ChinaVision Media announces 2012 interim results

Louise Duffy | 22-08-2012

ChinaVision Media has released its interim results for the six months ended 30 June 2012.

Turnover was HK$523,163,000 in the first half of 2012 (compared with HK$97,012,000 in the same period of 2011), mainly attributable to income and profit contribution from the television drama business and satisfactory growth in mobile TV business.

Net profit was HK$102,261,000 (compared with a loss of HK$64,092,000 in the same period of 2011).

During the period under review, the company reported substantial growth in turnover and executed a successful business turnaround. This was mainly attributable to the greater synergies among all its businesses after the merger with China Entertainment Media Group (CEMG). In particular, the television drama business recorded a promising sales revenue and profit contribution.

The group's turnover rose to approximately HK$523,163,000 (2011 1H: HK$97,012,000). Gross profit increased to HK$202,841,000 over the last corresponding period (2011 1H: Gross loss HK$5,967,000). Net profit attributable to owners of the company was HK$102,261,000 (2011 1H: loss of HK$64,092,000). Basic earnings per share (basic and diluted) was HK1.40 cents (2011 1H: loss per share was HK1.27 cents).

The Group completed the acquisition of the entire issued share capital of CEMG on 31 January 2012 and the integration of the two groups has proceeded smoothly. CEMG is a fast-growing media entertainment company principally engaged in the business of movies, television drama series and television advertising.

Subsequent to the completion of the transaction, the two media groups had collaboratively produced and distributed television drama series. The enlarged group then promoted these dramas through diversified delivery platforms such as print media and mobile new media, and this business recorded a satisfactory revenue. During the period under review, the revenue contribution from production and distribution of television dramas substantially jumped to HK$252,685,000, equivalent to over 48% of the group's total turnover, with a satisfactory segmental profit of HK$93,164,000 recorded.

Dong Ping, chairman of ChinaVision, said: "We are very pleased to see that the group's business recorded substantial improvement during the period under review. This was mainly attributable to the group's efforts in implementing changes in different business and actively enhancing its core business in the first half of 2012.

"We have also completed the acquisition of the entire issued share capital in CEMG in late January this year, expanding the group's scale of operations and opening a new chapter in our development history. The merger with CEMG has enabled us to optimise our business chain and become one of the few large media groups with both the ability to produce and develop quality content and promote and operate various media channels."