Media firm Asiaray suffers another financial loss
Despite money currently heading in the wrong direction, the Group believes it can seize opportunities during the crisis.
Asiaray Media Group Limited posted a $141.4m loss for the year of 2020, as the pandemic disrupted its operations, particularly the implementation of new projects that are still at the "ramp-up" stage.
This is the second consecutive year the Group’s profit dropped, after recording $108.67m loss in 2019. Despite this, Asiaray says itsfinancial resources remain “sound” and the group remains capable of rebound from the crisis.
“Over the past year, the pandemic has continued to weaken the operational environment, which we have tried our best to minimize the impact," Chairman and Executive Director Vincent Lam said in a statement. "However, being a well-equipped company, we firmly believe that out of crisis comes opportunity.”
Asiaray managed to achieve a net cash position of $412.3m in 2020 for the seventh year in a row. In 2019, its cash and cash equivalents amounted to $445m.
Its revenue, however, declined 17% to $1.56b, which was partially linked to a 6.3% drop in its airport media advertising business to $693m. This was a victim ofreduced passenger traffic during the COVID-19 related travel restrictions.
In light of this, the Group explored other airports. It has since garnered the rights to operate new media resources at the Terminal 1 and Terminal 2 buildings of the new Chengdu Tianfu International Airport. Asiaray presently covers more than 33 airports in Mainland China.
The Group also recorded a decline in sales from metro lines as reflected in its revenue, which slid by 35.2% to $596m. In response, the Group secured exclusive rights to operate media resources at stations and trains along the new Tuen Ma Line Phase 1 in Hong Kong.
Asiaray was also awarded concession rights to Kunming Railway Station and Lijiang Railway Station in China.
The Group has further launched its bus advertising venture, starting with The Kowloon Motor Bus Co. and Long Win Bus Company Limited.
Asiaray plans to further expand its footprint in Mainland China, which is seen to be in fast mode in terms of full recovery. It will also leverage its O&O (Out-of-Home and Online) initiatives to strengthen its position.
“Even though the operational environment will remain unstable in the immediate future, with our successful track record and leading market positon, we remain optimistic about our prospects and will seize the enormous opportunities that will arise after the pandemic,” Lam said.