Tiger Media Posts 6 Month Results
Sep 12, 2013 (Close-Up Media via COMTEX) --
Tiger Media, Inc., a multi-platform media company, reported unaudited financial results for the six months ended June 30.
In a release on September 9, the Company reported that revenue amounts were $0.1 million in the first six months of 2013, almost all of which is attributable to the launch, in late June 2013, related to our new luxury shopping mall LCD and outdoor billboard businesses in Shanghai. As noted below, we expect revenue amounts to rise significantly as the build out and implementation of our network continues.
Gross loss was $0.2 million as a result of the expense of advertising space lease costs and depreciation expenses by LCD equipment.
Total operating expenses for the first six months of 2013 were $2.0 million, which is primarily related to business development, promotion of new LCD market opportunities and professional fees, resulting in an operating loss of $2.3 million.
As of June 30, the Company had $4.0 million in cash and cash equivalents. Stockholder equity was approximately $7.1 million and there were approximately 32.2 million common shares outstanding.
As a result of our disposal of Zhejiang Continental, Shenyang Jingli, Qingdao Kaixiang, Wuxi Ruizhong and the divestiture of SearchMedia International and its subsidiaries in 2012, we have not included comparison periods in the unaudited financial results included in this release, as the comparison periods are not relevant.
Peter W. H. Tan, Chief Executive Officer of Tiger Media, stated, " As a result of earlier than planned divestment of the Company's legacy business at the end of 2012 for the purpose of elimination of significant liabilities, coupled with one quarter's delay in the Mall Outdoor LCD installations due to procurement and sourcing disruptions, we unfortunately have a six month gap in recognizing revenue. However, our Mall Outdoor LCD network has had strong results since its official launch at the end of June 2013 and we expect to complete the full installation of our LCD screens in 23 malls in Shanghai by September 2013."
Steve Ye, Chief Financial Officer of Tiger Media added: "Since the launch in late June 2013 of our LCD business, we have successfully signed $2.1 million in advertisement contracts for the network from major domestic and international advertisers, including a significant contract from a leading international beverage company.
Tan further commented: "The $2.1 million in sales contracts achieved within two months of launching this new media concession highlight the attractiveness of our concession and the significant scalability of this new media platform in just Shanghai. We also have a very rich sales pipeline and upcoming contracted campaigns encompass top international consumer brands and numerous luxury brands which include a European automobile manufacturer, a premium clothing line and a leading cosmetic brand.
In anticipation of the completion of the Shanghai Mall Outdoor LCD roll out, we have already embarked on the development of the Beijing and Guangzhou Mall Outdoor LCD network as we expect similar scalability of the Shanghai prototype. In addition, we have several other strategic concessions in progress and will now focus on a more aggressive acquisition strategy that could create additional long-term revenue opportunities, strengthen and diversify our offerings in China's media sector, deepen our national presence and further enhance shareholder value."
Stephen Zhu, COO of Shanghai operations, further remarked: "We are not a traditional media company. We intend to invest heavily into the latest technologies for new and creative media, and intend to revolutionize traditional digital outdoor advertising by incorporating O2O (Online to Offline) business models. Our interactive LCD screens will not only air advertisements but can convert consumers into shoppers with promotions that drive sales and store traffic. In addition, the interactive screens also provide advertisers with vital market intelligence on consumer preference and purchasing behaviors. Our LCD screens can thus provide significant values to both advertisers and consumers. Some interactive features on our LCD screens in consideration include AR (augmented reality), Wechat & Microblog interaction, mobile handset with NFC (near field communication) and other features."
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