Clarifying its dismal performance in the past year, Chinese mobile portal site Tom Online (Nasdaq: TOMO) reported that 2006 profits dropped 36.3 percent to 28.7 million, or 54 cents per share, down from 2005’s $45 million. The company also reported a 4Q net loss of $0.51 million, a 104 percent decrease from 4Q05’s profit of $12.72 million. 
The company pinned the poor performance in the quarter on user policy and subscription fee changes by China Mobile, the world’s biggest carrier. It also said regulatory reforms throughout the year had an adverse affect on the company’s earnings.
Meanwhile, Tom Online did not offer any additional details regarding parent Tom Group’s plans to buy it out and take it private. Earlier in the week, Tom Group said would pay about $201 million in cash to take its subsidiary private. Highlights from its 4Q report:
-- Wireless Internet revenues, which comprise nearly 90 percent of Tom Online’s total revenues, fell 32 percent in the quarter from a year earlier to $29.6 million, and were down 3.3 percent for the full year.
-- Tom Online’s 4Q online ad revenue slipped 1.3 percent to $3.16 million.
-- For the year, ad revenue came to $13.28 million, rising 44.2 percent over 2005.
-- Tom Online’s total 4Q revenue retreated 28.5 percent to $33.62 million, compared to a restated $47 million a year earlier.
-- Full-year revenue was up 0.2 percent at $168.37 million.
-- The company indicated that its joint ventures with Skype and eBay should drive future growth. Earnings release | Webcast