MediaNation eyes benefits from ending bus contract

The termination of a contract between MediaNation and New World First Bus will lead to better financial results for the outdoor advertising firm, the company says.

Last week, MediaNation said it had turned down an option to renew its licence to advertise on the sides of 750 New World buses. The contract was not renewed when it expired on July 31.

Chief executive Francis Chu Chung-hong said the move would not hurt its operating performance.

'It only represented less than 3 per cent of the total number of bus bodies we had.

'The business had been experiencing a loss since 2001,' Mr Chu said.

New World buses accounted for 6.9 per cent of MediaNation's turnover last year and 8.1 per cent in 2001.