China Cablecom Holdings, Ltd., BVI-registered joint-venture provider of cable television services in China, reported the unaudited financial results for the third quarter 2008. The earnings release reflects both pro forma and actual financial results due to the completion of China Cablecom’s acquisition of a 60% interest in Hubei Chutian Video & Information Network in the end of the second quarter of 2008. The financial results of Hubei are reflected in the actual third quarter 2008 results beginning on July 1, 2008, while pro forma results of operations reflect the Hubei acquisition as well as the business deal of the BVI company with Jaguar Acquisition Corporation as if they had occurred on January 1, 2008.
Consolidated revenues for the third quarter of 2008 increased to $9.4 mln, compared to pro forma revenues of $9.1 mln for the second quarter of 2008. Consolidated operating expenses for the third quarter of 2008 were $5.6 mln, compared to pro forma operating expenses of $6.8 mln for the second quarter.
On a GAAP basis, net comprehensive loss for the third quarter of 2008 was $4.5 mln, or $0.48 per basic and fully diluted share – compared to a net comprehensive loss of $3.5 mln, or $0.38 per basic and fully diluted share in the second quarter of the year. Higher net loss for the third quarter 2008 was significantly impacted by non-cash amortization of intangible assets , and non-cash interest expense associated with original issue debt discount and deferred financing costs relating to China Cablecom’s September 2007 bridge financing and May 2008 convertible note offering in the amount of $2.69 mln.
For the nine months period ended September 30, 2008, pro forma revenues were $26.8 mln, while pro forma operating expenses made $18.1 million. Net comprehensive loss for this period was $9.6 mln, or $1.46 per basic and fully diluted share. For the nine months ended September 30, 2008 the BVI company used weighted average shares outstanding of 6.5 mln.
As of September 30, 2008, China Cablecom had $35.6 mln in cash and cash equivalents.
Among the recent highlights of the BVI company, there are manager named participation in several investor conferences, and the announcement in June 2008 of the first phase of acquisition of Hubei – a joint venture with Hubei Chutian Broadcasting and Television Network Co., Ltd.