Tracking of Listed B2B Media Companies in Asia

Executive summary

This is the third edition of this BSG report which is published semi-annually. It tracks the financial performance of the top Asian B2B media companies that are publicly-listed or publish reliable financial figures. In the tables that comprise this report, BSG has published all available information. We will update and complete the profile as more financial data is published.

The companies in this report operate on three different financial calendars ending on 31st March, 31st October or 31st December. As a result, the revenue and gross profit of some companies are not as up-to-date as others. Consequently, the rankings can change significantly as a number of these companies are growing their revenues remarkably quickly.

In this edition, Alibaba.com has taken over the number one ranking in terms of revenues. Alibaba.com's revenues grew by 59% rising from US$198 million in 2006 to US$314 million last year. Alibaba.com surpassed the former revenue leader, Pico Far East which recorded revenues of US$275 million. Even if Pico's revenues are combined with its publicly-listed Thai subsidiary, Pico Thailand, Alibaba.com still retains the number one ranking.

Nine of 25 companies in this report currently generate revenues of over US$100 million. Of those nine, Xinhua Finance Media grew the fastest expanding its revenues from US$59 million to US$135 million, an increase of 129%. This growth was largely due to a number of key acquisitions completed since the company's March 2007 IPO.

Of the larger companies, Baidu grew the second fastest, increasing revenues by 108%. Unlike Xinhua Finance Media, however, Baidu's revenue growth is organic. The Beijing-based Internet search provider increased its revenues from US$122 million to US$254 million. Baidu surged in the revenue rankings moving up from eighth position in the last report to fourth.

Overall, the fastest growing revenues were recorded by China Finance Online (CFO) Business Media China (BMC) which expanded its revenues from US$7.1 million to US$25.9 million, an increase of 263%. CFO provides financial data and analytical tools to investors in China.

Business Media China (BMC) was the second fastest growing company. Revenues jumped by 211% rising from US$11.6 million to US$36 million. BMC is a German company with most of its operations in China. The company organises exhibitions, publishes trade titles and operates a network of outdoor advertisement locations in China. It was also the fastest-growing in its previous financial year.

This table is still dominated by relatively small companies. Sixteen of the companies posted revenues of less than US$50 million and of those, seven have revenues of less than US$20 million. Seven of the top 25 companies recorded a drop in revenues. All of those companies posting a revenue drop were amongst the smaller ones with revenues of less than US$50 million.

In terms of gross profit, again Alibaba.com is at the top of the table with US$274 million. Xinhua Finance moved ahead of Global Sources to take the number two spot. Xinhua Finance posted gross profit of US$131 million and Global Sources' was US$95.5 million. Pico Far East (US$92.5 million) and Baidu (US$79 million) round out the top five. Other notable increases include China Finance Online which increased 279% and Xinhua Finance Media (109%) and Hong Kong-listed CCID Consulting (86%).

Half of the 24 companies recorded a gross profit of US$10 million or less. Four of the smaller companies fell three or more places on the gross profit ranking table. Infomedia in India dropped eight places and Hong Kong-based Info Communication fell by five places. Ninetowns and China.com both fell by three.

As of 24th June, Baidu has the largest market capitalization at US$10.9 billion. Since our January report, Alibaba.com's valuation has fallen by more than US$9 billion dropping from US$16.8 billion to US$7.5 billion this week. Global Sources' valuation fallen similarly from US$1.1 billion in January to US$640 million this week. China Finance Online (US$392 million) and Zhejiang Netsun (US$288 million) complete the top five. Thirteen of these 23 companies have a market capitalization of less than US$100 million. The smallest remains CCID Consulting with a valuation of just US$5.6 million.

Finally, this report includes for the first time a ranking of the listed companies according to their price-earnings ratio. Heading the list is Baidu which, as of 24th June, had a p.e. of 121.1, followed by SEEC Media which was also trading at an ambitious 107.7. Alibaba lead the rest of the pack at 51.2, followed by Info Communication (41.2) and Zhejiang Netsun (31.5). Of the profitable companies, four had p.e.s under 10; Pico, Cybermedia, Pico Thailand and Xinhua Finance.