All along, I thought FMCN only operates their business/network in mainland China, but anybody knows if it has any association with FocusMedia Hong Kong and FocusMedia Singapore etc.? Please refer to website www.focusmedia.tv
They seem to be related, www.focusmedia.tv claims that it is a member of NASDAQ-listed Focus Media Holdings Limited. So I just wonder if their business in a way contributes to FMCN's financial (e.g. via royalty fee).
From the 20F page 40: “We have established joint ventures…outside of mainland China, including Hong Kong, Taipei, and Singapore through contracts with local operators…license our brand name. None…are a material part of our business”
Also, they are a very complex company with dozens of subsidiaries which you can exam in the 20F in the last few pages. This is one of the reasons it takes them so long to report earnings.
They do not have to consolidate with their financials if they only own minority stake (similar to stakes Dentsu partnership and Yanhuang healthcare equity stake). This would be upside but probably not that big relative to valuation currently. But can be big if they develop. For example Yahoo's stakes in Yahoo Japan and Alibaba are worth $9/share but not included in their financials.
"This would be upside but probably not that big relative to valuation currently. But can be big if they develop."
Thanks for the input and I hope it develops big in long run.
Recently I visited several office buildings around the city (Hong Kong), to my surprise, I noted the focusmedia tv insalled in their lobby, also noted they have placed a lot of recruitment ad. as result of business growth. I am sure the network has been growing here in Hong Kong and in many other places outside mainland China.