Asiaray's year on year losses increase by 6% in 2021

OOH media company Asiaray lost HK$173.2 million last year, increasing by 6% from HK$163.4 million in 2020, due to the increase in selling and marketing expenses, administrative costs. The company said for the year ended on 31 December 2021, the group recorded a 46.8% rise in total revenue to HK$2,285.1 million, while the combine revenue was HK$3,182.6 million, increasing by 43.9% year on year.

The company said during the year, the revenue from the aiport segment remained stable, totalling HK$760.8 million, while the gross profit and gross profit margin, which were at HK$243.4 million and 32.0%, respectively. The number of domestic flights increased progressively since the COVID-19 outbreak in mainland China, despite the significantly reduced demand for international air transportation. Also, during the year, the group obtained the exclusive concession rights to operate media resources in the Longchuan Guangsong Airport in Yunnan, marking the group's first step towards tapping the media resources of general-purpose airports.

In the future, the group said it will continue to explore and secure the rights to operate new media resources in various national airports.

Revenue from the metro lines and billboards segment culminated in an increase in revenue of 40.8% to HK$838.9 million, while the gross profit and gross profit margin, which were at HK$143.2 million and 17.1%, respectively. Last year, the group was appointed as the exclusive media and advertising partner of Beijing Metro Line 17, and was entrusted with building the first digitalised media network for the entire metro line.

It also further expanded its presence in the Greater Bay Area by securing the exclusive rights to operate the media resources in Shenzhen Metro Line 2 (Phase 3), 6, 8 (Phase 1) and 10. Regarding the overseas business, the second stage of Singapore Thomson-East Coast Line (TEL) has been in operation since August 2021. As the TEL will open in stages, Asiaray's screens will be programmatically available via related platforms to provide flexibility for advertisers and brands.

In addition, the Group was granted the exclusive right to operate the media resources and the shops along the domestic section of the China-Laos Railway.

In Hong Kong, the advertising venture with KMB and Long Win Bus Company, combined with the performance of other segments, including the Shenzhen Baoan International Airport media resource agency business, Asiaray's revenue in the "Bus and Other" segment surged by 155.7% to HK$685.5 million during 2021.

Moving forward, the company said the Chinese market had the potential to recover quickly and that local brands would emerge, requiring countrywide advertising solutions.

"Capitalising on our industry strengths and shrewd insights into market trends, we will resolutely implement the 'mega transport, multi-media and full ambience capability' advertising solutions, maintain strong ties with advertisers and brands and keep abreast of and respond swiftly to their specific needs," said Vincent Lam, chairman and executive director of Asiaray.

Related articles
Asiaray targets tech-savvy audiences through bus shelters in DOOH campaign
Asiaray Media Group optimistic of growth in second half of 2021