China MediaExpress Holdings Inc. operates the largest television advertising network on inter-city and airport express buses in China. It generates revenues by selling advertisements on its network of television displays installed on over 22,700 express buses originating in fifteen of China’s most prosperous regions. These regions include the cities of Shanghai and Beijing.
The company recently announced that based on the latest developments – including its expanded geographic coverage, increased number of inter-city buses and higher margins from the airport express buses platform – it is revising its 2010 net income guidance. The revised guidance calls for 2010 net income to be in the range of $82-$85 million, on a non-GAAP basis. This is compared to the initial 2010 net income guidance of $71-$75 million.
China MediaExpress expects to continue to benefit from China’s continuing rapid increase in advertising spending. China is projected to remain as one of the fastest growing advertising markets in the world. This forecast is based on China’s sustained economic growth, and increases in disposable income and domestic consumption. According to the World Bank, the global middle class will grow from 430 million in 2000 to 1.15 billion by the year 2030. China alone will account for 52 percent of that increase.
This bodes well for the future of ChinaMediaExpress as it plans to grow right along with the market. The company’s chief financial officer, Jacky Lam, said, “We plan to continue to grow our business organically and we are also actively looking for acquisition opportunities within our core business platform.” Mr. Lam added that the company is currently working to finalize several new projects to add to its bottom line.