Annual Report 2003 - Clear Media

INTERVIEW WITH THE CEO
Q: 2003 was a dramatic year. What were the highlights for Clear Media?
A: Many industries experienced ups and downs in 2003, and this was the most difficult
year I’ve had since joining the Company in 1998. In the beginning of this year, the SARS
outbreak and the war in Iraq dealt a harsh blow to the recovering global economy. The fastdeveloping
advertising industry was one of the first industries to be affected and was caught in
an economic trough for the third year in a row.
However, it is encouraging that Clear Media was still able to maintain stable growth in 2003
while others in the industry lagged behind. The annual turnover, EBITDA and EBITDA margin
recorded an increase of 14%, 16% and 1%, respectively, demonstrating the diligence of our
staff members, from the sales force to the management team. As the leading outdoor media
company in the PRC, we endeavor to satisfy the needs of our clients through the utilization of
our leading position, our unique understanding of and insight into the market, and our flexible
measures in coping with market changes and client demands, such as strengthening the
communication between our sales team and our clients, and launching a new advertisement/
network portfolio. In addition, we launched innovative scrollers and three-dimensional
(“3-D”) display panels in Shanghai and Guangzhou, which not only emphasized the messages of
the advertisers, but also injected vitality into the market and accelerated our development in
the PRC’s outdoor advertising market.
Q: Were there any substantial changes in the client mix and, if so, why?
A: Clear Media offers a cost-effective outdoor advertising platform that enables advertisers
to capture new business opportunities by efficiently delivering their messages to target
consumers. Leveraging on its extensive standardized network, Clear Media continued to develop
its client base. Last year, the number of clients with orders over RMB5 million increased from
9 to 18, while clients with orders over RMB3 million increased from 31 to 47. This remarkable
performance reflects the recognition and support we enjoy from advertisers across the country.
For Clear Media’s client mix by industry, all domestic and international brands grew, especially
in the second half of 2003, when the five top advertising industries were telecommunications,
beverages, cosmetics and toiletries, pharmaceuticals, and home appliances. Fashion,
automobiles, and banking and financial services recorded the fastest growth during this time,
because of enhanced living standards in the PRC and an increase in commercial activities.
Clear Media Limited
Annual Report 2003
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