Tom.com, the internet portal backed by Hong Kong billionaire Li
Ka-shing, has posted a large second quarter loss triggering a
dramatic fall in internet shares quoted on the Hong Kong Stock
Exchange.
The information and entertainment portal showed three month
losses of HK$148.5m (£12.7m). One week previously it made redundant
80 of its 500 staff to cut costs. Revenues for the period were
HK$5.27m (£450,000). The web site launched in June 2000 following a
March floatation of the company that saw frenzied buying raise the
share price by over 300%. The share price has since fallen
dramatically, although it is still above its floatation price.
The technology-biased Growth Enterprise Market (GEM) fell to
more than 50% below its launch level in March 2000 in the wake of
Tom.com’s results.
On Tuesday of this week, Tom.com said it had received a licence
to set up a wholly owned investment company in China to invest in
internet businesses there. The company said it was looking to
acquisitions to speed its growth.
