Sohu to resume messaging services (Shenzhen Daily/Agencies) Updated: 2005-08-01 14:41
Chinese Internet portal Sohu.com Inc will resume delivering multimedia
messaging services (MMS) Monday, a month before a one-year suspension was
scheduled to be lifted.
Sohu doesn't expect the move to affect its third-quarter earnings guidance,
which was issued Wednesday.
In a press release Friday, Sohu said China Mobile Communication Corp, the
country's largest mobile carrier, informed the company it decided to resume
multimedia messaging cooperation on its nationwide network Monday. China Mobile
had suspended the services for a year because of unsolicited marketing by Sohu
to some customers.
Sohu said it transferred its multimedia messaging services business onto
China Mobile's mobile information service center platform in June, so it is
"technically ready" to resume the MMS business.
Because it will need to rebuild the business after 11 months of suspension,
Sohu doesn't expect the service resumption to materially affect its
third-quarter outlook.
Earlier last week, Sohu reported its second-quarter profit fell 28 percent,
to US$7.1 million, or 18 US cents a share, and said third-quarter results would
be weaker than expected, largely because of disappointing advertising revenue
growth.
The company projects third-quarter earnings of 18 US cents to 22 US cents a
share, on revenue of US$26.5 million to US$28.5 million. Analysts surveyed by
Thomson First Call, on average, estimate earnings of 22 cents a share, on
revenue of US$28.75 million.
Sohu said Friday it would leverage its resources to rebuild the multimedia
messaging services business and would cooperate with online and wireless partner
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