New World Mobile Holdings is hoping increased revenue from data and roaming services will allow it to move on from a disappointing first half. Turnover from mobile services fell 10 per cent to $669 million in the six months to December. The company launched push-to-talk and mobile video services in October and January respectively. A US$30 million contract with Nokia to expand its GPRS/EDGE network coverage enabled both services to be offered. Chief executive Norman Wai blamed the decline in mobile services revenue on third-generation operators' 'various promotions that intensified the already fierce market competition'. Aggressive pricing by 3G operators resulted in a drop in average revenue per user to $171 from $189 as New World responded to competition with offers of extra communications minutes and rebates to new subscribers. Those losses were offset by a 75 per cent surge in revenue from sales of mobile handsets and accessories to $186 million from $106 million over the corresponding period last year. But with the 'relatively low' gross profit margin on handsets, it was not enough to counter the company's steep decline on the bottom line. Net profit shrank to $56 million from $77 million in the first half of the previous financial year. The company did manage to increase its subscriber base by 4 per cent to 1.3 million during the period and reported a 2.8 per cent subscriber churn rate 'on a par with the market level'. Yesterday, New World's share price closed up 4.47 per cent at $1.40. It rose as high as $1.48 during the day.