Sun 3C Media, a Beijing media company backed by U2 manager Paul McGuinness and developer Seán Mulryan, has reported an interim operating loss of €4.76 million in the six months to June.
Domiciled in Dublin and listed on the Alternative Investment Market (Aim) in London, the company has moved away from internet-focused TV shopping to concentrate on a push to capture significant market share for electronic top-up credit in China's booming mobile phone business.
In addition to Mr McGuinness and Mr Mulryan, the firm's Irish backers include Dublin businessman John McKeon. Former AIB banker Gerry O'Mahony and former PwC accountant Tom Jones are non-executive directors.
The interim operating loss, on revenues of €579,000, included a €2.74 million charge for the amortisation of intangible fixed assets. "Our financial results for the first half of 2007 reflect that this was a transitional period for the company," the company said.
Sun 3C is changing its name to CEC Unet following completion of its £9.4 million (€13.47 million) purchase of CEC Unet, the payments unit of China Electronics Appliance Corporation.
That deal in May gave the company access to more than 40,000 "top-up" outlets serving seven million mobile customers in Henan province, putting it in second place behind China's largest provider Lian Lian.
Sun 3C introduced its service in Guangdong province earlier this month, stating that it will have access there to a phone market with 45 million users.
Subscribers pay in advance for phone services, but mobile firms mostly rely on top-up cards to distribute credit. The firm is chaired by Chen Zhaobin, former vice-president of China Mobile.
Information for shareholders says it expects to operate 60,000 top-up terminals by the end of this year, 180,000 next year, and 380,000 by the end of 2009.
A research note the firm commissioned from Growth Equities & Company Research forecasts a pretax loss of €1.88 million this year, pretax profits of €410,000 next year and pretax profits of €13.21 million in 2009. Revenues are forecast to rise to €61.20 million in 2009 from €27.12 million in 2008 and €1.9 million this year.
The CEC Unet deal was an all-share transaction in which Chinese businessman Bruno Wu sold down his interest in Sun 3C.
The billionaire said yesterday that he wants to increase his stake in the firm.
