China Mass Media (CMM) Loses CCTV Contract; Sees Significant Impact on FY12 Results
Tweet
Share
E-mailGet Alerts CMM Hot Sheet
Join SI Premium – FREE
China Mass Media Corp. (NYSE: CMM) announced today that its three-year advertising agency contracts with China Central Television ("CCTV") for the "Daytime Advertising Package" and "Television Guides" program shall not be renewed at their expiration on December 31, 2011.
Consistent with CCTV's current practice, 2012 advertising rights for the "Daytime Advertising Package" were offered for bidding at the non-prime time advertising auction event held by CCTV on November 22, 2011, and the Company did not secure the winning bid. CCTV has also decided to cancel the "Television Guides" program at the end of 2011.
For the years ended December 31, 2009 and 2010 and the nine months ended September 30, 2011, revenues generated from these two programs amounted to RMB158.8 million, RMB109.0 million, and RMB68.9 million, representing 37.1%, 42.5%, and 40.5% of the Company revenues in those periods, respectively. The loss of revenues from the Daytime Advertising Package and Television Guides program is expected to have a significant impact on the Company's results of operations in 2012.
Consistent with CCTV's current practice, 2012 advertising rights for the "Daytime Advertising Package" were offered for bidding at the non-prime time advertising auction event held by CCTV on November 22, 2011, and the Company did not secure the winning bid. CCTV has also decided to cancel the "Television Guides" program at the end of 2011.
For the years ended December 31, 2009 and 2010 and the nine months ended September 30, 2011, revenues generated from these two programs amounted to RMB158.8 million, RMB109.0 million, and RMB68.9 million, representing 37.1%, 42.5%, and 40.5% of the Company revenues in those periods, respectively. The loss of revenues from the Daytime Advertising Package and Television Guides program is expected to have a significant impact on the Company's results of operations in 2012.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Marvell Technology (MRVL) Tops Q2 EPS by 1c, Offers Guidance
- The Gap, Inc. (GAP) Tops Q2 EPS by 3c
- Yum! Brands adds Bratspies to board committee
Create E-mail Alert Related Categories
Corporate News, Guidance, Hot GuidanceSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
