Beijing, 24th February: Xinhua Finance Media (XFML) released its full year results this week. Revenues for the year ending 31st December 2008 jumped 38% to US$186 million compared with US$135 million in 2007. Advertising services revenues accounted for more than US$107 million or 58% of total revenues. XFML recorded a net loss of US$285 million compared with a net profit of US$28 million in 2007.

Fredy Bush, XFML’s CEO said, “The recent economic downturn has turned out to be much more severe than we had originally expected. 2008 was an eventful year in China, with the snow storms in Q1, earthquakes in Q2, Olympics in Q3 and the economic turmoil in Q4 all impacting the media sector. This seems to have set the stage for a challenging environment ahead in 2009. In anticipation of this, we are utilizing our resources more efficiently for cost containment and reduction of overhead expenses throughout this year.”

XFML simultaneously released its fourth quarter results this week. Revenues for the quarter increased slightly rising to US$49 million from US$48 million in 2007. Also in the fourth quarter, XFML recorded a net loss of US$251 million compared with a net profit of US$4.2 million in the same quarter last year.

Source: XFMedia press release

BIIA Newsletter March 2009 Issue