred tax liability - non-current                333       380
Total liabilities                                   136,008   104,432
Equity
Ordinary shares                                     128       128
Additional paid-in capital                          278,932   278,652
Treasury stock                                      (7,717)   (7,035)
Statutory reserves                                  10,144    10,144
Accumulated deficits                                (76,561)  (72,961)
Accumulated other comprehensive income              33,694    32,948
Total AirMedia Group Inc.'s shareholders' equity    238,620   241,876
Noncontrolling interests                           (2,319)   (2,441)
Total equity                                        236,301   239,435
Total liabilities and equity                       372,309   343,867



AirMedia Group Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In U.S. dollars in thousands, except share and ADS
related data)
                                          Three Months Ended
                                          March 31,   December 31, March 31,
                                          2013        2012         2012
Revenues                                  64,547      84,182       67,544
Business tax and other sales tax          (935)       (1,535)      (1,400)
Net revenues                              63,612      82,647       66,144
Cost of revenues                          60,119      65,397       62,823
Gross profit                              3,493       17,250       3,321
Operating expenses:
 Selling and marketing *                 4,222       5,289        4,083
 General and administrative *            4,878       5,430        6,128
Total operating expenses                  9,100       10,719       10,211
(Loss) income from operations             (5,607)     6,531        (6,890)
Interest income                           388         402          259
Other income, net                         730         531          813
(Loss) income before income taxes       (4,489)     7,464        (5,818)
Income tax benefits (expenses)           1,043       (4,216)      (1,913)
Net (loss) income before net (loss)       (3,446)     3,248        (7,731)
income of equity method investments
Net (loss) income of equity method        (24)        (26)         103
investments
Net (loss) income                         (3,470)     3,222        (7,628)
Less: Net income (loss) attributable to  130         (132)        (301)
noncontrolling interests
Net (loss) income attributable to        (3,600)     3,354        (7,327)
AirMedia Group Inc.'s shareholders
Net (loss) income attributable to
AirMedia Group Inc.'s shareholders per
ordinary share
Basic                                     (0.03)      0.03         (0.06)
Diluted                                   (0.03)      0.03         (0.06)
Net (loss) income attributable to
AirMedia Group Inc.'s shareholders per
ADS
Basic                                     (0.06)      0.05         (0.12)
Diluted                                   (0.06)      0.05         (0.12)
Weighted average ordinary shares
outstanding used in computing net        121,738,551 122,551,330  125,241,217
(loss) income per ordinary share -
basic
Weighted average ordinary shares
outstanding used in computing net        121,738,551 122,575,370  125,241,217
(loss) income per ordinary share -
diluted
* Share-based compensation charges
included are as follow:
 Selling and marketing                  -           91           297
 General and administrative             280         713          695



AirMedia Group Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In U.S. dollars in thousands, except share and ADS related data)
                                              Three Months Ended
                                              March 31, December 31, March 31,
                                              2013      2012         2012
Net (loss) income                            (3,470)   3,222        (7,628)
Other comprehensive income (loss)             739       2,002        (151)
Comprehensive (loss) income                   (2,731)   5,224        (7,779)
Less: comprehensive income (loss)             123       (205)        (300)
attributable to the noncontrolling interest
Comprehensive (loss) income attributable to   (2,854)   5,429        (7,479)
AirMedia Group Inc.'s shareholders



AirMedia Group Inc.
RECONCILIATION OF GAAP NET (LOSS) INCOME AND EPS TO NON-GAAP ADJUSTED
NET(LOSS) INCOME AND EPS
(In U.S. dollars in thousands, except share and ADS related data)
                                    Three Months Ended
                                    March 31,      December 31,   March 31,
                                    2013           2012           2012
Net (loss) income attributable
to AirMedia Group Inc.'s            (3,600)        3,354          (7,327)
shareholders (GAAP)
Amortization of acquired            195            194            905
intangible assets
Share-based compensation            280            804            992
Adjusted net (loss) income
attributable to AirMedia Group      (3,125)        4,352          (5,430)
Inc.'s shareholders (non-GAAP)
Adjusted net (loss) income
attributable to AirMedia Group
Inc.'s shareholders per share
(non-GAAP)
Basic                              (0.03)         0.04           (0.04)
Diluted                            (0.03)         0.04           (0.04)
Adjusted net (loss) income
attributable to AirMedia Group
Inc.'s shareholders per ADS
(non-GAAP)
Basic                              (0.05)         0.07           (0.09)
Diluted                            (0.05)         0.07           (0.09)
Shares used in computing
adjusted basic net (loss)
income attributable to              121,738,551    122,551,330    125,241,217
AirMedia Group Inc.'s
shareholders per share
(non-GAAP)
Shares used in computing
adjusted diluted net (loss)
income attributable to              121,738,551    122,575,370    125,241,217
AirMedia Group Inc.'s
shareholders per share
(non-GAAP)
Note: 1) The Non-GAAP adjusted net (loss) income per share and per ADS are
computed using Non-GAAP adjusted net (loss) income and number of shares and
ADSs used in GAAP basic and diluted EPS calculation, where the number of
shares and ADSs is adjusted for dilution due to the share-based compensation
plan.
AirMedia Group Inc.
RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP ADJUSTED OPERATING
EXPENSES
(In U.S. dollars in thousands, except for
percentages)
                                    Three Months Ended
                                    March 31,      December 31,   March 31,
                                    2013           2012           2012
Operating expenses (GAAP)           9,100          10,719         10,211
Amortization of acquired            195            194            905
intangible assets
Share-based compensation            280            804            992
Adjusted operating expenses         8,625          9,721          8,314
(non-GAAP)
Adjusted operating expenses as
a percentage of net revenues        13.6%          11.8%          12.6%
(non-GAAP)
AirMedia Group Inc.
RECONCILIATION OF GAAP (LOSS) INCOME FROM OPERATIONS TO NON-GAAP ADJUSTED
(LOSS) INCOME FROM OPERATIONS
(In U.S. dollars in thousands, except for
percentages)
                                    Three Months Ended
                                    March 31,      December 31,   March 31,
                                    2013           2012           2012
(Loss) Income from operations      (5,607)        6,531          (6,890)
Amortization of acquired            195            194            905
intangible assets
Share-based compensation            280            804            992
Adjusted (loss) income from         (5,132)        7,529          (4,993)
operations (non-GAAP)
Adjusted operating margin           -8.1%          9.1%           -7.5%
(non-GAAP)

SOURCE AirMedia Group Inc.

Website: http://www.airmedia.net.cn