TOM Online reports 10% rise in 1Q net income

11 May 2005

TOM Online, a leading provider of wireless internet services in China and a subsidiary of Chinese language media group TOM Group, has reported profits of USD9.2 million for the three months to 31 March, up 10% on the corresponding period of 2004, thanks to lower operating expenses. Turnover rose 36% year-on-year from USD26 million to USD35.3 million, with the company predicting revenue growth of between 5% and 10% to USD37.5 million for 2Q.

TOM Group is backed by Hong Kong tycoon Li Ka-shing and was listed on the NASDAQ exchange last year. Its TOM Online unit is striving to position itself as a leading player in China’s wireless internet access market where, like its rivals, it repackages and resells VAS supplied by the country’s leading cellular network operator, China Mobile. TOM Online provides services such as SMS, multimedia messaging, ringtones, WAP downloads and interactive voice responses (IVR) and now claims to have eclipsed former market segment leader Sina Corp in terms of total revenues.

China