Cinderella Media Group Limited updated group earnings guidance for the six months ending June 30, 2014. As mentioned in the profit warning announcement, the group's profit for the six months ending June 30, 2014 is expected to record a significant decrease due to the de-consolidation of 1010 group; and the decrease in advertising income in the Inflight Magazine division. The adverse factors as mentioned in the profit warning announcement have persisted.

The group still expects a significant decrease in profit of the continued operations due to the decrease in advertising income in the Inflight Magazine division. The unaudited turnover of the Inflight Magazine division for the six months ending June 30, 2014 is expected to decrease by approximately 15% as compared to the same period last year. The profit margin of the Inflight Magazine division is also expected to decrease significantly because fixed direct and indirect costs have not decreased correspondingly with the income.

The Board update the shareholders of the company and potential investors that the group expects to record a one-off special gain upon recognizing the difference between the carrying amount of the net assets of 1010 Group and the fair value of the distribution in specie of shares in 1010 Group to the shareholders. The one-off special gain is a non-cash item and will offset to a significant extent the negative impact on the group's profit caused by the factors stated in the profit warning announcement. Therefore the results for the six months ending June 30, 2014 are not expected to be as bad as previously envisaged.