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HONG KONG, May 16 /Xinhua-PRNewswire-FirstCall/
-- China Digital Media Corporation (OTC Bulletin Board: CDGT), a
leading provider of cable and digital television services, advertising
services and contents in China, announced today record quarterly
revenue results for its first quarter ended March 31, 2006.
Financial Highlights for the Three Months Ended
March 31, 2006 Compared to the Three Months Ended March 31, 2005:
* Revenue increased 272% to $3.7 million from $1.0
million
* Net income before tax improved 65% to $734,000 from $438,000
* Net Income grew 1.5% to $445,000 from $438,000
The strong revenue growth in the 2006 first quarter
was primarily due to the increase in number of TV subscribers, subscriptions
of value added services from digital TV services and additional
revenue stream from advertising agent services. Of the revenue increase,
$1.7 million was earned from the Company's television advertising
agent services which business was not present during the comparable
quarter in 2005. Gross profit margin is 48% during the three months
ended March 31, 2006 due to the Company's television advertising
agent services which have lower margins than the Company's cable
television business.
'We are pleased to begin the year in such a strong
fashion as new advertising business contributed significantly to
the results for the quarter,' said Daniel Ng, Chairman and CEO of
China Digital Media Corporation. 'Success of our new subsidiary
in advertising has strengthened our confidence to increase our focus
in this area,' said Mr. Ng. 'In the coming years, we believe that
our two joint ventures with a provincial TV station will allow us
to grow faster and further.'
Recently, the Company announced plans to deploy
a new IP based STB in Nanhai where the new IP based STB equips with
a JAVA platform with an Ethernet port. The new IP based STB allows
the Company to provide additional value added services to its subscribers
when products are available such as targeted advertising and interactive
TV programs.
For more information on the Company, please visit
the Company's website at http://www.chinadigimedia.com
.
To be added to China Digital Media's investor e-mail
list, please send e- mail to our Investors Relations at ir@chinadigimedia.com
.
About China Digital Media Corporation
China Digital Media Corporation focuses its business
in three main areas: Cable TV Operations, Programs Production and
Advertising Sales. Arcotect Technology (GZ) Limited, a wholly owned
subsidiary of CDGT in China, is the sole contractor and operator
of digital television services in Nanhai, a city with 400,000 cable
TV subscribers. As of today, Nanhai's cable television operation
provides 148 television channels which comprises of 48 basic channels
and 100 pay channels. The pay channels are categorized into various
value added packages.
Certain information contained in these materials
is 'forward-looking' information, such as projections, estimates,
pro formas, or statements of intentions, expectations or plans.
Forward-looking information in this release includes, without limitation,
the future success of the Company's advertising business and of
the Company's joint ventures, the Company's ability to grow and
generate new sources of revenues from its IP STB in the future and
its ability to keep its IP STB technologically current. All forward-looking
information is subject to known and unknown risks and uncertainties,
many of which are outside of the control of the company. Consequently,
actual results may, and probably will, differ materially from the
results contemplated in such forward-looking information. For more
information, please contact:
For more information, please contact:
Investor Relations
Tel: +852-2390-8600
or
Ed Lewis of CEOcast, Inc.
Tel: +1-212-732-4300
SOURCE China Digital Media
Corporation
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