Beijing Media Corp, which floated its shares at the end of 2004, spent only 0.26 per cent or $2.38 million of its net proceeds of $889 million by the end of last year, as tightening government regulations hindered expansion plans. In its results announcement yesterday, the company said it spent $2.38 million to launch magazines on personal wealth management lifestyle and cultural activities. It had budgeted $100 million for developing weekend newspapers, $250 million on television business and $275 million on acquisitions. 'The company has spent considerable time on negotiations about acquisitions, as the media industry is sensitive and subject to limitations imposed by the government,' it said, adding that it would spend more on business development this year. Meanwhile, the listed arm of Beijing Youth Daily newspaper recorded a poorer than expected result for last year. Net profit tumbled 89.4 per cent over 2004 to 23.59 million yuan with turnover dropping 28 per cent to 857 million yuan. Earnings per share were five fen but the company declared a final dividend of 25 fen per share. The company blamed the poor results on weak advertising revenue from the mainland property market. The flagship Beijing Youth Daily's property-related advertising revenue was down 38.3 per cent to 256 million yuan. Beijing Media will expand its range of topic-focused magazines and develop outdoor advertising business. The company also plans to acquire the advertising business of Legal Evening Post from its parent company. 'The mainland advertising revenue in print media is estimated to perform better than outdoor media this year,' an analyst said, adding that the low entry barrier of outdoor media industry meant more intense competition.