VODone Announces 2011 Interim Results

HONG KONG, Aug. 26, 2011 /PRNewswire-Asia/ --

Results Highlights

• Turnover grew by 93% to HK$583 million for the period y-o-y
• Turnover of all business segments recorded significant growths year-on-year
• Profit attributable to owners of the Company amounted to HK$111.4 million with EPS of HK4.38 cents
• Excluding a one-off fair value loss on deferred consideration shares and one-off share-based payment expenses, total comprehensive income attributable to owners of the Company amounted to HK$186.1 million, representing an increase of 67% over the last year
• Bank and cash balance of HK$342 million
• Total assets exceeded HK$2,640 million

VODone Limited ("VODone" or the "Company"; stock code: 00082.HK) is pleased to announce its unaudited consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2011.

During the period, turnover of the Group amounted to HK$583,400,000, representing an increase of around 93% as compared to the corresponding period of last year. Profit attributable to the owners of the Company amounted to HK$111,395,000, an increase of 3.8% from the last corresponding period. On excluding a one-off fair value loss on deferred consideration shares of HK$24,845,000, and a one-off share-based payment expenses of HK$9,157,000, total comprehensive income attributable to owners of the Company amounted to HK$186.1 million, an increase of 67% over last year.

Tele-media Business

The tele-media service business is the largest revenue generating sector for VODone, contributed a turnover of HK$293,678,000 to the Group for the six months ended 30 June 2011, representing an increase of around 78% as compared with HK$164,692,000 for the corresponding period last year.

2011 was the "expansion year" for the tele-media business of VODone. The news portal of VODone, ALEXA, climbed to a new height in ranking and successfully became one of the Top 3 news portals in China, it is a real mini-video news (www.vl.cn) portal now and the largest mini-video news portal in China.

The internet TV of VODone currently has 44 special guest commentators and approximately 31 slots of daily broadcast programmes. Since the commencement of the broadcasting, the programmes have been presented by live telecast and interactions between guests and audience which are well-received by audience and the general public. As the programmes had outstanding highlights, and commentaries from guests were detailed and straight to the point with eagerness to express public opinions, they were re-broadcasted by major media, websites and broadcasting platforms.

VODone BUS, an advertising platform of VODone, has been covered by more application software and gained reception of more advertisers since its expansion and upgrading from Internet terminal to also mobile terminals in the second half of 2010. Since its inception in 2005, VODone BUS has been leading the domestic Internet advertising industry. Amid the rapid development of the Internet and the ever-increasing customer demands in China, we have kept adjusting our development strategies. After being expanded to mobile terminal, VODone BUS mainly consists of two products: VBUS and MOBUS. VBUS is still engaged in traditional Internet advertising business while MOBUS is mainly engaged in the emerging mobile Internet advertising.

Covering a wider range of high-ended populations, the upgraded VODone BUS has won the trust of advertisers for its ability to lock up targeted audience more precisely, safely and efficiently, translate mobile traffic into advertising revenue, and achieve highly effective brand and product marketing. As one of the main businesses of VODone, VODone BUS will form a highly efficient linkage with VODone's other businesses such as VODone's mobile games, group buying and paperless lottery services.

"Line 0 of Metro" commenced trial broadcast on 3 July 2010 and was officially launched on the internet for global broadcast on 8 December in the same year. Since its inception, "Line 0 of metro" already has several hundred thousands of loyal active audience, and the downloading volume of the "Line 0 of Metro" mobile application by users has exceeded 5 million. On 24 March 2011, "Line 0 of Metro" won the "2011 Information Summit Grand Award", and was the only nominee in the "electronic entertainment and games" sector in the PRC region to compete for the biennial "World Information Summit Grand Award".

Lottery Related Business

As of 30 June 2011, the Group recorded a lottery-related income of HK$132,532,000, representing an increase of around 55%.

The triple integration of digital television, Internet and telecommunication networks has formed a widely adaptable, maintenance easy, low cost and high speed broadband multimedia-based platform that enables rapid development of lottery industry. With a unified system and database and compatible technology, interconnection can provide seamless coverage on the three networks. Inter-penetration and inter-exchange at the business level and the tendency of unified application at the application level enable the provision to general lottery players with more diversified, multimedia-enabled, personalized and convenient lottery betting services.

In 2010, apart from co-operating with manufacturers of mobile phone software and branded mobile phone and mobile terminal operators, such as Longcheer, Cmedia, Hangzhou SKY-MOBI, and Lenovo-Mobile, etc. and large financial institutions such as banks, our own lottery sales channels have also established long-term stable strategic partnerships with other media platforms, various branded manufacturers and advertisers in order to provide more convenient lottery betting service to lottery players.

Mobile Games Business

Mobile gaming business was the sector with the highest growth rate in terms of financial performance. For the first half of 2011, revenue significantly increased to HK$157,190,000, representing an increase of 200%.

According to the data of "Quarterly Monitoring of China's Mobile Gaming Market in the Second Quarter of 2011" lately released by Enfodesk, an industry database, the number of mobile games users in China has exceeded 150 million.

For the Feature Phone Games, VODone has extended our reach to global markets and established good cooperative relations with a number of telecommunication operators and local telecommunications services companies in regions such as East Asia, Southeast Asia, Europe, Latin America and Africa. We cooperate with more than 500 mobile phone solution providers and mobile handset manufacturers to jointly develop global mobile games markets and promote our global strategy for mobile games.

For the smart phones games division, VODone has a professional team with strong sense of innovation and extensive experience in game planning and technology development. Most of them are technical elites with extensive experience in the mobile communications industry. The team can master the most advanced technology of the industry to jointly engage in the development and operation of interactive and entertaining mobile games products. Besides, our group is a tight business partner with the mobile game business department of China Mobile and was granted the title "High-quality Games content provider". Our mobile games business has been ranked the first and the second in mobile network games of China Mobile. The "Bubble Journey to the West", a brand new game launched in May this year, has received good market response. Within one month after its launch, its user monthly spending consumption has exceeded RMB100.

We have a large and diversified portfolio of feature phone games and smartphone games. As of 30 June, 2011, our portfolio included 113 feature phone games and 151 smartphone games. For the six months ended 30 June, 2011, we had total paying users accounts of approximately 20.3 million, of which 17.8 million is for feature phone games and 2.5 million is for smartphone games.

According to "China's Mobile Game Market Research Report for the first half of 2011" prepared by Analysys International, CMGE has covered the whole industrial chain of mobile games, with the size of revenue from game development accounting for 18.3% of market shares in 2010. It has become the largest professional mobile game developer in China, and currently has a comprehensive product coverage over feature phones and smartphones as well as single player games and online games.

Prospects

Looking forward, Mr. Zhang Lijun, Chairman of VODone Limited concluded, "We will seize every opportunity and make aggressive steps with great endeavors under the speedy development of China's economy. We will continue to position ourselves as the new largest enterprise in the advanced media industry, With the constant expansion of China market, we firmly believe that we will benefit from the opportunities brought by the Triple Networks Convergence and continue to secure stable and rapid growth in 2011".

About VODone Limited

VODone (www.v1.cn) is currently the only Internet video broadcasting company listed in Hong Kong. The affiliated company of VODone – VODone Telemedia is a State-owned Enterprise which owns the fullest set of qualifications and licenses in China's New Media industry. It has also obtained the Information Network Communicated Audio-Video Program License, Internet News Permit, Value added Telecom Service Operation License, Internet Publication Permit and all other required licenses, ensuring itself a healthy development in the future.

VODone IR website: http://ir.vodone.com

This press release is distributed by Wonderful Sky Financial Group Limited on behalf of VODone Limited.

SOURCE VODone Limited