BVI-based China Cablecom Holdings, Ltd., cable network operator, acquirer and provider of services in the Shandong province of the Chinese Republic, has announced its unaudited financial results for the fourth quarter and full year periods ended December 31, 2008.
This earnings release reflects both pro forma and actual financial results, due to the completion of China Cablecom’s acquisition of 60 per cent economic interest in Hubei Chutian Video & Information Network, late in the second quarter of 2008. For purposes of U.S. Generally Accepted Accounting Principles, the financial results of Hubei have been consolidated starting from July 1, 2008.
Consolidated revenues for the fourth quarter of 2008 were $9.8 million, compared to revenues of 9.4 million for the third quarter of 2008, and this increase was primarily due to the growth in paying subscribers. Consolidated operating expenses for the fourth quarter made $5.7 million, compared to operating expenses of $5.6 million for the third quarter 2008.
General and administrative expenses for the fourth quarter of the year included amortization of intangible assets, and deferred finance costs of $1 million; overhead costs from administrative expenses of $1.2 million, and operating JV overhead costs of $3.5 million. Net comprehensive loss for the fourth quarter of 2008 was $4.3 million or $0.44 per basic and fully diluted share, compared to a net comprehensive loss of $4.5 million, or $0.48 per basic and fully diluted share in the third quarter of 2008.
In December 2008, China Cablecom announced extension for the outstanding payment owed to Binzyhou Broadcasting, with respect to a joint venture formed in September 2007 to operate the cable networks in Shandong Province. This extension was granted until January 31, 2009 and then later extended further until December 31, 2009.
On a pro forma basis, BVI company’s revenues for the twelve months period ended December 31, 2008 were $36.6 million. Pro forma operating expenses for this period were $23.8 million. As of December 31, 2008, the company had $29.2 million in cash and cash equivalents.