AirMedia Group Inc (ADR) (NASDAQ:AMCN) Loses Investor’s Confidence
AirMedia Group Inc (ADR) (NASDAQ:AMCN) which is a China based company which offers outdoor marketing services to its clients reported on 5th March, after market close, its results from 4Q and full year operations. The revenue drop of 5 percent reported for the FY13 operations in addition to sales, in comparison to same period last year led to huge deficit in investor confidence in the stock. This weakness in the investor interest in the stock culminated in a huge 18 percent sell off on 15th March, sending the stock 24 percent down in a 5 day trading span.
Full Year Operations Show Decline
Revenue for FY13 was down 5.6% to hit $276.5 million. The reason for the dip was linked to the closing down of unprofitable business and a big change in the tax structure in its biggest operating market of China. Net loss from operations for the full year came in at $10.6 million which translated into a 18 cents loss per share of ADR.
Turn Around Effective In 4Q
For the fourth quarter, the revenue jumped 13.8 percent to reach $78.6 million as against the $69 million it had reported in 4Q12. Its biggest revenue drop was seen in the revenue it used to derive from “Digital TV screens on airplanes” which saw a huge dip of 41.1 percent.
CEO Points To The Silver Lining
Trying to stem the steady flow of investors getting out of the stock, AirMedia Group Inc (ADR) (NASDAQ:AMCN) Chairman of the Board and Chief Executive Officer Herman Man Guo has been quoted to have pointed out in his post earnings announcement call, that “in the fourth quarter of 2013, our total revenues increased by 13.8% quarter over quarter to $78.6 million. We became profitable again, with net income attributable to our shareholders in the amount of $1.5 million. With our turnaround strategy and new business initiatives, I expect the 2014 to be a year of growth”.