Focus Media 2Q profit drops on charges

NEW YORK—Advertising network operator Focus Media Holding Ltd. said Sunday its profit fell in the second quarter, though adjusted results rose on increased advertising revenue, beating analysts' forecast.

Net income totaled $36.1 million, or 28 cents per share, for the three months ended June 30, compared with $37.7 million, or 32 cents per share.

Excluding share-based compensation expenses, acquired intangible assets, amortization and other charges, earnings amounted to $57.5 million, or 44 cents per share, from $45.3 million, or 38 cents per share.

Revenue more than doubled to $211.7 million from $102.4 million.

Analysts polled by Thomson Financial, on average, forecast earnings of 40 cents per share on sales of $191.8 million.

Though the Shanghai, China-based business was hurt by the earthquake in May, conditions rebounded quickly in June. The company also expanded its network capacity in the second quarter.

Digital out-of-home advertising revenue gained 76.2 percent to $135.4 million. Internet advertising service revenue more than doubled to $76.1 million.

The company expects third-quarter earnings, excluding one-time charges, of 53 cents to 54 cents per share, higher than the consensus estimate, on revenue ranging from $225 million to $235 million.

Analysts expects earnings of 49 cents per share on sales of $230.1 million.

The company also said that Diana Chen, its chief operating officer, recently left the company due to personal reasons. Because several regional managers were recently appointed to manage the operations in markets she oversaw, Focus Media will not seek to fill the vacancy soon.

Shares jumped $3.02, or 11.4 percent, to $29.25 in morning trading. The stock has traded in a range from $22.48 to $66.30 in the last 52 weeks.