Charm Communications Inc. (NASDAQ: CHRM) ("Charm" or the "Company"), a leading advertising agency in China, today announced its unaudited financial results for the third quarter ended September 30, 2011.
Third quarter 2011 Highlights
* Revenues in the third quarter of 2011 grew 45.0% year over year to $70.2 million
* Revenues for Charm's advertising agency business grew 46.2% year over year to $9.3 million in the third quarter of 2011
* Revenues for Charm's media investment management business grew 45.4% year over year to $59.6 million in the third quarter of 2011
* Revenues for Charm's branding and identity services business grew 25.0% year over year to $1.4 million in the third quarter of 2011
* Gross profit for the third quarter of 2011 grew 19.7% year over year to $22.5 million
* Net income for the third quarter of 2011 grew 18.5% year over year to $13.2 million
* Non-GAAP net income, which excludes share-based compensation expenses, amortization of intangible assets and impairment on investments, grew 20.9% year over year to $14.2 million in the third quarter of 2011
* Basic net income per ADS for the third quarter of 2011 was $0.32, compared to $0.28 for the third quarter of 2010 and $0.28 for the second quarter of 2011
* Cash flow from operations was positive for the third quarter of 2011, with cash and cash equivalents of $136.2 million as of September 30, 2011
* Charm had 687 employees as of September 30, 2011, compared to 580 as of June 30, 2011
"As we head towards the end of 2011, we continue to see Chinese advertisers placing more strategic emphasis on brand development through integrated advertising campaigns to increase their competitiveness in the marketplace. As a result, advertisers are becoming more sophisticated with their media placements, becoming more diligent with their budgets and beginning to focus more on their return on investment," said Mr. He Dang, founder, chairman and chief executive officer of Charm.
Mr. Dang continued, "We have continued to strengthen our integrated advertising capabilities by leveraging our leadership position in television and by making strategic investments in digital areas. With the closing of the ClickPro acquisition in September, we enhanced a key service on our platform, search engine and performance marketing, which further strengthens our ability to deliver integrated campaigns to our clients. I am also proud to say that in the third quarter, internet-related revenues accounted for more than 20% of our advertising agency revenues, representing a significant increase from 13% in the second quarter.
"As we start making preparations for next year, we remain optimistic about the general advertising market despite the recent macro challenges facing the global economy. The upcoming CCTV primetime auction, which will take place on November 8th, should provide further guidance on advertiser confidence heading into 2012," Mr. Dang concluded.
Mr. Wei Zhou, Charm's chief financial officer, added, "We delivered solid results in the third quarter, achieving the high-end of our guidance for both revenue and non-GAAP net income. We will continue to accelerate our investments in strategic areas, overall infrastructure and talent acquisition and retention to drive the long-term growth of our business."
Source:21cbh.com