The annual results document summarizes Clear Media's financial performance in 2011. In 3 sentences:
Clear Media reported increased revenue of 18% to HK$1,486 million in 2011 compared to 2010, with a 16% increase in EBITDA to HK$547 million and a 21% increase in EBIT to HK$275 million. Revenue growth was driven by increases in all major cities including Beijing, Guangzhou and Shanghai as well as mid-tier cities, while costs increased primarily due to higher rental, maintenance, and sales & cultural tax expenses.
2. Forward-looking statements
This presentation and subsequent discussion may contain
certain forward-looking statements with respect to the
financial condition, results of operations and business of
Clear Media. These forward-looking statements
represent Clear Mediaโs expectations or beliefs
concerning future events and involving known and
unknown risks and uncertainties which could cause actual
results, performance or events to differ materially from
those expressed or implied in such statements.
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9. Costs & Expenses
(HK$โM) FY10 FY11 YoY%
Rental 308 360 +17%
Maintenance 100 127 +27%
Electricity 51 56 +10%
Sales & Cultural Tax 101 126 +25%
Direct operating costs 560 669 +19%
S, G & A & other expenses 249* 270 +8%
Total costs & expenses, 809 939 +16%
excluding depreciation & amortization
*Exclude Share Option Expense Adjustment booked in FY10
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10. Trade Receivables
(HK$โM) Dec 31, 2010 Jun 30, 2011 Dec 31, 2011
Current โ 90 days 221 294 281
91 โ 180 days 135 132 200
Over 180 days 128 144 74
484 570 555
Less: provision for impairment (39) (40) (40)
3rd party receivables 445 530 515
Turnover days (time wt. avg.) 119 days 119 days 106 days
Due from GWH 142 158 134
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11. Increase in Cash Flows
(HK$โM) FY10 FY11 YoY%
Net cash flows from operating activities 478 649 +36%
Net cash flows used in investing activities (244) (347) +42%
Net cash flows from financing activities 16 - -100%
Net increase in cash & cash equivalents 250 302 +20%
Net cash & cash equivalents
at the beginning of period 421 671 -
at the end of year 671 973 +45%
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13. FY11 Highlights
China domestic consumption growth continued despite
Challenging global economic environment
Government measures to curb property prices & inflation
This growth was helped by
Urbanization
Rising general income
Brands from Greater China Region increased ad spend
Some advertisers expand into 2nd & 3rd tier cities
High competitive pressure in Shanghai post World Expo
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14. FY11 Business Performance by Location
Total revenue from tier-one cities up 17% YoY to HK$747 million
BJ: Revenue +25% with improvement on both ASP to
occupancy rate
GZ: Revenue +26% with inventory increase, improvement on
both ASP & occupancy rate
SH: Revenue +30% with Shanghai World Expo in FY10
Revenue -4% in FY11 without major event
Mid-tier cities: Revenue up 15% to HK$614 million
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15. Revenue By Industry
FY10 FY11
Beverages 17% 20%
Food 16% 13%
Telecommunications 13% 11%
IT 3% 10%
Entertainment 8% 10%
Fashion & ornaments 7% 8%
Realty 6% 6%
Business/Consumer services 6% 5%
Health products 5% 5%
Cosmetics & Toiletries 6% 3%
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16. FY12 Outlook
Cautious about
Global economic environment
Tightening effect of government measures on
advertising industry
Long-term prospects remain positive
Further optimize ASP & occupancy rate
Broaden initiatives to raise cleaning & maintenance
standards to maintain premium pricing position
Enhance centralized inventory management system
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17. FY12 Outlook (contโd)
Utilize cash on hand to
Expand bus shelter network
โข Organic buildout
โข Third-party leasing
โข Acquisitions
Deploy new display and interactive technology at the
right time
Explore complementary advertising formats & segments
to widen our advertising footprint profitably
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