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