(Associated Press via NewsEdge) Chinese Internet portal Tom Onlinesaid its third quarter earnings fell 59 % after policy changes by mobile phone companies cut revenues for its wireless service.
Net income was $5.3 million, down from $12.9 million in the same period last year, the company said. It said third quarter revenues fell 15.2% to $39 million.
Revenues for Tom's games, short messages and other wireless services fell 19.6% to $34.7 million due to policy changes by China's mobile phone companies, the company said.
China's mobile carriers tightened controls over wireless services this year in response to customer complaints, requiring free trials for new offerings and other restrictions.
That has cut into revenues for all of China's value-added service providers.
Tom was especially hard-hit because wireless accounted for 89% of its total quarterly revenues. Other Chinese portals make a bigger share of their money from advertising or online games.
Tom said gloom for wireless services should continue through the fourth quarter, with revenues expected to drop to $34.5 million to $35.5 million.
In other areas, third-quarter online advertising revenues were down 9.2% at $3.5 million, the company said.
The company also has launched a venture with Internet-based phone provider Skype, and said it had 23.5 million registered users at the end of October. Tom said it hopes to begin producing revenue from the venture in early 2007.
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