Hong Kong online and media firm Tom.com has reported 10 per cent quarter-on-quarter growth in turnover to HK$159.33 million for the three months to September.
Loss before interest, taxation, depreciation and amortisation fell 26 per cent to HK$35.30 million against the previous quarter.
The Growth Enterprise Market-listed firm, backed by tycoon Li Ka-shing, saw its gross margin dip 9 per cent to 36 per cent in the third quarter due to heavy marketing costs incurred launching Internet services provider business Tomnet.
The gross margin is expected to improve to 40 per cent next quarter, according to chief executive Sing Wang.
He said the revenue of its recently acquired PC Home and Cite venture, a profitable print media unit, would be booked into the balance sheet by the end of this year.
Offline revenue, which accounts for about 70 per cent of the total, showed flat growth to HK$112.8 million in the third quarter, while online earnings rose 43 per cent to HK$46.5 million, propelled by Tomnet which contributed more than US$2 million income.