China Telecom's Video Subsidiary Aims for Domestic Listing
China Securities Journal, 1/31/13
At the recent 2013 brand strategy press conference in Shanghai for China Telecom's (NYSE: CHA; 0728.HK) online and mobile video subsidiary E-Surfing Media, E-Surfing Media GM Kang Jian said that the company had begun to turn a profit in 2012, and plans to raise a second round of funding in 2013 ahead of near-term plans for a domestic listing.
In 2013, Kang said, E-Surfing Media will act both as a platform and as a media operator. The company will increase efforts to innovate in differentiated content markets, particularly in areas including health-related and educational content.
The company has already formed partnerships with nearly 130 companies around China, and adds an average of more than 5,000 new items per day. As of the end of 2012, E-Surfing Video had revenues of RMB 500 mln for the year, with more than 90 mln users of its mobile platform and nearly 14 mln paying subscribers. Content partners take 50% of revenues under China Telecom's revenue-sharing agreements, E-Surfing Media takes a 35% share, and China Telecom takes the remaining 15%.
Editor's Note: For more background on this topic, please see "E-Surfing Video Achieves Profitability on Mobile Video Business" MD 10/30/12 issue.
Keywords: Kang Jian China Telecom funding revenue wireless mobile video 0728.HK CHA E-Surfing Media IPO second-round online video Internet
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