Tom gears up for growth on the back of e-commerce venture's gains

Tom Group, the media conglomerate controlled by Li Ka-shing, plans to build up its core operations after reporting a profit in the first half of this year and solid gains by its e-commerce joint venture on the mainland.

Chairman Frank John Sixt expressed confidence in pursuing that strategy even after a decline in sales and wider operating loss during the period, according to the firm's filing with the Hong Kong stock exchange yesterday.

"Tom Group will maintain financial and operating disciplines while expanding the group's core businesses," he said.

He attributed Tom's interim net profit of HK$29.46 million, compared with a HK$113.46 million net loss a year earlier, to a disposable gain of HK$157 million from new investments raised in January and the 354 per cent year on year growth posted by Ule, the company's offline-to-online shopping venture with China Post.

Tom saw its operating loss widen to HK$105.56 million from HK$85.82 million the previous year. Total interim revenue was down 25 per cent to HK$726.68 million from HK$975.11 million a year ago. Tom's core businesses comprise mobile internet, publishing, outdoor media and e-commerce, which is now the company's main growth driver.

Sixt said Ule recorded 2.31 billion yuan (HK$2.9 billion) in gross merchandise value - representing the amount of goods sold by the business - in the first half, which exceeded the venture's 1.43 billion yuan total for the whole of last year.