2007'02.01.Thu
TOM Online Reports 4Q 2005 Net Profits Up 55% Year on Year
March 17, 2006
Positioned as the Leader in the China Wireless Internet Market and 3G
HONG KONG, March 17 /Xinhua-PRNewswire/ -- TOM Online
Inc., (Nasdaq: TOMO; Hong Kong GEM: 8282) ("TOM
Online" or the "Company"), a leading
wireless Internet company in China, announced today its
financial results for the fourth quarter and full year
ended December 31, 2005.
The Company reported that 4Q 2005 Net Profits were up
55% year on year (YoY) and that fiscal 2005 revenues were
up 40 percent year on year as it continued to solidify its
position as the leading wireless Internet firm in mainland
China.
Fiscal 2005 Financial Highlights:
-- Total revenues were US$172.11 million
("mn"), an increase of 40% from
2004.
-- Wireless Internet revenues were US$161.88 mn,
representing a 43.4%
increase from the previous year.
-- Online advertising revenues increased to US$9.21 mn,
representing a
21.5% increase over 2004.
-- Net Income was US$45.01 mn, up 32.7% from the
previous year.
-- Basic and fully diluted earnings per American
Depository Share ("ADS")
for 2005 were US$87.7 cents and US$85.4 cents,
respectively, or US$1.10
cents and US$1.07 cents per common share,
respectively.
-- Balance of cash, short-term bank deposits and
marketable securities was
approximately US$140.25 mn as of December 31, 2005.
Fourth Quarter 2005 Financial Highlights:
-- Total revenues were US$ 48.12 million
("mn"), an increase of 39.5% from
the same period last year and up 4.7% from the
previous quarter.
-- Wireless Internet revenues were US$ 44.62 mn,
representing a 39.6%
increase over the same period last year and a 3.4%
increase over the
previous quarter. Wireless Internet revenues made
up 92.7% of the
Company's total fourth quarter revenues.
-- Online advertising revenues were US$ 3.2 mn, an
increase of 57.4% from
the same period last year and up 23.5% from the
previous quarter.
-- Net Income was US$ 12.72 mn, an increase of 55.1%
from the same period
last year but a decrease of 1.3% from the last
quarter as the RMB
appreciated slower in the fourth quarter than in the
previous quarter.
Excluding this factor, the Net Income increased
almost 8% from the last
quarter.
-- Basic and fully diluted earnings per American
Depository Share ("ADS")
were US$24.16 cents and US$23.85 cents,
respectively, or US$0.302 cents
and US$0.298 cents per common share, respectively.
Wang Lei Lei, TOM Online Chief Executive Officer and an
Executive Director, said: "Through better operational
efficiency and team efforts, TOM Online has been able to
further consolidate its leadership in the wireless internet
industry in 2005, which has in turn helped us achieve our
growth targets and establish a credible reputation in the
industry and among its partners. I believe 2006 will hold
more successes for us."
Fourth Quarter 2005 Business Results
The Company's unaudited consolidated revenues for the
three months ended December 31, 2005 were US$48.12 mn, an
increase of 39.5% over the same period in 2004 and an
increase of 4.7% quarter on quarter ("QoQ").
Gross profit was US$21.37 mn, representing an increase
of 39.4% over the same period last year and a 5.5% increase
QoQ. Gross margins stabilized at 44.4% from 44.1% in the
previous quarter, as benefits from sustained higher
confirmation rates in the Company's SMS business and
increased contribution from its online advertising business
offset increasing channel and content costs.
Operating income was US$12.14 mn, up 70.9% from the
same period last year and 5.7% higher than the previous
quarter. Operating margins stabilized at 25.2% from 25.0%
in the previous quarter.
During the fourth quarter, the Company increased its
sales and marketing activities to US$2.78 mn from US$1.76
mn in the third quarter, representing a 57.3% sequential
increase, but only a 19.6% YoY increase, as it usually
increases its sales and marketing activities in the fourth
quarter of each year.
For the fourth quarter, net interest income increased
to US$0.57 mn from US$0.27 mn in the third quarter.
Fourth quarter EBITDA ("Earnings before Interest,
Taxes, Depreciation and Amortization") were
US$14.22mn, an increase of 40.1% YoY and 5.3% higher QoQ.
EBITDA margins were 29.5% for the fourth quarter, roughly
in-line with EBITDA margins in the third quarter, which
were at 29.4%.
Net income was US$12.72 mn, an increase of 55.1% YoY
but a decrease of 1.3% QoQ as the RMB appreciated slower in
the fourth quarter than in the previous quarter. Excluding
this factor, the net income increased almost 8% from the
last quarter. Net income margins declined sequentially to
26.4% in the fourth quarter from 28.0% in the previous
quarter during which the Company had a US$1.13 mn benefit
from the appreciation of RMB.
US GAAP basic earnings per ADS were US$24.16 cents for
the quarter. US GAAP basic earnings per Hong Kong ordinary
share were US$0.302 cents for the quarter. Shares used in
computing US GAAP basic earnings per ADS were 52.65 mn and
shares used in computing US GAAP basic earnings per Hong
Kong ordinary share were 4,212.07 mn.
US GAAP diluted earnings per ADS were US$23.85 cents
for the quarter. US GAAP diluted earnings per Hong Kong
ordinary share were US$0.298 cents for the quarter. Shares
used in computing US GAAP diluted earnings per ADS were
53.32 mn and shares used in computing US GAAP diluted
earnings per Hong Kong ordinary share were 4,265.83 mn.
The Company's balance of cash, short-term bank deposits
and marketable securities was approximately US$140.25 mn as
of December 31, 2005.
Wireless Internet Services
Total wireless Internet service revenues were US$44.62
mn for the fourth quarter of 2005, an increase of 39.6%
from the same period last year and a 3.4% increase QoQ.
Wireless Internet revenues made up 92.7% of the Company's
total revenues in the fourth quarter, down slightly from
93.9% in the previous quarter.
During the quarter, the Company continued to develop
its leadership in the mainland Chinese wireless Internet
market and continued to focus on longer-term business
opportunities which build upon its wireless and online
operations and assets. Key activities in the quarter
included:
1) Continuing to develop alliances with media partners
in TV, radio and
print to more effectively market TOM Online's
wireless services, such
as 2.5G services and IVR, as well as broaden the
awareness of its brand
with consumers. The Company believes its scale and
diversification in
wireless distribution channels are a key competitive
advantage. Through
these platforms, the Company believes it is well
positioned for
opportunities in 3G.
2) Continuing to promote its "Wanleba"
Internet music brand, which
leverages "tom.com" portal's ability to
allow singers/songwriters to
take advantage of its mobile distribution channels.
During the quarter,
the Company announced that it was partnering with
Intel to jointly
promote their Internet cafe initiatives and
"Wanleba" at various
locations across mainland China. The Company
believes mobile music
will continue to be an important driver for its
growth in 2006.
SMS ("Short Messaging Service") revenues in
the quarter were US$17.80 mn, up 60.0% YoY but roughly flat
QoQ (SMS revenues were US$17.62 mn in 3Q05). SMS revenues
made up 39.9% of the Company's total wireless Internet
revenues in the fourth quarter. Its SMS business
stabilized from third quarter levels as the benefits from
higher revenue confirmation rates it received from mobile
operator partners normalised quarter on quarter. While SMS
is a more mature business line for TOM Online, the Company
believes it will continue to be a core contributor to its
overall wireless Internet business for the foreseeable
future.
MMS ("Multimedia Messaging Service") revenues
for the quarter were US$4.40 mn, down 23.0% YoY, but up
42.8% QoQ. MMS revenues made up 9.9% of the Company's
total wireless Internet revenues in the fourth quarter. On
a YoY perspective MMS revenues declined due to the migration
of MMS onto the new MISC platform earlier this year.
However, MMS revenues rebounded strongly in the fourth
quarter from the preceding quarter as some provincial
operators actively promoted MMS services while the Company
was a partner in those activities. However, the Company
continues to believe that MMS over the medium-term is a
transitory product category.
WAP ("Wireless Application Protocol")
revenues for the quarter were US$8.06 mn, up 31.8% YoY, but
down 3.6% QoQ. WAP revenues made up 18.1% of the Company's
total wireless Internet revenues in the fourth quarter. A
small portion of WAP revenues declined sequentially in the
quarter due to a slowdown in a mobile operator partner's
CDMA subscriber base. WAP revenues from China Mobile were
stable as strong product cycles, including song downloads
from new Jay Chou album on the operator's Monternet
platform, were offset by continued "silent user"
clean-up activities.
IVR ("Interactive Voice Response") revenues
for the quarter were US$10.88 mn, representing an increase
of 60.1% YoY and a 3.5% rise QoQ. IVR revenues made up
24.4% of the Company's total wireless Internet revenues in
the fourth quarter. During the quarter, the Company
migrated some of its IVR infrastructure to a new data
centre and experienced some temporary technical issues.
This led to a slight slowdown in its IVR business than
would have otherwise occurred during normal operation. With
this issue resolved and a continued focus on broadening the
reach of the Company's wireless Internet services to
consumers through TV alliances, the Company continues to
see its IVR business as a key driver of its overall
business in 2006.
CRBT ("Colour Ringback Tones") revenues for
the quarter were US$2.30 mn, up 4.8% YoY but down 1.0% QoQ.
CRBT revenues made up 5.2% of the Company's total wireless
Internet revenues in the fourth quarter. In the previous
quarter, the Company initiated a number of CRBT promotions
in conjunction with its mobile operator partners to spur
consumer awareness and usage. Sequential growth was
negatively impacted as a result. The Company continued to
pursue such promotions in the fourth quarter and will
continue to do so for the foreseeable future.
Revenues from other wireless Internet services, which
primarily consist of the Company's Indiagames subsidiary,
were US$1.18 mn, representing a decline of 6.9% from the
previous quarter. As the Company only consolidated
Indiagames in early 2005 YoY comparisons are not possible.
The decline in its Indiagames subsidiary was primarily due
to the migration of Indian mobile operators to new billing
platforms, similar to what TOM Online experienced in the
mainland China market in the past. The Indian market made
up roughly 50% of Indiagames revenues in the 3rd and 4th
quarter. TOM Online believes this transition may take
another few quarters to complete, but its impact should be
offset by growth opportunities in the mainland China,
European and North American markets.
Moreover, the Company intends to supplement its
existing mainland Chinese wireless Internet business and
Indigames mobile games business in 2006 by building a
China-based mobile game team to take advantage of the
growth opportunities it sees in mobile games in mainland
China.
Online Advertising
Online advertising revenues for the fourth quarter were
US$3.2 mn, representing an increase of 23.5% QoQ and 57.4%
YoY due to continued efforts to focus sales efforts on key
channels on the Company's portal. The Company continued to
promote its "Wanleba" online music brand in the
quarter. It believes these activities are not only raising
awareness with the China Internet community but amongst
advertisers as well.
In addition to its focus on entertainment and music
content, the Company also intends to more closely develop
sports content and alliances in 2006 to take advantage of
this year's activities around the FIFA World Cup in
Germany, amongst others, to enhance sales opportunities on
its portal. More importantly the move will provide
additional services and content for the Company's wireless
Internet business.
Jay Chang, Chief Financial Officer and an Executive
Director of TOM Online, commented: "We're pleased with
our results for the year which saw record net profits but
more importantly demonstrated solid revenue growth based on
our diversified wireless Internet revenue model."
NEW BUSINESS OPPORTUNITIES UPDATE
Skype JV Update
At the end of February, the Company had more than 9 mn
registered TOM-Skype users, up from over 5.2 mn registered
users at the end of October 2005. Mainland China is now
Skype's second largest market after the United States. The
Company continues to work with Skype to co-develop more
local features and services for the mainland China market
as well as premium services over the TOM-Skype platform.
It is hoped that some of the services will be commercially
launched in the later part of 2006.
UMPay Alliance Update
The Company continues to work with UMPay to develop
China's mobile payment market as a longer term opportunity.
As such, for most of 2006, the Company will seek to jointly
develop and enhance the user experience and business plan
with UMPay while UMPay will continue to build out the
infrastructure and platforms to support mobile payments
which is integrated with the banking sector. During the
fourth quarter, TOM Online conducted a pilot launch in
which users could use their mobile phones to make payments
at selected restaurants in Beijing. It is also working on
linking the UMPay system to support online payments. At
the end of 2005, UMPay had about 6.0 mn subscribers and
over 200 merchants on their platform.
BUSINESS OUTLOOK
The following business outlook is based on current
information and expectations as of March 17th, 2006. For
the first quarter of 2006 the Company expects total
revenues to be between US$47.7 mn and US$48.5 mn.
Starting in the first quarter of 2006, the Company will
begin expensing costs related to employee stock compensation
due to the adoption of the Statement of Financial Accounting
Standard 123R, "Share-Based Payment." Based on
unvested shares as of the end of 2005, and excluding any
new shares that may be granted, the Company estimates that
the impact to the first quarter of 2006 would be in the
range of US$0.9 mn to US$1.1 million.
Conference Call
Following the announcement, TOM Online's management
team will host a conference call at 7:00 AM EST (8:00 PM
Hong Kong time) on March 17, 2006 to present an overview of
the company's financial performance and business operations.
The dial-in numbers for the call are:
Australia: 1-800-750-079; China A (China Netcom
subscribers): 10800-852-0823; China B (China Telecom
subscribers): 10800-152-0823; Hong Kong: +852-2258-4002;
India: 000-800-852-1133; Singapore: 800-852-3412; United
Kingdom: 0800-096-7428; USA: 877-542-7993.
Password: TOM Online.
The conference call will also be webcasted live on
http://ir.tom.com . An audio replay of the call can be
accessed by dialing +852-2802-5151; passcode: 759560. The
call will be archived for seven days.
About TOM Online Inc.
TOM Online Inc. (Nasdaq: TOMO, Hong Kong GEM: 8282) is
a leading wireless Internet company in China providing
value-added multimedia products and services. A premier
online brand in China targeting the young and trendy
demographics, the company's primary business activities
include wireless value-added services and online
advertising. The company offers an array of services such
as SMS, MMS, WAP, wireless IVR (interactive voice response)
services, content channels, search and classified
information, and free and fee-based advanced email. As at
December 31, 2005, TOM Online is the only portal in China
that enjoyed a top three ranking in every wireless Internet
segment.
Forward Looking Statements
This document contains statements that may be viewed as
"forward-looking statements" within the meaning of
Section 27A of the United States Securities Act of 1933, as
amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended. Such forward-looking
statements are, by their nature, subject to significant
risks and uncertainties that may cause the actual
performance, financial condition or results of operations
of the Company to be materially different from any future
performance, financial condition or results of operations
implied by such forward-looking statements. Such
forward-looking statements include, without limitation,
statements that are not historical fact relating to the
financial performance and business operations of the
Company in mainland China and in other markets, the
continued growth of the telecommunications industry in
China and in other markets, the development of the
regulatory environment and the Company's latest product
offerings, and the Company's ability to successfully
execute its business strategies and plans.
Such forward-looking statements reflect the current
views of the Company with respect to future events and are
not a guarantee of future performance. Actual results may
differ materially from information contained in the
forward-looking statements as a result of a number of
factors, including, without limitation, any changes in our
relationships with telecommunication operators in China and
elsewhere, the effect of competition on the demand for the
price of our services, changes in customer demand and usage
preference for our products and services, changes in the
regulatory policies by relevant government authorities, any
changes in telecommunications and related technology and
applications based on such technology, and changes in
political, economic, legal and social conditions in China,
India and other countries where the Company conducts
business operations, including, without limitation, the
Chinese government's policies with respect to economic
growth, foreign exchange, foreign investment and entry by
foreign companies into China's telecommunications market.
Please also see "Item 3 - Key Information - Risk
Factors" section of the Company's annual report on
Form 20-F as filed with the United States Securities and
Exchange Commission.
Consolidated Balance Sheets
December 31
2004 2005
(in
thousands of U.S.
dollars)
Assets
Current Assets:
Cash and cash equivalents
79,320 99,869
Short-term bank deposits
-- 1,863
Accounts receivable, net
26,369 33,950
Restricted cash
-- 300
Prepayments
4,116 6,053
Deposits and other receivables
2,343 2,503
Due from related parties
159 189
Inventories
113 53
Total current assets
112,420 144,780
Available-for-sale securities
116,471 38,519
Restricted securities
-- 59,122
Investment under cost method
1,494 1,494
Long-term prepayments and deposits
240 132
Property and equipment, net
11,927 15,346
Deferred tax assets
348 521
Goodwill, net
158,494 184,678
Intangibles, net
1,707 1,415
Total assets
403,101 446,007
Liabilities and shareholders' equity
Current liabilities:
Accounts payable
2,778 5,031
Other payables and accruals
10,834 16,002
Income tax payable
543 569
Deferred revenues
122 69
Consideration payable
133,613 16,615
Due to related parties
20,331 19,430
Total current liabilities
168,221 57,716
Non-current liabilities:
Secured bank loan
-- 56,099
Deferred tax liabilities
-- 182
Total liabilities
168,221 113,997
Minority interests
456 2,900
168,677 116,897
Commitments and Contingencies
Shareholders' equity:
Share capital
4,995 5,416
Paid-in capital
260,867 312,643
Statutory reserves
9,452 11,396
Accumulated other comprehensive losses
(670) (3,187)
Accumulated (deficit)/income
(40,220) 2,842
Total shareholders' equity
234,424 329,110
Total liabilities, minority interests and
shareholders' equity
403,101 446,007
Consolidated Statements of Operations
Year
ended December 31,
2003
2004 2005
(in thousands
of U.S. dollars)
Revenues:
Wireless internet services 55,843
112,880 161,879
Advertising 5,845
7,583 9,210
Commercial enterprise solutions 13,825
2,189 1,025
Internet access 1,560
68 --
Total revenues 77,073
122,720 172,114
Cost of revenues:
Cost of services (32,794)
(63,966) (98,816)
Cost of goods sold (11,291)
(791) --
Total cost of revenues (44,085)
(64,757) (98,816)
Gross profit 32,988
57,963 73,298
Operating expenses:
Selling and marketing expenses (2,772)
(7,695) (7,718)
General and administrative
expenses (9,133)
(12,385) (22,048)
Product development expenses (689)
(886) (1,528)
Amortization of intangibles (629)
(5,614) (975)
Provision for impairment of
intangibles --
(307) --
Total operating expenses (13,223)
(26,887) (32,269)
Income from operations 19,765
31,076 41,029
Other (expenses)/income:
Net interest (expenses)/income (320)
3,095 2,661
Exchange gain --
-- 1,132
Gain on disposal of
available-for-sale securities --
-- 450
Loss on issue of shares by a
subsidiary --
-- (69)
Income before tax 19,445
34,171 45,203
Income tax credit 254
41 24
Income after tax 19,699
34,212 45,227
Minority interests (127)
(304) (221)
Net income attributable to
shareholders 19,572
33,908 45,006
Earnings per ordinary share- basic
(cents): 0.70
0.94 1.10
Earnings per ordinary share-
diluted (cents): N/A
0.85 1.07
Earnings per American Depositary
Share - basic
(cents): 55.9
75.2 87.7
Earnings per American Depositary
Share - diluted
(cents): N/A
68.4 85.4
Weighted average number of shares
used in computing Earnings Per Share:
Ordinary share- basic 2,800,000,000
3,608,743,169 4,107,485,514
Ordinary share- diluted 2,800,000,000
3,967,558,949 4,217,527,395
American Depositary Share -
basic N/A
45,109,290 51,343,569
American Depositary Share -
diluted N/A
49,594,487 52,719,092
Consolidated Statements of Shareholders'
(Deficit)/Equity
Number of Share
Paid-in Statutory
Shares
Capital Capital Reserves
(in thousands of
U.S. dollars except
for number
of shares)
Balance as of January 1, 2003 2,800,000,000
3,590 93,184 1,552
Contribution from shareholders (*) --
-- 1,157 --
Net income --
-- -- --
Reorganization adjustment (#) --
-- (18,790) --
Balance as of December 31, 2003 2,800,000,000
3,590 75,551 1,552
Issuance of shares pursuant to
initial public offering 1,000,000,000
1,282 192,528 --
Share issuing expenses --
-- (25,589) --
Issuance of shares to Cranwood as
initial purchase consideration for
acquisition of Puccini Group (note
6) 96,200,000
123 18,377 --
Unrealized loss on securities --
-- -- --
Net income --
-- -- --
Appropriation to statutory reserves --
-- -- 7,900
Balance as of December 31, 2004 3,896,200,000
4,995 260,867 9,452
Issuance of shares to Cranwood as
earn-out consideration for
acquisition of Puccini Group 304,155,503
390 47,157 --
Issuance of shares on exercise of
employee stock options 24,176,602
31 4,619 --
Unrealized loss on securities (**) --
-- -- --
Exchange gain --
-- -- --
Net income --
-- -- --
Appropriation to statutory reserves --
-- -- 1,944
Balance as of December 31, 2005 4,224,532,105
5,416 312,643 11,396
* Contribution from shareholders primarily represents
contribution of
working capital as well as allocation of certain
corporate expenses.
# Reorganization adjustment for the year ended
December 31, 2003
represents the carve out of six non-core internet
business entities
from the Group in connection with the pre-initial
public offering
("pre-IPO") corporate reorganization
("Reorganization"), which was
completed on September 26, 2003.
** Including US$450,000 realized gain which has been
transferred out to
earnings upon disposal of securities.
Accumulated
other
comprehen-
Accumulated Total
dsive
(deficit) / shareholders'
losses
income (deficit) /
equity
(in thousands of
U.S. dollars except
for number
of shares)
Balance as of January 1, 2003 (55)
(107,735) (9,464)
Contribution from shareholders (*) --
-- 1,157
Net income --
19,572 19,572
Reorganization adjustment (#) --
21,935 3,145
Balance as of December 31, 2003 (55)
(66,228) 14,410
Issuance of shares pursuant to
initial public offering --
-- 193,810
Share issuing expenses --
-- (25,589)
Issuance of shares to Cranwood as
initial purchase consideration for
acquisition of Puccini Group (note
6) --
-- 18,500
Unrealized loss on securities (615)
-- (615)
Net income --
33,908 33,908
Appropriation to statutory reserves --
(7,900) --
Balance as of December 31, 2004 (670)
(40,220) 234,424
Issuance of shares to Cranwood as
earn-out consideration for
acquisition of Puccini Group --
-- 47,547
Issuance of shares on exercise of
employee stock options --
-- 4,650
Unrealized loss on securities (**) (2,903)
-- (2,903)
Exchange gain 386
-- 386
Net income --
45,006 45,006
Appropriation to statutory reserves --
(1,944) --
Balance as of December 31, 2005 (3,187)
2,842 329,110
* Contribution from shareholders primarily represents
contribution of
working capital as well as allocation of certain
corporate expenses.
# Reorganization adjustment for the year ended
December 31, 2003
represents the carve out of six non-core internet
business entities
from the Group in connection with the pre-initial
public offering
("pre-IPO") corporate reorganization
("Reorganization"), which was
completed on September 26, 2003.
** Including US$450,000 realized gain which has been
transferred out to
earnings upon disposal of securities.
Consolidated Statements of Cash Flows
Year
ended December 31,
2003
2004 2005
(in
thousands of U.S.
dollars)
Cash flow from operating activities:
Net income 19,572
33,908 45,006
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization of intangibles 629
5,614 975
Amortization of premium on debt
securities --
298 383
Provision for impairment of intangibles --
307 --
Allowance for doubtful accounts 1,487
761 691
Depreciation 3,016
4,544 6,977
Deferred income tax (274)
(74) 18
Exchange gain, net --
-- (1,132)
Interest on advances from TOM Group
Limited ("TOM Group") and its
subsidiaries 394
-- --
Corporate expenses recharged by TOM Group 923
-- --
Loss on disposal of property & equipment
91 9 94
Gain on disposal of available-for-sale --
--
securities
(450)
Loss on issuance of shares by a --
--
subsidiary
69
Minority interests 127
304 221
Change in assets and liabilities, net of
effects from acquisitions:
Accounts receivable (8,337)
(10,443) (5,764)
Prepayments (913)
(2,892) (1,144)
Deposits and other receivables (568)
69 (368)
Due from related parties 226
(35) (30)
Inventories 1,493
(84) 62
Long-term prepayments and deposits (361)
63 (82)
Accounts payable 623
(1,085) 1,684
Other payables and accruals 2,148
2,499 5,140
Income tax payable 2
24 (409)
Deferred revenues (1,320)
(374) (54)
Due to related parties 711
346 (879)
Net cash provided by operating activities 19,669
33, 759 51,008
Cash flow from investing activities:
Payments for purchase of property &
equipment (4,790)
(9,175) (9,843)
Short-term bank deposits --
-- (1,878)
Cash paid for entrusted loan provided to
a related party --
-- (2,461)
Cash received from a related party for
repayment of entrusted loan --
-- 2,461
Payments for purchase of intangible
assets --
(1,663) --
Payment for investment under cost method --
(1,494) --
Net cash acquired/ (used in) from
acquisition of subsidiaries 3,721
(14,884)(99,937)
Cash disposed with spin-off (1,689)
-- ] --
Payments for investment in
available-for-sale securities --
(118,883) --
Cash received on disposal of
available-for-sale securities --
-- 16,392
Net cash used in investing activities (2,758)
(146,099)(95,266)
Cash flow from financing activities:
Issuance of ordinary shares including
from the exercise of share options, net
of expenses --
169,024 4,650
IPO share issuing expenses --
-- (803)
Repayment to related parties (1,027)
-- --
Cash received from issuance of shares by
a subsidiary, net of issuing expenses --
-- 3,985
Bank loan, net of handling charges --
-- 56,886
Partial repayment of bank loan --
-- (901)
Net cash (used in)/provided by financing
activities (1,027)
169,024 63,817
Net increase in cash and cash equivalents 15,884
56,684 19,559
Cash and cash equivalents, beginning of year 6,752
22,636 79,320
Foreign currency translation --
-- 990
Cash and cash equivalents, end of year 22,636
79,320 99,869
Supplemental disclosures of cash flow
information
Cash (paid)/ received during the year:
Cash paid for income taxes (22)
(9) (208)
Interest received from bank deposit and
available-for-sale securities 74
3,985 5,552
Non-cash activities:
Property and equipment transferred from
TOM Group --
7 --
Property and equipment transferred to
subsidiaries of TOM Group 292
-- --
Contribution from shareholders 1,157
-- --
Issuance of shares to Cranwood for
acquisition of Puccini Group --
18,500 47,547
Outstanding payments for listing expenses 15,000
803 --
Unaudited Condensed Statements of Operations for 4Q
2005
4Q 04 3Q
05 4Q 05
(in thousands
of U.S. dollars)
Wireless Internet 31,948
43,158 44,615
Online advertising 2,032
2,590 3,198
Others 505
193 302
Total revenues 34,485
45,941 48,115
Cost of revenues (19,159)
(25,689) (26,747)
Gross profit 15,326
20,252 21,368
Operating expenses (8,220)
(8,759) (9,225)
Operating profit 7,106
11,493 12,143
Other income 1,139
1,406 572
Income tax (charge)/ credit (7)
106 30
Minority interest (38)
(123) (25)
Net income 8,200
12,882 12,720
For more information, please contact:
Rico Ngai
Investor and Corporate Communications
TOM Online Inc.
Tel: +86-10-6528-3399 x6940
Mobile: +86-139-118-95354
Skype: ricoinrio
SOURCE TOM Online Inc.
PR
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