You can also identify forward-looking statements by terms such as will, expect, anticipate, future, intend, plans, believes, estimates and similar statements. The accuracy of these statements may be affected by a number of business risks and uncertainties that could cause our actual results to differ materially from those projected or anticipated.These risks and uncertainties include, but are not limited to our limited operating history for our current operations and the short history of the new digital media sector, which may make it difficult for you to evaluate the viability and prospects of our business, the integration of acquired businesses, competition from present and future competitors in China’s growing advertising market and other risks outlined in our filings with the Securities and Exchange Commission, including our registration statement on Form F-1. We do not undertake any obligation to update this forward-looking information except as required under applicable law. Now I will turn the call over to our CFO Mr. Kit Low. Kit Low Thank you Jing and good morning everyone. Welcome to the Focus Media’s second quarter results conference call. In the second quarter of 2012 aggregate net revenue from the LCD display network, in-store network, poster frame network and movie theater network was $219.3 million, which exceeded by approximately 3% the mid-point of the company guidance range of $211 million to $213 million. This represented a year-on-year increase of 32% from $166.1 million for the second quarter of 2011 and a quarter-on-quarter increase of 19% from $184.3 million for the first quarter of 2012. Net revenue from the traditional outdoor billboard network for the second quarter of 2012 was $13.7 million, meeting the guidance of $13 million to $15 million. This represented a year-on-year increase of 6% from $12.9 million for the second quarter of 2011. Non-GAAP net income attributable to Focus Media was $81.9 million, exceeding the midpoint of the company guidance range of $78 million to $80 million by 4%, and representing a year-on-year increase of 30% from non-GAAP net income attributable to Focus Media of $62.9 million for the second quarter of 2011 and a quarter-on-quarter increase of 33% from non-GAAP net income attributable to Focus Media of $61.6 million for the first quarter of 2012.
Non-GAAP net income attributable to Focus Media per diluted ADS was $0.62, representing a year-on-year increase of 41% from $0.44 per diluted ADS for the second quarter of 2011 and a Q-on-Q increase of 35% from $0.46 per diluted ADS for the first quarter of 2012.Net cash inflow from operating activities for the second quarter of 2012 after deducting the purchase of equipment and subsidiaries was $87.2 million, a year-on-year growth of 134% from $37.3 million for the second quarter of 2011 and a Q-on-Q growth of 126% from $38.5 million for the first quarter of 2012. In the second quarter of 2012, we continue to see our year-on-year revenue growth mainly driven by strength of our poster frame network due to its exposure to promotional spending budget which tends to be less effective by macro economic uncertainty. We saw some improvement in year-on-year growth in LCD network in the second quarter 2012 as compared to the first quarter 2012, but still have not seen a return to normalization due to continued impact from cutbacks of branding budgets as a result of macroeconomic uncertainties. Before I turn to third quarter 2012 guidance, I would like to update you on the payment of our announced recurring dividend payout. Based on the company 2011 non-GAAP net income of $284.1 million, a cash dividend of $0.0274 for ordinary shares or $0.137 per ADS was paid on April 16, 2012 to shareholders on record as of the close of business on March 30, 2012 and a cash dividend of $0.0272 per ordinary shares or $0.136 per ADS was paid on July 16, 2012 to shareholders of record as of the close of business on July 10, 2012. Meanwhile, the Board has approved a cash dividend of $0.0272 per ordinary share or $0.136 per ADS to be payable on October 16th to shareholders of record as of close of business on September 28, 2012. Read the rest of this transcript for free on seekingalpha.com