BEIJING, Nov. 17 /Xinhua-PRNewswire-FirstCall/ -- Xinhua Finance
Media Limited ("XFMedia" or "the Company"; Nasdaq: XFML), a leading
media group in China, today announced its unaudited financial
results for the third quarter ended September 30, 2008. Third
Quarter 2008 Highlights -- Steady revenue growth up 25% year over
year in the midst of a challenging operating environment. --
Broadcast business continues to contribute the highest growth of
68% year over year and 30% quarter over quarter. -- Company
provides fourth quarter guidance and revises full year guidance.
Ms. Fredy Bush, Chief Executive Officer, commented, "Our Broadcast
business proceeds to contribute the largest growth as well as the
highest margins. We continue to sharpen our focus toward exclusive
sports programs and the proper access to showcase this programming.
The China media industry is still very fragmented and nascent, but
there is a significant and growing demand for a broad range of
quality American sports programs. In China, to be successful, one
must have both the programs and access. Programming is becoming
king and access as key." Ms. Bush added, "During the quarter, as
the Beijing Olympics took place, it was especially challenging for
most of the non-official Olympic media and non-Olympic sponsors.
The recent global economic downturn poses further challenges, and
we will not be immune to the impact of these circumstances.
However, by leveraging our strong, fundamental platform, we
continue to integrate ourselves to achieve streamlined cost savings
across our various operating units." Third Quarter 2008 Financial
Results The following is a summary of our financial results for the
third quarter of 2008: Chart 1: Summary of financial results 3
months 3 months 3 months 08Q3 vs 08Q3 vs ended ended ended 07Q3
08Q2 Sep, 30 Sep, 30 Jun, 30 growth growth 2008 2007 2008 % % In US
millions Net revenue 51.1 40.7 48.9 25% 4% Adjusted EBITDA(1) 9.5
10.3 10.7 -8% -11% Net income (loss) (15.9) 9.0 0.8 N/A N/A Net
income (loss) per ADS - diluted(2) ($0.24) $0.13 -- N/A N/A
Adjusted net income(1) 7.4 12.3 7.6 -40% -3% Adjusted net income
per ADS - diluted(2) $0.10 $0.17 $0.10 -41% 0% 1. Please refer to
Chart 8 for a detailed calculation of adjusted EBITDA and adjusted
net income. 2. Please refer to Chart 9 for weighted average number
of ADS on a diluted basis. Net Revenue Net revenue for the third
quarter of 2008 was $51.1 million, up 25% year- over-year from
$40.7 million in the third quarter of 2007, or up 4% sequentially
from $48.9 million in the second quarter of 2008. Net Revenue by
business group The following is a summary of net revenue by
business group for the third quarter of 2008. Chart 2: Revenue
breakdown by type and business group In US millions Advertising
Broadcast Print Total Net revenue: Advertising services 24.1 3.3
0.1 27.5 Content production -- 7.8 -- 7.8 Advertising sales 5.9 7.0
2.8 15.7 Publishing services -- -- 0.1 0.1 Total net revenue: 30.0
18.1 3.0 51.1 Advertising Group Net revenue for the Advertising
Group for the third quarter of 2008 was $30.0 million, up 25%
year-over-year from $24.0 million in the third quarter of 2007, or
up sequentially from $29.9 million in the second quarter of 2008.
Chart 3: Revenue breakdown of the Advertising Group 3 months 3
months 3 months 3 months ended ended Growth ended ended Growth Sep
30, Sep 30, % Sep 30, Jun 30, % 2008 2007 2008 2008 In US millions
Advertising: Television -- 3.8 -100% -- -- N/A Print/Online 15.5
9.5 63% 15.5 12.2 27% Outdoor/Other 7.4 5.7 29% 7.4 8.2 -10% BTL
Marketing 5.6 3.6 54% 5.6 7.9 -29% Research 1.5 1.4 3% 1.5 1.6 -9%
Subtotal: 30.0 24.0 25% 30.0 29.9 0% Broadcast Group Net revenue
for the Broadcast Group for the third quarter of 2008 was $18.1
million, up 68% year-over-year from $10.8 million in the third
quarter of 2007 or up 30% sequentially from $14.0 million in the
second quarter of 2008. Chart 4: Revenue breakdown of the Broadcast
Group 3 months 3 months 3 months 3 months ended ended Growth ended
ended Growth Sep 30, Sep 30, % Sep 30, Jun 30, % 2008 2007 2008
2008 In US millions Broadcast: Television 6.1 3.5 76% 6.1 6.5 -5%
Radio 2.7 1.9 45% 2.7 2.7 0% Mobile 3.3 3.3 -1% 3.3 2.5 32%
Production 6.0 2.1 187% 6.0 2.3 166% Subtotal: 18.1 10.8 68% 18.1
14.0 30% Print Group Net revenue for the Print Group for the third
quarter of 2008 was $3.0 million, down 50% year-over-year from $5.9
million in the third quarter of 2007, or down 41% sequentially from
$5.0 million in the second quarter of 2008. The year-on-year and
sequential decrease is mainly due to the Beijing Olympics. Chart 5:
Revenue breakdown of the Print Group 3 months 3 months 3 months 3
months ended ended Growth ended ended Growth Sep 30, Sep 30, % Sep
30, Jun 30, % 2008 2007 2008 2008 In US millions Print: Newspaper
1.5 2.5 -42% 1.5 2.7 -46% Magazines 1.5 3.4 -55% 1.5 2.3 -35%
Subtotal: 3.0 5.9 -50% 3.0 5.0 -41% Gross Profit Gross profit for
the third quarter of 2008 was $18.7 million, up 8% year- over-year
from $17.4 million in the third quarter of 2007, or down 11%
sequentially from $21.1 million in the second quarter of 2008.
Adjusted gross profit (non-GAAP), defined as gross profit before
amortization of intangible assets from acquisitions, for the third
quarter of 2008 was $20.5 million, up 7% year-over-year from $19.1
million in the third quarter of 2007 or down 11% sequentially from
$22.9 million in the second quarter of 2008. We provide adjusted
gross profit to break out the amortization of intangible assets
from acquisitions charged within the cost of revenue. Chart 6
provides a breakdown of adjusted gross profit by business group.
Chart 6: Reconciliation for adjusted gross profit by business group
In US millions Advertising Broadcast Print Total Gross Profit 12.2
5.6 0.9 18.7 Amortization of intangible assets from acquisitions(1)
0.3 1.3 0.2 1.8 Adjusted gross profit 12.5 6.9 1.1 20.5 1.
Amortization of intangible assets from acquisitions includes assets
such as client database, brand names, and production inventory.
Operating Expenses Operating expenses for the third quarter of 2008
were $15.8 million, up 42% year-over-year from $11.1 million in the
third quarter of 2007, or down 6% sequentially from $16.9 million
in the second quarter of 2008. The year-on- year increase is mainly
due to share based compensation expenses and costs for
Sarbanes-Oxley compliance. Total operating expenses were composed
of selling and marketing expenses and general and administrative
expenses. Selling and marketing expenses for the third quarter of
2008 were $3.6 million, down 17% year-over-year from $4.3 million
in the third quarter of 2007, or down 35% sequentially from $5.6
million in the second quarter of 2008. General and administrative
expenses for the third quarter of 2008 were $12.2 million, up 79%
year-over-year from $6.8 million in the third quarter of 2007, or
up 8% sequentially from $11.3 million in the second quarter of
2008. Adjusted EBITDA (non-GAAP) Adjusted EBITDA (non-GAAP),
defined as earnings before one time items, other income, interest
income and expense, taxes, depreciation, amortization of intangible
assets from acquisitions and share-based compensation expenses, for
the third quarter of 2008 was $9.5 million, down 8% year-over-year
from $10.3 million in the third quarter of 2007, or down 11%
sequentially from $10.7 million in the second quarter of 2008. The
year-on-year and sequential decrease is primarily due to the
Beijing Olympics. For reconciliation to adjusted EBITDA from income
from operations, refer to Chart 8. Chart 7: Adjusted EBITDA by
business group In US millions Advertising Broadcast Print Total
Adjusted EBITDA by business group 8.5 5.2 -- 13.7 Less: net head
office expenses (4.2) Adjusted EBITDA 9.5 Net Income and Adjusted
Net Income (non-GAAP) Net loss for the third quarter of 2008 was
$15.9 million, down year-over- year from $9.0 million net income in
the third quarter of 2007, or down sequentially from $0.8 million
net income in the second quarter of 2008. The primary reason for
the year-on-year decline is provision for impairment of a principal
protected note. This note is a $25.0 million principal protected
note issued by Lehman Brothers Holdings Inc. ("Lehman Brothers"),
which matures in January 2009 (the "Principal Protected Note"), and
was purchased from UBS Financial Services, Inc. in October 2007.
Considering that Lehman Brothers filed for bankruptcy in
mid-September of this year, the Company has taken a provision of
$16.5 million against the Principal Protected Note. The Company has
no other structured financial instruments. Adjusted net income
(non-GAAP), defined as net income before one-time items,
amortization of intangible assets from acquisitions, share-based
compensation expenses and imputed interest, for the third quarter
of 2008 was $7.4 million, down 40% year-over-year from $12.3
million in the third quarter of 2007 or down 3% sequentially from
$7.6 million in the second quarter of 2008. The year-on-year and
sequential decrease is primarily due to the Beijing Olympics, an
increase in net interest expenses, costs for Sarbanes- Oxley
compliance and tax expenses. For reconciliation from net income to
adjusted net income, please refer to Chart 8. Outlook for fourth
quarter and full year of 2008 XFMedia estimates its net revenue for
the fourth quarter of 2008 will range from $48 million to $50
million. Fourth quarter adjusted net income per ADS is estimated to
range from $0.04 to $0.06 per diluted ADS. Due to challenges in the
current economic environment, XFMedia is revising its estimate of
net revenue for full year 2008 to range from $185 million to $187
million, from previously forecasted range of $198 million to $208
million. Adjusted net income per ADS for full year 2008 is
estimated to range from $0.28 to $0.30 per diluted ADS, from
previously forecasted range of $0.33 to $0.35 per diluted ADS. This
forecast reflects XFMedia's current and preliminary view, which is
subject to change. Other Corporate Developments In October 2007,
the Company purchased from UBS Financial Services, Inc. a $25.0
million principal protected note issued by Lehman Brothers, which
matures in January 2009. In August 2008, the Company borrowed $14.0
million from UBS AG using the Principal Protected Note as
collateral (the "Loan"). On September 15, 2008, Lehman Brothers
filed for bankruptcy, and, after the Company refused to post
additional collateral for the Loan, on September 25, 2008, UBS AG
filed a demand for arbitration with the American Arbitration
Association against the Company seeking repayment of the Loan. On
October 28, 2008, the Company filed its defense to the demand as
well as a cross claim against UBS Financial Services, Inc. for an
amount in excess of $25.0 million. The Company has taken a
provision of $16.5 million against the Principal Protected Note. In
October 2008, the Company entered into a secured convertible loan
facility for up to $80.0 million from affiliates of an existing
large shareholder, Patriarch Partners. This is intended to fund
investment in its broadcast business, with a focus on sports, while
current cash on hand will be used for daily operations and earn out
payments. In light of the global and PRC economic developments and
conditions, the Company has evaluated its goodwill and intangible
assets for impairment and noted no impairment losses for the third
quarter; however, any further significant deterioration of the
business environment in the fourth quarter and after could affect
the overall business outlook and may trigger potential material
non-cash impairment charges on goodwill and intangible assets.
Conference Call Information Following the earnings announcement,
XFMedia's senior management will host a conference call on November
17, 2008 at 8:00 pm (New York) / November 18, 2008 at 9:00 am
(Beijing) to review the results and discuss recent business
activities. Interested parties may dial into the conference call
at: (US) +1 866 578 5771 or +1 617 213 8055 (UK) +44 207 365 8426
(Asia Pacific) +852 3002 1672 Passcode: XFML A telephone replay
will be available two hours after the call for one week at: (US
Toll Free) +1 888 286 8010 (International) +1 617 801 6888
Passcode: 78412461 A real-time webcast and replay will be also
available at: http://www.xfmedia.cn/earnings-webcast About XFMedia
Xinhua Finance Media ("XFMedia"; NASDAQ: XFML) is a leading media
group in China with nationwide access to the upwardly mobile
demographic. Through its synergistic business groups, Broadcast,
Print, and Advertising, XFMedia offers a total solution empowering
clients at every stage of the media process and connecting them
with their target audience. Its unique platform covers a wide range
of media assets, including television, radio, newspaper, magazine,
outdoor, online and other media assets. Headquartered in Beijing,
the company has offices and affiliates in major cities of China
including Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong. For
more information, please visit http://www.xfmedia.cn/ . Safe Harbor
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the outlook for fourth quarter and full year 2008 and quotations
from management in this announcement, as well as XFMedia's
strategic and operational plans, contain forward-looking
statements. XFMedia may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about XFMedia's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward- looking
statement, including but not limited to the following: our growth
strategies; our future business development, results of operations
and financial condition; our ability to attract and retain
customers; competition in the Chinese advertising and media market;
changes in our revenues and certain cost or expense items as a
percentage of our revenues; the outcome of ongoing, or any future,
litigation or arbitration, including those relating to copyright
and other intellectual property rights; the expected growth of the
Chinese advertising and media market; and Chinese governmental
policies relating to advertising and media. Further information
regarding these and other risks is included in our annual report on
Form 20-F and other documents filed with the Securities and
Exchange Commission. XFMedia does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law. Non-GAAP Financial Measures To supplement XFMedia's
consolidated financial results under U.S. GAAP, XFMedia also
provides the following non-GAAP financial measures: adjusted gross
profit, adjusted EBITDA and adjusted net income. XFMedia has
adopted these measures "adjusted gross profit", defined as gross
profit excluding amortization of intangible assets from
acquisitions, "adjusted EBITDA", by defining adjusted EBITDA as
earnings before one time items, other income, interest income and
expense, taxes, depreciation, amortization of intangible assets
from acquisitions and share-based compensation expenses, and
"adjusted net income", by defining adjusted net income as net
income before amortization of intangible assets from acquisitions,
imputed interest, share-based compensation expenses and one-time
items. XFMedia believes that these non-GAAP financial measures
provide investors with another method for assessing XFMedia's
underlying operational and financial performance. These non-GAAP
financial measures are not intended to be considered in isolation
or as a substitute for the financial results under U.S. GAAP. For
more information on these non-GAAP financial measures, please refer
to Chart 8 of this release. XFMedia believes these non-GAAP
financial measures are useful to management and investors in
assessing the performance of the Company and assist management in
its financial and operational decision-making. A limitation of
using non-GAAP measures which exclude share-based compensation
expenses is that share-based compensation expenses have been and
will continue to be a significant recurring expense in our
business. A limitation of using non-GAAP adjusted gross profit,
adjusted EBITDA and adjusted net income is that they do not include
all items that impact our net income for the period. Management
compensates for these limitations by providing specific information
regarding the GAAP amounts excluded from each non-GAAP measure. The
accompanying tables have more details on the reconciliations
between GAAP financial measures that are most directly comparable
to non-GAAP financial measures. The following is a reconciliation
of our non-GAAP financial results: Chart 8: Reconciliation of
non-GAAP financial results 3 months 3 months 3 months ended ended
ended Sep 30, Sep 30, Jun 30, 2008 2007 2008 In US millions Income
from operations 3.5 6.2 4.3 One time items(1) 0.5 -- 0.6
Depreciation 0.8 0.6 0.6 Amortization of intangible assets from
acquisitions 3.4 3.0 3.4 Share-based compensation expenses 1.3 0.5
1.8 Adjusted EBITDA 9.5 10.3 10.7 Net income (loss) (15.9) 9.0 0.8
One time items(2) 17.0 (1.3) 0.6 Amortization of intangible assets
from acquisitions 3.4 3.0 3.4 Share-based compensation expenses 1.3
0.5 1.8 Imputed interest 1.6 1.1 1.0 Adjusted net income 7.4 12.3
7.6 1. There is a one-time adjustment of $0.6 million and $0.5
million for second and third quarter of 2008, representing legal
fees for class action lawsuit. 2. There is a one-time adjustment of
$17.0 million for third quarter of 2008, representing $0.5 million
legal fee for class action lawsuit and $16.5 million provision for
impairment of principal protected note; $0.6 million for second
quarter of 2008, representing legal fees for class action lawsuit;
$1.3 million for third quarter of 2007, representing reversal of
the imputed interest taken in the first half of 2007 as a result of
clarification of terms of one of our exclusive radio advertising
agreements. Net income and adjusted net income per ADS and per
share are as follows: Chart 9: Net income and adjusted net income
per ADS and per share(1) 3 months 3 months 3 months ended ended
ended Sep 30, Sep 30, Jun 30, 2008 2007 2008 Net income (loss) per
ADS - basic (0.24) $0.14 -- Net income (loss) per ADS - diluted
(0.24) $0.13 -- Weighted average number of ADS - basic 68.2 million
63.5 million 67.5 million Weighted average number of ADS - diluted
68.2 million 71.1 million 73.5 million Adjusted net income per ADS
- basic $0.10 $0.19 $0.10 Adjusted net income per ADS - diluted
$0.10 $0.17 $0.10 Weighted average number of ADS - basic 68.2
million 63.5 million 67.5 million Weighted average number of ADS -
diluted 71.8 million 71.1 million 73.5 million 1. For computation
of the net income (loss) per ADS and adjusted net income per ADS
and per share, dividends on convertible preference shares of $0.6
million in both second and third quarter of 2008 were taken into
account. Condensed Consolidated Balance Sheets (In U.S. dollars)
Sep 30,2008 Dec 31,2007 Unaudited (Note 1) Assets Current assets:
45,335,004 44,436,087 Cash Restricted cash (Note 2) 34,310,002
47,252,191 Principal protected note (Note 3) 8,458,793 -- Accounts
receivable (Note 4) 57,848,423 45,706,766 Prepaid program expenses
4,189,661 5,389,250 Other current assets 21,673,497 16,272,798
Total current assets 171,815,380 159,057,092 Content production
deposit and cost, net 3,876,164 8,855,896 Property and equipment,
net 10,391,154 9,191,959 Intangible assets, net (Note 5)
243,990,560 233,505,913 Goodwill 285,210,951 180,125,488 Investment
2,500,000 500,000 Principal protected note (Note 3) -- 24,909,929
Deposits for acquisition of subsidiaries 4,806,863 25,634,000 Other
long-term asset 9,863,982 9,021,936 Total assets 732,455,054
650,802,213 Liabilities, mezzanine equity and shareholders' equity
Current liabilities: Bank borrowings (Note 3) 38,432,587 33,780,188
Bank overdrafts 667,899 960,157 Other current liabilities
97,560,471 44,473,366 Total current liabilities 136,660,957
79,213,711 Deferred tax liabilities 35,371,505 37,741,579 Long term
payables, non-current portion 68,840,567 65,150,610 Total
liabilities 240,873,029 182,105,900 Minority Interests 2,475,733
2,060,745 Mezzanine equity: Series B convertible preferred shares
(par value $0.001; 308,000 shares authorized, issued and
outstanding as of September 30, 2008) 30,250,000 -- Shareholders'
equity: Class A common shares and nonvested shares (par value
$0.001; 143,822,874 as of December 31, 2007 and September 30, 2008
shares authorized; 90,061,269 as of December 31, 2007 and
92,860,049 as of September 30, 2008 shares issued and outstanding)
92,860 90,061 Class B common shares (par value $0.001; 50,054,619
as of as of December 31, 2007 and September 30, 2008 shares
authorized; 50,054,618 as of December 31, 2007 and as of September
30, 2008 shares issued and outstanding) 7,442 7,442 Additional
paid-in capital 450,145,276 439,516,974 (Deficits) Retained
earnings (887,787) 23,903,560 Accumulated other comprehensive
income 9,498,501 3,117,531 Total shareholders' equity 458,856,292
466,635,568 Total liabilities, mezzanine equity and shareholders'
equity 732,455,054 650,802,213 Condensed Consolidated Statements of
Operations 3 months 3 months 3 months ended ended ended Sep 30, Sep
30, Jun 30, 2008 2007 2008 (in U.S. Dollars) Unaudited Unaudited
Unaudited Net revenue: Advertising services 27,484,357 26,012,979
26,852,171 Content production 7,807,840 2,073,675 2,888,164
Advertising sales 15,696,762 12,346,672 19,006,987 Publishing
services 61,757 291,072 108,924 Total net revenue 51,050,716
40,724,398 48,856,246 Cost of revenue: Advertising services
19,349,359 16,509,981 18,781,998 Content production 4,192,846
1,504,931 1,060,419 Advertising sales 8,457,096 5,048,937 7,644,880
Publishing services 334,708 283,714 254,844 Total cost of revenue
32,334,009 23,347,563 27,742,141 Operating expenses: Selling and
distribution 3,587,917 4,337,558 5,560,512 General and
administrative 12,186,200 6,791,370 11,301,796 Total operating
expenses 15,774,117 11,128,928 16,862,308 Other operating income
550,797 -- 7,220 Income from operations 3,493,387 6,247,907
4,259,017 Other income (expenses) (Note 6) (18,578,516) 2,787,286
(1,136,041) Income (loss) before provision for income taxes and
minority interest (15,085,129) 9,035,193 3,122,976 Provision for
income taxes (Note 7) 571,824 (232,016) 1,989,097 Net income (loss)
before minority interest (15,656,953) 9,267,209 1,133,879 Minority
interest 217,192 229,467 370,913 Net income (loss) (15,874,145)
9,037,742 762,966 Dividend on convertible preferred shares 600,000
-- 600,000 Net income (loss) attributable to holders of common
shares (16,474,145) 9,037,742 162,966 Net income (loss) per share:
Basic - Common Shares (0.12) 0.07 -- Basic - American Depositary
Shares (0.24) 0.14 -- Diluted - Common Shares (0.12) 0.06 --
Diluted - American Depositary Shares (0.24) 0.13 -- Condensed
Consolidated Statements of Cash Flows 3 months 3 months 3 months
ended ended ended Sep 30, Sep 30, Jun 30, 2008 2007 2008 (in U.S.
Dollars) Unaudited Unaudited Unaudited Net cash provided by
operating activities 3,196,632 1,550,989 7,603,264 Net cash used in
investing activities (10,874,537) (9,536,253) (19,234,247) Net cash
provided by/(used in) financing activities�� (4,217,299) 1,660,617
(1,506,267) Effect of exchange rate changes 156,411 263,683 666,271
Net decrease in cash (11,738,793) (6,060,964) (12,470,979) Cash, as
at beginning of the period 57,073,797 81,411,707 69,544,776 Cash,
as at end of the period 45,335,004 75,350,743 57,073,797 Notes to
Financial Information 1) 2007 condensed consolidated balance sheets
Information was extracted from the audited financial statements
included in Form 20-F of the Company filed with the Securities and
Exchange Commission on May 19, 2008. 2) Restricted cash Restricted
cash is US dollar cash deposits pledged for the RMB loan facilities
granted by banks for RMB working capital purposes. 3) Principal
protected note In October 2007, the Company purchased from UBS
Financial Services, Inc. a $25.0 million principal protected note
issued by Lehman Brothers Holdings Inc., which matures in January
2009. In August 2008, the Company borrowed $14.0 million from UBS
AG using the Principal Protected Note as collateral. On September
15, 2008, Lehman Brothers filed for bankruptcy, and, after the
Company refused to post additional collateral for the Loan, on
September 25, 2008, UBS AG filed a demand for arbitration with the
American Arbitration Association against the Company seeking
repayment of the Loan. On October 28, 2008, the Company filed its
defense to the demand as well as a cross claim against UBS
Financial Services, Inc. for an amount in excess of $25.0 million.
The Company has taken a provision of $16.5 million against the
Principal Protected Note. 4) Accounts receivables and debtors
turnover Debtors turnover for the second quarter and third quarter
of 2008 were 90 days and 97 days respectively. Our business groups
generally granted 90 days to 180 days average credit period to
major customers, which is in line with the industry practices in
the PRC. 5) Intangible assets Net book value for intangible assets
as of September 30, 2008 was $244.0 million. It mainly represents
the fair value of the long-term advertising agreements for the
Broadcast and Print Group. The net book value of the intangible
assets was primarily composed of a $100.9 million advertising
license agreement for our TV business, a $74.8 million exclusive
advertising agreement for our newspaper business, and $9.1 million
of exclusive advertising agreements we entered for radio
advertising operations in Shanghai, Beijing and Guangdong. We are
in the process of obtaining third-party valuations of certain
identifiable intangible assets for the acquisitions and hence the
net book value for intangible assets is preliminary and subject to
revision once we complete the valuation exercise. 6) Other income
(expenses) Other income (expenses) includes net interest income
(expenses) and net other income (expenses). Other expenses for the
third quarter of 2008 include a provision of $16.5 million against
the Principal Protected Note (see Note 3). 7) Provision for income
taxes Provision for income taxes includes deferred tax credits of
$1.0 million and $0.7 million in the second quarter and third
quarter of 2008 respectively. For more information, please contact:
Media Contact Ms. Joy Tsang, XFMedia Phone: +86-21-6113-5999 Email:
Ms. Lindsay Koval, AGG International Phone: +1-212-614-4170 Email:
IR Contact Mr. Edward Liu, XFMedia Phone: +86-21-6113-5978 Email:
Mr. Howard Gostfrand, American Capital Ventures Phone:
+1-305-918-7000, toll free +1-877-918-0774 Email: DATASOURCE:
Xinhua Finance Media Limited CONTACT: Media Contacts: Ms. Joy
Tsang, XFMedia, +86-21-6113-5999, or Ms. Lindsay Koval, AGG
International, +1-212-614-4170, for Xinhua Finance Media Limited;
IR Contacts: Mr. Edward Liu, XFMedia, +86-21-6113-5978, , or Mr.
Howard Gostfrand, American Capital Ventures, +1-305-918-7000, toll
free +1-877-918-0774, for Xinhua Finance Media Limited Web site:
http://www.xfmedia.cn/ http://www.xfmedia.cn/earnings-webcast
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