Its online division, which was spun off and listed in Hong Kong and New York last week, made $133 million last year with sales doubling to $592 million.

Total turnover was up 28.63 per cent to $2.08 billion, with internet operations accounting for 28 per cent, up from 16 per cent in 2002.

Its Taiwanese-based publishing operation accounted for 37 per cent of total turnover last year, down from 46 per cent previously. Outdoor advertising contributed about 14 per cent, compared with 15 per cent in 2002.

'We are confident in 2004, we should have a very significant rebound in outdoor [advertising unit],' chief executive Wang Sing said.

Television and entertainment was the only loss-making unit in the Li Ka-shing-backed company. Chinese Entertainment Television recorded a loss of $25 million last year.

Mr Wang said he hoped its recently acquired broadcaster would turn around in three years with localised programming and improving advertising sales.

Tom Group, formerly known as Tom.com, has been expanding rapidly through acquisitions in the Greater China region. Mr Wang said it would now strike a balance between 'speed and risk'.

'Tom is different from four years ago. In the past, [growth at] speed was more important than risk in terms of strategic vision,' he said. 'But now we are running business of $2 billion revenue a year, we have to buy accurately and look deeply into the risk factor.'

The company did not propose any dividend for the year ended December, but Mr Wang said it was 'closer to dividend distribution'.

Tom Group shares closed up 0.5 per cent at HK$2 yesterday while Tom Online - which had raised US$194.4 million through last week's listing - fell 5.3 per cent to HK$1.25, down from the initial public offering price of $1.51.

Tom Group will book profit of HK$800 million to $1 billion from the sale of Tom Online.