(Yicai Global) Aug. 17 -- Chinese advertising agency Focus Media Information Technology said its revenue and net profit both dived in the first half, amid a sharp downtrend in demand from domestic internet businesses.

Focus Media’s revenue totaled CNY4.9 billion (USD723 million) in the first half, down 33.77 percent from a year earlier, according to its semiannual report released yesterday. Net profit was CNY1.4 billion, down 51.61 percent year-on-year. The company’s stock price [SHE: 002027] closed up 1.54 percent at CNY5.92 (87 US cents) today.

The company, which specializes in out-of-home advertising on digital screens, said it had been greatly affected by weaker advertising demand due to the Covid-19 epidemic since March. Also, the release of advertisements in some key cities was restricted in April and May, Focus Media said, although it added that demand has recovered since June.

Competition in the advertising industry has intensified in recent years, the report said, noting that some companies have been competing for market share by cutting prices continuously.

Focus Media’s financial results have mainly been affected because internet companies have slashed their advertising, said Zhang Liangwei, an analyst with Soochow Securities.

In the first half, Focus Media made revenue of CNY4.5 billion from advertising in buildings, down 33.04 percent from the same period last year, and CNY391 million (USD57.7 million) from advertising in cinemas, down 39.96 percent.

The building advertising revenue from the internet industry was CNY661 million in the first half, plunging 70.65 percent year on year, and its proportion of total revenue for Focus Media also fell to 13.63 percent, compared to more than 30 percent in the first half of 2021. The cinema advertising revenue from the internet industry totaled CNY58.5 million (USD8.6 million), down 59.15 percent from a year earlier.

Editors: Shi Yi, Tom Litting