According to the semi-annual report of Phoenix TV, the company realized revenue of HKD675 million in the first half of 2008, a year-on-year increase of 21.9%; and its interim net profits were HKD173 million, a year-on-year increase of 39.7%.
The report shows that the major sources for Phoenix's performance growth and net profit increase were the growths in advertising income and the technology service income. At the same time, because of the cost increases in labor, content creation and technological services, the overall operating costs of the company increased by 21.1% over the first six months of 2008.
As the major income resource of Phoenix, the revenue of television broadcasting accounted for 92.1% of the total revenue of the company, a year-on-year increase of 20.4%. The increase shows a rising demand for real-time and news programs among a Chinese-speaking audience.
In addition, the new media sector, which is still on its initial development stage, has become a new growth point for Phoenix. In the first half of 2008, this new business brought Phoenix HKD27.486 million, a year-on-year increase of 83.6%. Although this new business brings little profit, its prospect for development is broad. When the new media business becomes more stable, it will enlarge the company's financial base.