Company Anticipates Gross Revenues of US$28-US$32 Million
BEIJING, Oct. 29 /Xinhua-PRNewswire/ -- TOM Online Inc. (Nasdaq: TOMO;
Hong Kong GEM stock code: 8282), a leading wireless internet company in China,
today informed investors to exercise caution in trading its stock in view of
the recent significant stock price volatility and wishes to state that the
Company is not aware of any reason for such volatility. The Company wishes to
announce its preliminary expectations of its revenues for the third quarter
ended September 30, 2004, and its plans to report final results on November
10, 2004.
"While TOM Online continues to maintain its revenues and although we have
not been sanctioned by mobile operators, our interactive voice response
services (IVR) business has been impacted as we operate in the same
environment as companies in the sector who have been sanctioned," said Wang
Lei Lei, Chief Executive Officer and Executive Director of TOM Online. "While
we are not experiencing a double digit growth in revenues that we had
expected, after incorporating our Treasure Base acquisition effective mid-
August 2004, we expect our revenues to maintain and grow as we are seeing a
gradual stability in the overall market".
For the third quarter, TOM Online currently anticipates total revenues of
approximately US$28-US$32 million. This compares with the US$30.9 million
reported for the second quarter ended June 30, 2004, and with the company's
prior third-quarter outlook of 10-15% growth in total revenues from the second
quarter ended June 30, 2004. TOM Online attributed its revised revenue
expectations to lower than anticipated sales of IVR, due principally to a
slowdown of marketing and promotional activities for such products and
services in response to sanctions imposed by mobile operators on other
wireless value-added services providers. IVR services accounted for 28% of
the total wireless internet revenue in 2Q04 and although TOM Online has not
been sanctioned by mobile operators, it has experienced a decline in its third
quarter IVR revenues.
As TOM Online is also listed on the Growth Enterprise Market of The Stock
Exchange of Hong Kong Limited, it is prohibited by the Rules Governing the
Listing of Securities on The Stock Exchange of Hong Kong Limited to provide
guidance on net income.
TOM Online cautions that the anticipated third-quarter revenues discussed
in this news release are preliminary, based on currently available
information, and are subject to change.
Final Third-Quarter Results to be announced on November 10, 2004.
The company plans to report its final third-quarter results after the
close of the Hong Kong stock market on November 10, 2004. Management has
scheduled a press conference to be hosted at Jasmine Room, Mandarin Oriental
Hong Kong, 5 Connaught Road, Central, Hong Kong at 16:00 on November 10 (Hong
Kong time), followed by an analyst meeting at 17:30.
Following the announcement, TOM Online's management team will host a
conference call at 11:00 AM EST (23:00 Hong Kong, Perth Time), November 10,
2004 to present an overview of the company's financial performance and
business operations.
The dial-in number for the call is +10800-8520823 (China North),
+10800-1520823 (China South), +852-22584002 (Hong Kong), +0800-0967428
(United Kingdom), +877-542-7993 (the United States). The passcode is TOM
ONLINE.
The conference call will also be broadcasted live. Please visit
http://ir.tom.com .
A replay of the call will be available from November 11-17, 2004. To
access the replay, please dial +852- 2802-5151, then enter PIN 785590. The
press conference will be archived at http://ir.tom.com .
About TOM Online Inc.
TOM Online Inc. (Nasdaq: TOMO; Hong Kong GEM stock code: 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 demographic, the company's primary business activities include wireless
value-added services, online advertising and commercial enterprise solutions.
The company offers an array of services such as SMS, MMS, WAP, wireless
interactive voice response services, content channels, search and classified
information, free and fee-based advanced email and online games. As of June
30, 2004, TOM Online is the only portal in China that enjoyed a top three
ranking in every wireless value added service segment.
TOM Online is a subsidiary of TOM Group Limited ("TOM Group"), one of the
leading Chinese language media groups in the Greater China region. TOM Group's
diverse operations span five media sectors: the Internet (through TOM Online
Inc.), outdoor (through TOM Outdoor Media Group), publishing, sports and TV &
entertainment.
This announcement contains statements that may be viewed as "forward-
looking statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the 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, the continued growth of the telecommunications industry in China, the
development of the regulatory environment, and the Company's ability to
successfully execute its business strategies.
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 the regulatory policies of the Ministry of
Information Industry and other 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, including 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 the "Risk Factors"
section of the Company's registration statement on Form F-1 (File No.
333-112800), as filed with the Securities and Exchange Commission.
Media Enquiry:
Rico Ngai
TOM Online Inc.
+86 10 6528 3399 (ext. 6940)
+86-139-118-95354
ricongai@bj.tom.com
Wayne Fong
Weber Shandwick in Hong Kong
+852-25339914
wfong@webershandwick.com
Marilynn Meek
Financial Relations Board
Weber Shandwick in New York
+1-212-445-8451
mmeek@financialrelationsboard.com
SOURCE TOM Online Inc.
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Related links:
http://www.tom.com
http://ir.tom.com
CONTACT:
Media - Rico Ngai, TOM Online Inc.,
+86-10-6528-3399 ext. 6940, or +86-139-118-95354,
ricongai@bj.tom.com; or Wayne Fong, Weber Shandwick in Hong Kong,
+852-25339914, wfong@webershandwick.com, for TOM Online Inc.; or
Marilynn Meek, Financial Relations Board, Weber Shandwick in New
York, +1-212-445-8451, mmeek@financialrelationsboard.com, for TOM
Online Inc.
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