China Internet Cafe Holdings, 11/21/11
Chinese internet cafe operator China Internet Cafe Holdings Group (CICC) (OTCBB: CICC) today announced its financial results for the third quarter ended September 30, 2011, with net revenue up 47% to USD 8.6 mln, compared to USD 5.8 mln in Q3 2010. The increase was mainly due to the revenue generated by the 13 new cafes opened in the first three quarters of 2011.
Net income attributable to common shareholders for the three months ended September 30, 2011 was USD 2.3 mln, up 42% YoY.
Revenue growth from locations opened at least one year was 1.3% and represented approximately USD 4.2 mln in total revenues.
In the quarter ended September 30, 2011, CICC issued over 182,000 membership cards, a 282.8% increase from 47,000 in the third quarter 2010. CICC's active customers, users who have used a CICC IC card during the corresponding period, increased 282.8% YoY to 91,000.
During the first nine months of 2011, CICC opened 13 new locations, bringing the total number of cafes to 57. The average capital expenditure to open a new store varies by size and location but typically average USD 250,000. With average annual revenue per store of USD 500,000 and a 28% net margin, the average payback period is less than 2 years.
To view CICC's full earnings report, please click here.