By staff reporter Ma Jingying

(Caijing.com.cn) Digital advertising company Focus Media Holding Ltd. said it plans to sell part of its Internet and outdoor advertising business in the third quarter as part of restructuring.

The company disclosed the plan in its second-quarter earnings report. No further details were provided.

Focus Media posted a net loss of US$22.7 million in the second quarter, or US$0.18 per American depository share, compared with a net loss of US$5.7 million, or US$0.04 per ADS, in the first quarter, the company said in a Sept. 18 statement.

Revenue for continuing operations rose 23 percent quarter-on-quarter to US$82.1 million, while revenue from discontinued operations increase 39 percent from the first quarter to US$89.2 million.

Net loss from continuing operations expanded to US$44.3 million in the second quarter from US$17.7 million in the first quarter, due to a falling gross margin and US$29.3 million worth of writedowns, the statement said.

For the third quarter, Focus Media expects revenue from continuing operations to reach US$46-47 million, while revenue from discontinued operations will be US$80-$81.5 million.

The company said it is considering altering the terms on the proposed US$1.4 billion merger with Sina Corp. (Nasdaq: SINA), China's leading Internet portal, if the transaction does not receive government approval before the end of September.

China's commerce ministry has repeatedly put off reviewing the deal since it was announced in December, and has asked both companies to supply documents related to anti-monopoly review.

1 yuan = 14 U.S. cents

Full article in Chinese: http://www.caijing.com.cn/2009-09-18/110254600.html