Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Dick Wei with J.P. Morgan. Go ahead, please.
Dick Wei - J.P. Morgan
Good morning, Michael and Jimmy. Just a question on regarding the strategy of the company. I guess with the termination of the contract with Qinghai Satellite TV, are you still going to continue with the Tianjin Satellite TV? And how should we think about the advertising revenue going forward? Should it reduce down to zero by the end of the year or is it -- how should we think about that?
Jimmy Lai
The Qinghai Satellite TV is very much different than the Tianjin project. The structure, the economic arrangement, and the project itself is very much different. The reason we terminated Qinghai is after the MNC investment, we take a very close look into the near-term and mid-term profitability of this project and we determined that it’s difficult to break even, even in mid-term levels, so we make the conscious decision to terminate this contract.
As to the Tianjin Satellite TV, currently we are still very optimistic about this project and we will continue this sales project. This doesn’t mean that the end of our cross-media strategy with the termination of the Qinghai Satellite TV. If we see one that makes economic sense and fit into our strategy, we’ll continue to do it.
Does that answer your question?
Dick Wei - J.P. Morgan
Yes. If you can also remind us what kind of business model that you have with Tianjin Satellite TV -- is it mainly more just as a traditional agency type of business or is it mainly wireless related type of advertising on the Tianjin TV as well, that would be helpful. Thanks.
Jimmy Lai
As we announced previously in our announcement, the Tianjin Satellite TV project is a purely advertising arrangement where we have the so-called non-[four-eight], non-infomercial advertising, exclusive advertising rights from Tianjin Satellite TV, so that is the arrangement we have with Tianjin Satellite TV.
Dick Wei - J.P. Morgan
Okay. In this sense, are you going to -- are you thinking to go after more of the other satellite TV stations as well going forward?
Jimmy Lai
We will look into that and if we see a project that fits into the economic criteria that we set internally and then we will seriously consider it. But like I said, the current company’s management focus is to return the company back to profitability, so any project we undertake has to meet this criteria.
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