Operating losses at Nasdaq-listed Internet company Chinadotcom widened 27.8 per cent in the second quarter from the first quarter to US$23.13 million. The company also reported that its cash operating loss, which excludes depreciation, amortisation and non-recurring items, rose to US$10.6 million during the period, compared with US$8.7 million cash in the first quarter. Chinadotcom, which had claimed to return to profit in the first quarter, said its net loss was US$14.58 million in the three months to June 30. The Internet portal reported a net profit of US$108.5 million in the first quarter. It managed to turn into the black in the first quarter mainly because of an exceptional gain of about US$120 million from the spin-off of Hongkong.com for a listing on the Growth Enterprise Market. Its 82 per cent controlled subsidiary, Hongkong.com, announced on Monday for the first time a quarterly net profit of HK$2.62 million. But the net profit was boosted by a HK$20.12 million interest income generated from the HK$1.2 billion net cash on hand that the company raised from its initial public offering. Chinadotcom chief executive Peter Yip said: 'We continue to stride towards profitability.' The company said it would leverage on the economic scale of its operations infrastructure across the 10 most lucrative Asia-Pacific Internet markets to accelerate growth. Turnover surged 51.6 per cent in the second quarter to US$30.34 million compared with US$20 million in the first quarter. Most of the revenue growth was attributed to increases in electronic business solutions provision and advertising revenues. Gross margin improved to US$11.33 million in the second quarter from US$6.96 million in the first quarter. Sitting on cash reserves of about US$515.82 million, Chinadotcom booked an interest income of US$8.39 million in the second quarter. Mr Yip said the company was well positioned to take advantage of the Internet industry consolidation. Shares in Chinadotcom rose in early trading on Nasdaq yesterday to US$17.25 from Tuesday's close of US$16.93.