Earnings: China’s Tom Online In Losses; Revenues Fall 30 Percent

Tom Online (Nasdaq: TOMO), the Chinese online portal and mobile content firm, reported a Q2 loss as revenues from mobile service and online advertising plunged. It posted a loss of $9.6 million, compared with a profit of $11.8 million in the year-earlier quarter. Revenues fell more than 30 percent to $34.4 million. This points to the same endemic issues with Chinese mobile regulatory scenario and its effect on content providers.

Sector wise, wireless Internet service revenues were $30.24 million, a 32.9 percent decrease from the same period last year. These revenues made up 87.9 percent of its total quarterly revenues. As to what happened, well, China Mobile and China Unicom control the interface, and customers…starting May, they started to display a reminder of fees to WAP users. Also, China Mobile also began promoting only its content services in their handsets.

More gruesome details in the release.

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