TCL Multimedia Technology Holdings and TCL Communication Technology Holdings both reported first-half losses after buying out their French shareholder's operations, but the former said it was likely to turn around quicker than its sister company. TCL Multimedia managing director Vincent Yan Yong said the group was on track to reverse the losses in mid-2006 after its operating arm TTE made an operating profit of $4 million in the second quarter of this year. But bigger losses in the first quarter dragged the group into a first-half net loss of $95.62 million, from a net profit of $381.06 million a year ago. TTE was originally a joint venture 67 per cent owned by the company and 33 per cent by France's Thomson Group after TCL Multimedia bought the latter's European and North American television businesses in August last year. Through the recent exercise of a share-swap arrangement, Thomson exchanged all of its stake in TTE for a 29.32 per cent stake in TCL Multimedia. 'Restructuring of our TV operations in Europe and North America is still ongoing, but savings and sales are expected to kick in in the last quarter of this year,' Mr Yan said. TCL Multimedia, the world's largest television maker, saw its revenue soar to $15.61 billion from a restated $7.84 billion a year ago. Meanwhile, TCL Communication made a net loss of $853.36 million during the period, from a net profit of $302.32 million, as global competition on mobile handsets continued to bite into margins. Revenue dropped to $2.97 billion from $3.48 billion. Managing director George Guo Aiping said the performance in the second half should improve as it was launching more new models.