Analyst Day well attended and 6 hours of discussions and very open Q&A left a very positive feeling that the shares should trade on the fundamentals and not rumors.Goal of greater transparency achieved.
June demand returned to normal — While Focus did not want to adjust guidance again (which, we feel, is the right call), it did indicate that not only did June demand return to normal after the earthquake-impacted May, but that the outlook, at least qualitatively, remains strong
Internet: Demand remains strong, 09 sees little “Olympics hangover” —Internet CEO Zhu stated (more than once) that the online adv. market in 09, despite difficult comps from Olympics spend in 08, should grow at least +40% YoY in 09, with major sites (presumably Sina & Sohu) growing faster than that.
Sales force comp changes: to improve profitability; not disruptive.advertiser churn rate at Focus is extremely low (Focus enjoys 99% advertiser renewal)