Key Developments For VisionChina Media Inc.
VisionChina Media Inc. (VISN.O) (Consolidated Issue listed on NASDAQ Global Market)
VisionChina Media Inc Reiterates FY 2009 Guidance
VisionChina Media Inc reiterated fiscal 2009 guidance and expects total revenues to range from $121 to $124 million. The Company expects net income attributable to VisionChina Media's shareholders for fiscal 2009, excluding share-based compensation expenses and amortization of intangible assets (non-GAAP), to be between $31.0 and $33.0 million. According to Reuters Estimates, analysts on an average are expecting the Company to report revenue of $123 million for the same period.
VisionChina Media Inc Announces Contract Renewal
VisionChina Media Inc announced the renewal and extension of its exclusive contract with Hangzhou New & Mobile Media to continue operation of the Company's mobile digital television advertising network on buses and ferries in Hangzhou, the capital city of China'sZhejiang province. The new three-year contract will commence on January 1, 2010, and grants VisionChina the exclusive right to operate mobile television advertising on all public buses and ferries covered by the mobile television network operated by Hangzhou New & Mobile Media.
VisionChina Media Inc Signs Contract With Xiamen TV Digital Media Co., Ltd.
VisionChina Media Inc announced that it has signed an agreement expanding its network coverage to include Xiamen, a city of 2.5 million residents. The three year agreement went into effect on October 1, 2009 and grants VisionChina the right to sell a minimum of 100 advertising minutes per day to non Xiamen based national advertisers during 18 hours of daily programming supplied by Xiamen TV Digital Media Co. Ltd.
VisionChina Media Inc To Acquire Digital Media Group For USD160 Million
VisionChina Media Inc announced an agreement to acquire Digital Media Group (DMG), a China's subway mobile television advertising market. The total consideration for the transaction is USD160 million in cash and shares payable by the Company to eligible shareholders of DMG in three installments over two years including the first installment of USD100 million payable at the closing of the transaction. Two subsequent installments of USD30 million each will be paid on the first and second anniversaries, respectively, of the closing of the transaction. Of the initial USD100 million, USD40 million will be paid in cash and USD60 million will be paid in shares. The transaction has been approved by both companies' Boards of Directors and is expected to close in the first quarter of 2010. Upon closing, the combined company will operate bus networks in 18 of China's most affluent cities, including Beijing, Guangzhou and Shenzhen. The combined company will also have exclusive subway networks in eight key cities in China, including all four of China's Tier I cities, Beijing, Guangzhou, Shenzhen and Shanghai, as well as on Hong Kong's Airport Express line.
VisionChina Media Inc Issues Q3 2009 Guidance Below Analysts' Estimates; Lowers FY 2009 Guidance
VisionChina Media Inc announced that for the third quarter of 2009 it expects total revenues to range from $30.7 to $32.1 million and net income attributable to VisionChina Media's shareholders excluding share-based compensation expenses and amortization of intangible assets (non-GAAP) is expected to be between $7.5 and $8.3 million. The Company revised its estimates for fiscal 2009 and now expects total revenues to range from $121 to $124 million. The Company expects net income attributable to VisionChina Media's shareholders for fiscal 2009, excluding share-based compensation expenses and amortization of intangible assets (non-GAAP), to be between $31.0 and $33.0 million. According to Reuters Estimates, analysts on an average were expecting the Company to report net profit of $15.2 million on revenue of $36.2 million for the third quarter of 2009; net income of $48.4 million on revenue of $135 million for fiscal 2009.
