Editorial Summary

Beijing-based airport and in-flight digital screen advertiser AirMedia Group Inc. (Nasdaq: AMCN) reported first quarter results after market close on Wednesday. Total revenues increased 162.4 percent year-on-year and 32.6 percent quarter-on-quarter to $21.6 million. Net income was up 288.7 percent year-on-year and 18.8 percent from the previous quarter to $7.3 million. AirMedia expects second quarter 2008 revenue to come in between $26 million and $28 million.

Revenues from airplane-based digital TV screens grew 111.4 percent year-on-year and fell 6.3 percent quarter-on-quarter to $3.9 million, while the average advertising revenue per time slot sold (ASP) increased 63.3 percent annually and 6.1 percent sequentially to $15,873. Revenues from airport-based digital frames were up 431.0 percent sequentially to $6.7 million, with the ASP up 60.2 percent quarter-on-quarter to $15,769.

AirMedia had installed 1,213 digital frames in 16 airports by the end of the quarter. The company began selling digital frame advertisements in five new airports (Chongqing, Nanjing, Haikou, Zhengzhou and Ningbo) in April and seven airports (Kunming, Hangzhou, Wuhan, Changsha, Jinan, Tianjin and Hefei) in early May. AirMedia changed its advertising cycle from 20- to 10-minute cycles for 46-to-50-inch digital frames in all airports excluding Beijing Capital during the quarter.