tom.com limited 2001 half-year results review

TOM.COM LIMITED2001 Half-Year Results Review

8th August 2001Hong Kong

2

Financial Highlights – Quarter On Quarter

For the 3 months period ended(HK$M) 30 Jun 01 31 Mar 01 % of Change

Revenue 145 77 89%

Gross Margin % 45% 51% 6%

Loss before interest, taxation,depreciation and amortisation 47 56 15%

Loss attributable to shareholders 78 70 11%

3

Financial Highlights – Year On Year

For the 6 months period ended(HK$M) 30 Jun 01 30 Jun 00 Change

Revenue 222 6 36 times

Operating Loss 119 198 40%

Loss attributable to shareholders 148 194 24%

4

Financial Performance

• 89% quarter-on-quarter revenue growth

• 101% growth in offline media revenue

• 55% growth in online media revenue

• 45% gross profit margin achieved

• 15% reduction in EBITDA loss

5

Q2 Revenue Breakdown

32

56

113

210

20

40

60

80

100

120

140

160

2001 Q1 2001 Q2

• Total revenue 89%

• Offline media 101%

• Online media 55%

UP 101%

UP 55%

Offline Media

Online Media

77

145

HK$ million

6

Key Revenue Drivers

Offline (HK$113M) Online (HK$32M)

Strong performance in outdoor and sports businesses

Outperformed competitors in a slow market with our:-

• focused sales efforts

• high online advertising sell-through

• product bundling

7

Strong Revenue Growth Momentum

13

70 77

145

0

20

40

60

80

100

120

140

160

2000 Q3 2000 Q4 2001 Q1 2001 Q2

HK$ million

CQGR 122

%

8

Q2 Reduction in EBITDA Loss

55.7

47.4

42

44

46

48

50

52

54

56

58

HK$ million

Loss before interest, taxation, depreciation & amortisation

down 15%

2001 Q1 2001 Q2

• Increased revenue base

• Attractive gross margin

9

Operational Performance

• Becoming China’s No.1 sports marketing company

• Building foundations of largest Chinese print media platform in Greater China

• Leading Chinese Internet market towards “fee-paying culture” -- launch of “TOMNET” Internet access card & 163.net’s pay e-mail service

• Sales force grew by 10% with additional designated agents in Fujian, Sichuan, Chaozhou, Shantou, Guizhou, Shenzhen and Hainan

10

Key Developments in Sports

China’s No. 1 Sports Marketing Company

• Owns the largest number of national sports commercial rights through YC Companies in China

• Secured Chinese Basketball Association (CBA) rights after fierce competition

• Secured marketing rights to Chinese Gymnastic Association (CGA)

Revenue Sourcessponsorship rights/merchandising rights/advertising rights/marketing/event organisation……

11

Key Developments in Print, Online and Outdoor

Online – Led the Market with “Fee Paying” Culture

Further monetised user base & traffic through:-

- Launch of “TOMNET”-- a “one–stop” virtual ISP platform

- Introduced 163.net pay e-mail service with enhanced features

Print - Building Greater China’s Largest Chinese Media Group

Acquired 49% interest in PC Home and Cité

The foundation to build the largest Chinese print media platform

Intended listing of the print media group

Outdoor - Leading Player in the Market

Consolidation plan in place to acquire quality assets

Key targets identified

12

Our Business Outlook

Cross Media

Telecom VAS

Outdoor

Sports Print

Online

ISP VoIPASP SMS

Cement Dominant Position in Each Category

Build a Strong Telecom VAS Platform

Accelerate Break-even Ahead of Competition