Tom Group Registers Heavy Loss in First Half – Zhou Qiong

From Caijing.com.cn:

TOM Group (2383.HK) , a media controlled by Hong Kong tycoon Li Ka-shing, reported a net loss of 72.35 million Hong Kong dollars, and saw its total revenue fall to HK＄1.347 billion, 8.6% lower from a year earlier. The company posted its interim report on August 21, pointing to Tom Online as the principal culprit.

Tom Online was separated from the Tom group, and listed on the Hong Kong and NASDAQ markets in 2004 with Tom Group holding a 65.73% controlling stake. The loss partly came down to a change in policy from China Mobile (0941.HK), which hurt the company’s internet service profits. In July 2006, China Mobile launched a new policy, which sees all new customers for internet companies first enjoy a free month-long trial, and with SMS confirmation needed before charges are levied. [Full Text]