Boston, MA 09/29/2014 (wallstreetpr) – AirMedia Group Inc (ADR) (NASDAQ:AMCN)‘s subsidiary Meizheng Advertising Co., Ltd. (54% stake), recently, won the bidding process and entered into concession rights agreement with Shanghai Railway Culture and Advertising Development Co., Ltd. According to the agreement, Meizheng received the exclusive rights to install and operate Wi-Fi system in high-speed trains.
Wi-Fi systems – a growing business
Shanghai Railway Bureau selected Meizheng based on its prior experience in providing the similar services as said by Mr. Herman Guo, CEO of AirMedia Group Inc (ADR) (NASDAQ:AMCN). The State Administration is the largest railway bureaus of China and operates 269 groups of high-speed trains, and each group has eight passenger cars.
Mr. Herman also said that the Company submitted the test data on Wi-Fi system on high-speed trains for the approval of the bidding process. Meizheng already installed the Wi-Fi system on high-speed trains and operated by Guangzhou Railway (Group) Corporation in five major railway lines.
Growth prospects
AirMedia considers as the leading operator of outdoor advertising in China while targeting mid to high-end customers. The Company predominantly operates in air travel advertising and at the same time, it offers digital media network in railways through its subsidiary Meizheng.
Now, AirMedia Group Inc (ADR) (NASDAQ:AMCN) is strengthening its position in Wi-Fi business in flight as well as trains. The Company believes that the digital network remain as a one-stop solution in providing the Wi-Fi system and continues to expand its services across the markets including trains.
The Company is also looking for long-term growth opportunities while designing innovative products including interactive digital frames that can utilize the advantage of Wi-Fi network. So, AirMedia is strengthening the platform and portals for the Wi-Fi business on air and on train.
In addition to the concession agreement in Wi-Fi business, AirMedia also received the exclusive concession rights till 2020 to develop and operate the platform of outdoor advertising at Sinopec’s service stations across the China.
