Stocks to Watch – AirMedia Group Inc. – ADR (AMCN)

Stocks to Watch – AirMedia Group Inc. (ADR) (NASDAQ: AMCN)

Airmedia Group Inc. is a holding company. Its operations are conducted through its subsidiaries, consolidated variable interest entities and the variable interest entities’ subsidiaries in the People’s Republic of China. It was established on April 12, 2007 and operates the digital media network in the People’s Republic of China. The Company is focused on air travel advertising. By the year 2011, the Company has already operated digital frames in 34 airports and digital television screens in 37 airports.

It operates a network of digital frames situated in strategic areas such as airports, departure halls, terminals and arrival halls. These frames are high-definition liquid crystal display (LCD) screens, which change digital picture displays approximately every 12 seconds. The frames involve standalone digital frames and television-attached digital frames.

The Company also produced television-attached digital frames consist of a vertical digital frame beneath a digital television screen and are in sizes ranging from 47 to 55 inches. By the year 2011, it operated 3,424 digital frames in 34 airports with the following statistics:

• 1,371 of which were standalone digital frames
• 108-inch LCD display screens and light emitting diodes (LED) screens
• 2,053 were television-attached digital frames.

The Company’s airport programs are composed of advertising and non-advertising content and are played for approximately 16 hours per day. By 2011, the Company’s programs were situated on digital TV screens on routes operated by eight airlines. The displays on the network airplanes were installed by the aircraft manufacturers. These are all located at the top of passenger compartments and on the back of passenger seats.

The programs are played once for approximately 45 minutes to an hour per flight. Its traditional media in airports involve light boxes and billboards in airports and billboards and painted advertisements on gate bridges in airports. It actually operated 588 light boxes and billboards in 2011. These are found in Beijing Capital International Airport, Shenzhen International Airport and Wenzhou Yongqiang Airport.

It also operated 240 billboard advertisements and 46 painted advertisements on the gate bridges mainly located in seven airports. It has logos various display equipment found in airports for which it charges advertising fees. Moreover, it also operated 98 sets of 17-inch crystal TV screens on shuttle buses in Shanghai Pudong International and Shanghai Hongqiao airports.

AirMedia Group Inc. (ADR) (NASDAQ: AMCN) 52 week: 2.10 – 5.00   Mkt cap: 195.43M   Shares:  64.50M