Business Media China AG has started into the new business year 2008 according to plan. Compared with the first quarter of the previous year the BMC Group has increased its sales volume by 63 % to EUR 3.3 million in the traditionally weakest first quarter of the year.
The results still show the expected loss for the first quarter of 2008 in the amount of EUR 2.2 million. This reflects the seasonally varying activities throughout the different quarters of a year, due to the Chinese New Year and the cycle of fairs throughout a year, which only starts after the first quarter.
The BMC Group has a full order book in its business segments exhibitions & conferences and advertising media at the time of the report. According to current planning, Business Media China AG expects to achieve with its existing activities (unchanged) consolidated total sales in the amount of EUR 35 to 45 million for the financial year 2008. According to plan this will also lead to a positive pre-tax result on a consolidated basis. Both the profitable segment of exhibitions & conferences as well as the developing segment of advertising media, which is expected to present a significantly positive result, will contribute to an overall profit.
———- End of the ad hoc statement———-
The segment exhibitions & conferences concentrated on the planning, organisation as well as the marketing of the exhibitions and conferences taking place in China in the year 2008. The PPI & FDC Fair, one of the important fairs in Southern China in the field of food processing and packing, and China Beauty Expo in Shanghai, one of the leading events in Asia in the field of cosmetics and beauty products, are under preparation for the second quarter. The booking figures in particular for the beauty and cosmetics area have increased significantly compared with last year’s exhibition. With an exposition area of over 66.000 square metres the China Beauty Expo develops into the leading exhibitions in Asia.
The segment advertising media has increased the exploitation of advertising space in the first quarter 2008 compared with the previous year. The quarterly sales volume of this segment of EUR 3.2 million represents an increase of 62 % over the 1st quarter of 2007. BMC Advertising and BMC Flying Dragon in particular were able to increase sales in the first quarter of 2008 compared to the first quarter of 2007.
BMC has formed with the Chinese company Skyflying Media a joint venture for the marketing of advertisement space all over China. The new company to be established will be controlled as to 51% by BMC Advertising and as to 49% by our Chinese partner, Skyflying Media. BMC will be one of the leading suppliers in the segments advertising and advertising media in China. In the future an expansion of this new marketing company in the area of advertising media by renting additional advertising space is possible. BMC Skyflying Media will have its headquarters in Beijing. The foundation phase will be completed in the 2nd quarter 2008, first sales are expected in June 2008.
TC Group, the advertising company, has completed its restructuring in the first quarter of 2008. The management group was completed and the participation in extensive advertising bidding projects in Germany was expanded. A representative office was established in Beijing in order to accompany Chinese enterprises to Germany and be able to directly offer German enterprises advertising projects in China. The TC Group sees herein a high development potential for the future. A renowned Chinese building contractor has booked an order for an advertising campaign in Germany in the first quarter 2008.
The segment Sourcing & IT has continued the project phase for the development of new products in the first quarter. The testing phase will be started during the course of the year. Presentation and marketing will follow at shortly thereafter.
The number of employees in the BMC Group as of March 31, 2008 amounts to 273.
The complete Quarterly financial report Q1 2008 is available on our website www.businessmediachina.com.
For more information:
Business Media China AG
Rotebühlstrasse 87
DE-70178 Stuttgart
invest@businessmediachina.com
Edwin van der Geest
+41 43 268 32 30
