The performance of Tom Online's mobile division continued to suffer in 4Q 2006, with revenues falling by 11.9 per cent on the previous quarter and 32 per cent year-on-year.
The China-based Internet giant attributed the slump to the same tightening of regulations by China Mobile and China Unicom that have afflicted competitors like Monstermob.In fact, Tom said that excluding the contribution of content subsidiary Beijing Infomax - which it bought in the middle of 2006 - its wireless Internet business would have declined even more on a YoY comparison.
4Q06 revenues came in at $29.6 million, compared to $33.6 million in 3Q and $43.5 million in 4Q05. Wireless revenues for the year came in at $152.6 million, down 3.3 per cent on 2005.
Looking at specific products, SMS revenues in 4Q06 were S$9.44 million, down 33.6 per cent QoQ and 47 per cent YoY. SMS accounted for 31.9 per cent of Tom's total wireless revenues for the quarter.
MMS revenues for 4Q06 were $2.38 million, up 14.4 per cent QoQ, but down 45.8 per cent YoY. Interestingly, the company believes that MMS is a 'transitory' product category and does not expect it to be a key driver in going forward.
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WAP revenues for 4Q06 were $7.32 million, representing a 1.1 per cent decrease QoQ and a 9.3 per cent decrease YoY.
Tom said its WAP business has stabilised from the previous quarter as it shifted the bulk of the business to usage-based services from to subscription-based services to mitigate ongoing impact from the aforementioned operator policies.
