Proving once again that the wireless services business in China is extremely tough, Chinese Internet portal and wireless value-added services firm Tom Online (TOMO) has seen total revenues decline for the second quarter ended June 30, 2007, including a 5% quarterly drop in its mobile revenue.
Its net loss included a goodwill impairment charge on its wireless Internet business of US$6.82 million and its share of losses from the Tom Eachnet Joint Venture of US$3.95 million. Excluding goodwill impairment charge of US$6.82 million, Non-GAAP net loss was US$2.74 million. Net loss for the quarter was US$9.56 million compared to net income of US$11.75 million a year ago and net income of US$0.15 million in the first quarter of 2007.
Total revenues were US$34.39 million, a decrease of 30.4 percent from the same period last year and a decrease of 2.1 percent from the last quarter. Wireless Internet service revenues were US$30.24 million, representing a 32.9 percent decrease from the same period last year and a 5 percent decrease from the previous quarter. Wireless Internet service revenues made up 87.9 percent of Tom's unlucky total quarterly revenues.
Online advertising revenues only accounted for US$3.38 million, representing a 13.2 percent decrease from the same period last year but a 27.0 percent increase from the previous quarter. Online advertising revenues made up 9.8 percent of total quarterly revenues.