A combination of a robust economy and an advertising boost from the World Expo in Shanghai and the forthcoming Guangzhou Asian Games saw interim earnings at Clear Media, the country's largest outdoor media company, soar 170 per cent.
The Hong Kong-listed company recorded net profit of HK$77 million in the first six months, compared with HK$28 million a year ago, as turnover increased 11 per cent to HK$585 million. Chief financial officer Teo Hong Kiong said major costs such as rental and maintenance had remained stable as business experienced a bullish increase.
In Shanghai, the company increased its rate card early in the year in anticipation of rising advertising demand for the expo. Its average sale price rose 46 per cent, with first half turnover in the city increasing 42 per cent to HK$92 million.
The rate card was also increased in Guangzhou before the Asian Games in November.
However, by sticking to a 9 per cent rise in the average sale price, Clear Media had seen the occupancy rate decline from 63 per cent to 56 per cent.
Chief operating officer Harrison Zhang said the Shanghai rate card would see another adjustment next year, similar to when prices were lowered in Beijing after the Olympics. 'But it won't come down by 46 per cent. It will be still higher than the price in 2009,' he said.