Hong Kong-based mobile VAS firm New World Mobile has blamed tougher rules imposed by mainland carriers for its deteriorating financial performance.
The company reported a 14.3% fall in sales to HK$14.16 million ($1.8m) in the 12 months to June 30, with gross profit down 25.8% to HK$8.6 million.
Thanks to an extraordinary gain from the sale of its 24% stake in mobile operator New World Mobility to rival CSL, the firm recorded a net profit of HK$293 million.
But NWM said its MVAS business had been "badly hit" by changes in the mainland wireless market. The latest was China Mobile's WAP service fee notification in May, which discouraged users from going to independent content provider WAP sites.
NWM said it was now building up Web-based city entertainment service, Chinaquest, and a commercial yellow pages operation, EBS. Its music service, www.hanyin.com, now had 218,000 registered users, NWM said in its filing.