Phoenix Satellite Television Holdings saw its earnings growth slow down in the second quarter following the launch of two new channels. The Growth Enterprise Market-listed Chinese satellite television operator posted a HK$46.18 million net profit for the three months to December 31 compared with a HK$51.38 million net profit from the previous quarter to September 30. The December quarter's revenue also dropped slightly on a quarter-to-quarter basis to HK$188.98 million. It recorded HK$192.3 million revenue in the September quarter. Chairman Liu Changle said earnings were held down by investment in new businesses during the year. However, on a half-year basis, Phoenix TV still achieved strong growth of 67.3 per cent in net revenue, due to healthy gains in advertising sales. In the six-month period, its turnover climbed 67.3 per cent to HK$381.32 million, up from HK$227.91 million a year ago. While half-year profit amounted to HK$97.56 million, the company made net losses of HK$1.9 million in the previous corresponding period. Phoenix TV soft-launched two new channels at the end of last year - Phoenix InfoNews Channel, a 24-hour Chinese language news channel, and Phoenix North America Chinese Channel, a news channel targeting Chinese viewers. Mr Liu said in the shorter term, investment in the two new businesses was likely to restrain profit growth. However, it would benefit from revenues generated by the two new channels, and create economies of scale in production and lower costs, he said. 'During 2001, we will work to achieve higher revenues from the Chinese Channel, which we are migrating to digital format while building out two new channels,' said Mr Liu. Shares in Phoenix TV rose one HK cent to finish at HK$1.97 yesterday. Phoenix TV was listed on the GEM board in June. The company raised HK$732.6 million in proceeds.