Live by spam, die by spam. Just weeks after China Focus Media Holding (NSDQ: FMCN) found itself in trouble with the Chinese authorities for regularly carpet bombing some 200 million mobile phone users of China Mobile and China Unicom with unwanted text ads, the company has been forced to cut its earnings and revenue forecast for 2008, putting the blame squarely on a decline in mobile ad revenue after it agreed to ban spam. 

Focus said they expect the full year revenue for their wireless business will range from $14.0 million to $15.8 million--or a whopping $40 million less than the previously announced range of $54 million to $55.8 million. The company also said it expects 2008 revenues for the entire company to come in at $860 million to $890 million, compared with its previously announced target of $900 million to $930 million. Executive chairman Jason Jiang tried to reassure the market reporting that all of the company’s other businesses, including digital out of home and internet advertising were “performing strongly.” He also said the company would focus on building a “pull-based advertising model” for their mobile business, and would only send ads to those consumers in China who had given their explicit consent (release).

• Chinese Government Cracking Down On Spam