China's Focus Media sees 4Q profit miss Street
NEW YORK (AP) — Focus Media Holding Ltd., a flat-panel screen advertising network that operates in elevators and office buildings in China, said Monday that its fourth-quarter net profit more than doubled despite a slight revenue decline, as it didn't repeat an investment loss from a year ago.
The adjusted earnings were below the expectations of analysts.
The company also set a special shareholders meeting on April 29 to vote on the plan it announced in December to be acquired by Giovanna Parent Ltd. for $27.50 per American depositary share and go private.
U.S.-listed shares fell 46 cents, or 1.7 percent, to $26.22 in after-hours trading, after gaining 53 cents, or 2 percent, to close at $26.68 in the regular session.
Net income in the three months to Dec. 31 came to $76.7 million, or 57 cents per ADS, compared to $37.1 million, or 27 cents per ADS.
A year earlier, the company booked a loss of $38.9 million due to its investment in VisionChina.
Excluding expenses for paying executives with stock and other items, earnings came to 71 cents per share, below the 75 cents expected by analysts polled by FactSet.
Revenue fell 1 percent to $250.2 million from $252.7 million a year ago. Analysts expected revenue of $249.1 million.
CEO Jason Jiang said the company's results were in-line with its expectations but said the company continues to be affected by "slower overall advertising spending in China."