Tom Online (TOMO) has announced its financial results for the first quarter ended March 31, 2005, and it showed total revenues grow 36% from the same period in 2004 to US$35.3 million for the quarter and up 2% from the previous quarter.

Net income grew 10% from the same period in 2004 to US$9.2 million and up 12% from the previous quarter, and wireless Internet revenue increased by 40% to US$33.4 million from the same period last year and was up 5% compared to the previous quarter

Revenue from Voice-based services, including Interactive Voice Response (IVR) and Ringback Tone (RBT), increased 93% to US$11 million from the same period last year and was up 22% from the fourth quarter of 2004.

Gross cash and marketable securities totaled US$188.1 million at the end of the quarter.

Gross profit registered a 3% increase at US$13.9 million in the quarter from the same period in 2004 but it declined 9% quarter on quarter. Gross margin was 39% during the quarter compared to 52% for the same period in 2004 and 44% for the fourth quarter of 2004. Tom Online says the decline in margins was mainly the result of higher network transmission cost as the volume of messages increased, and lower than expected revenue confirmation rates in its SMS and MMS product lines. To a lesser extent, gross margin was also impacted by higher content and marketing costs, as the Company built closer relationships with both media partners and end users.

Total operating expenses for the first quarter of 2005 were US$5.8 million, representing an increase of 14% from the same period in 2004 but a decrease of 29% quarter on quarter. Lower expense levels were partly due to a reduction in amortization expenses of intangibles related to prior acquisitions. Operating income declined 4% from the same period last year to US$8.1 million but it was up 13% quarter on quarter as the wireless Internet industry stabilizes from past mobile operator regulatory activities.

LEAVE A REPLY

Please enter your comment!
Please enter your name here