HONG KONG, April 21 /Xinhua-PRNewswire/ -- Xinhua Finance
(TSE Mothers: 9399), China's premier financial services and media company,
today reported a net profit of just under US$1.0 million for the first quarter
of 2005 under international accounting standards.
The company said the result showed that the focus on profitability and
improving margins is proving effective and said it is confident of achieving
the forecasted results for the first half of 2005.
Total revenue for the quarter amounted to US$22 million, on target with
internal forecasts. EBITDA, an important international measure of high growth
companies such as Xinhua Finance, was US$3 million, amounting to 60 per cent
of forecasted EBITDA for the first half of the year. EBITDA stands for
Earnings Before Interest, Taxes, Depreciation and Amortization.
Revenue growth was driven by demand for China-related information products,
increased popularity of Xinhua Finance's index and ratings products and
expanded offerings in the news and investor relations services.
The company said that the reasons for the favorable results in the first
quarter included greater efficiency in integration and cross-selling efforts
between Xinhua Finance's business units.
The net result under international accounting standards was a profit of
US$ 0.97 million, while under Japanese accounting standards a loss of US$0.78
million was registered. The main reason for the difference between these
numbers is that the Japanese standards take a different approach from the
international standard on how to account for goodwill from acquisitions.
Xinhua Finance, founded in 1999, was listed on the Tokyo Stock Exchange in
October last year. Its products and services, including stock indices, credit
ratings and financial news, form a bridge between China's markets and the
world.
The company, having achieved profitability under international accounting
standards in the first quarter of 2005, is also forecasting a net profit under
Japanese standards for the full year 2005.
Xinhua Finance CEO Fredy Bush said the first quarter results point to
continuing fast and healthy growth for the company.
"We are tracking well to our business plan, and it is a pleasure for me to
report that we are now profitable according to international accounting
standards," Ms Bush said.
She said the company is benefiting from the growing demand for all its
China-related products. "The increasing integration of China's capital markets
with the world is having a very positive effect on our business," Ms Bush
added.
Xinhua Finance CFO Gordon Lau said the results for the first quarter of
2005 reflect the company's continuing focus on improving margins and the
synergies that are accruing from the companies acquired last year, including
Mergent Inc, Market News International (MNI), G7 and Stone & McCarthy Research
Associates.
"The integration is going well, and we are seeing a wide range of benefits
emerging, including expanded sales and product distribution networks, and also
new products such as the China InsightTM database product and the Xinhua
Finance MNI business sentiment survey launched earlier this month," Mr Lau
said.
About Xinhua Finance Limited
Xinhua Finance Limited is China's premier financial services and media
company, listed on the Mothers Board of the Tokyo Stock Exchange
(symbol: 9399). The Company provides financial news and information, as well
as a broad array of financial products and services unique to the China
markets. Xinhua Finance provides real time coverage of Chinese and Asian
equity markets, delivering an integrated platform of China-specific indices,
financial news feeds, credit ratings, and investor relations services to
global financial institutions and re-distributors via leased line, Internet,
and satellite technology.
Founded in 1999, the Company is headquartered in Hong Kong and has 21
offices and 19 news bureaus across Asia, Australia, North America and Europe.
For more information, see http://www.xinhuafinance.com .
CONTACT:
In Japan
Mr Sun Jiong
Tel: +81-3-3500-5328
Email: jsun@xinhuafinance.com
In Hong Kong
Ms Joy Tsang
Tel: +852-3196-3983, +852-9486-4364
Email: joy.tsang@xinhuafinance.com
In US
The Ruth Group (PR Contact in the US)
Mr Gregory Tiberend
Tel: +1-646-536-7005
Email: gtiberend@theruthgroup.com
Mr Jason Rando
Tel: +1-646-536-7025
Email: jrando@theruthgroup.com
SOURCE Xinhua Finance Limited
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Related links:
http://www.xinhuafinance.com
CONTACT:
In Japan, Mr Sun Jiong, +81-3-3500-5328, or
jsun@xinhuafinance.com, in HK, Ms Joy Tsang, +852-3196-3983, or,
+852-9486 4364 or joy.tsang@xinhuafinance.com, all of Xinhua
Finance; in US, Mr Gregory Tiberend, +1-646-536-7005, or,
gtiberend@theruthgroup.com, or Mr Jason Rando, +1-646 536-7025 or
jrando@theruthgroup.com, both of the Ruth Group for Xinhua
Finance
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