China MediaExpress ups earnings guidance

China MediaExpress Holdings has upgraded earnings guidance and revealed it is looking at potential acquisition opportunities.

The group, whose television adverts are shown on buses in the People’s Republic, said it expects net income to be in the range of US$82 million to US $85 million in 2010.

This compares with a previous guidance that suggested profits would be $71 million to $75 million.

The upbeat tenor of the latest update to trading boosted the shares US$1.25, or more than 10 per cent, to US$10.82.

CME’s chief executive Jacky Lam said: ‘We expect to continue to benefit from China’s rapid increase in advertising spending – which is projected to remain one of the fastest growing advertising markets in the world – sustained economic growth, and increases in disposable income and domestic consumption.

‘We plan to continue to grow our business organically and we are also actively looking for acquisition opportunities within our core business platform.

‘Furthermore, we are working hard to finalise several new projects which we believe will further enhance CME’s shareholder value.

‘We have sufficient resources to fund our business expansion plans, including internal growth initiatives as well as potential acquisitions.’

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