Shares in Tom Online dropped 8.94 per cent yesterday, a week before its scheduled third-quarter results announcement, after mainland rival Linktone said its earnings would come in below expectations.
The decline comes on the heels of failed discussions between the company and global instant messaging giant ICQ on a possible partnership.
'The talks were called off despite Tom Online being in trials with a beta version,' a source said.
An ICQ spokesperson said: 'While we are disappointed that we weren't able to come to terms with Tom Online, we are very excited about the opportunities to partner in the Chinese market.'
Nevertheless, Tom Online planned to launch an instant messaging application to round out its online portfolio of services, which include games and content downloads for mobile phones.
Tom Online shares finished 11 cents lower at HK$1.12.
On Wednesday, Shanghai-based Linktone said it expected third-quarter net income of US$2.7 million to $2.9 million, against previous guidance of $4 million to $4.2 million. Revenue will be between $13.1 million and $13.4 million, down from previous expectations of $13.7 million to $14.3 million.
