Hong Kong-listed cross-media company Tom Group Limited reported strong growth in the first half of this year, improved by rapid increases in sports and online revenues.

"During the first six months of the year, the group has gone from strength to strength and has continued to build on our strong foundation to accelerate growth," said Sing Wang, chief executive officer of the Hong Kong Stock Exchange-listed company.

Tom Group said yesterday that its revenues reached HK$1.198 billion (US$154 million) in the first six months with a year-on-year growth of 31 per cent, reported China Daily Friday.

Operating cash flow was HK$190 million (US$24.36 million), compared with HK$76 million (US$9.74 million) in the same period one year ago.

Tom Group's stocks on the Hong Kong Stock Exchange fell 3.45 per cent to HK$1.68 (22 US cents) yesterday.

Peter Lu, a Beijing-based media analyst, said the results were quite good, as the company's online business maintained a strong growth momentum and sports business recovered from the deadly severe acute respiratory syndrome (SARS) last year.

Sports-related revenues more than doubled to HK$127 million (US$16.28 million) in the January-June period with HK$102 million of revenues (US$13.08 million) achieved in the second quarter of this year.

Wang attributed the growth mainly to the sales of the TV broadcasting rights on the UEFA Euro 2004 held in Portugal.

Another reason for the fast year-on-year growth was that the sports business was under the shadow of SARS last year.

Online business, under the Tom Group's Growth Enterprise Market and NASDAQ-listed arm Tom Online, also achieved a 66 per cent year-on-year growth.

Online revenues reached HK$443 million (US$56.8 million) in the first half, due to Tom Online's fast growth in new wireless services.

"Tom Online's focus on new services has paid off, when the industry is suffering from a decline of the traditional short messaging service," said Jim Sun with London-based Evolution Securities.

Publication business, mainly focused in Taiwan Province, maintained a steady growth and contributed HK$441 million (US$56.54 million).

On July 5, Tom Group said it set up a joint venture with China Popular Computer Week Management Company Limited based in Chongqing Municipality and Tom Group has 49 per cent stakes in the venture.

It was also reported that the company was talking with Xinhua Bookstore, the biggest book distribution network in the Chinese mainland.

The outdoor advertising business of Tom Group, the largest in the Chinese mainland, generated HK$159 million (US$20.38 million) revenues, compared with HK$141 million (US$18.08 million) of last year.

The TV business under the China Entertainment TV, acquired from Time Warner last year, was still in the red with revenues of HK$11 million (US$1.41 million), compared with HK$11.03 million (US$1.41 million) in the same period last year.

(China Daily)