China Telecom's Mobile Reading Base Aims for Future IPO
Sina Tech, 11/01/12
A spokesperson for China Telecom's (NYSE: CHA; 0728.HK) E-Surfing Reading base revealed today that the base has officially established E-Surfing Reading Cultural Dissemination (unofficial translation) as part of initial operations as an independent company. E-Surfing Reading plans to bring on external investment starting in 2013, and predicts that it will begin turning a profit in 2014. The company intends to list publicly in the future. Zhejiang Telecom GM Lu Yaohui will serve as chair and legal representative of the company, with Zhejiang Telecom deputy GM Gu Rongtai serving as GM and former China Telecom E-Surfing Mobile Reading base GM Xiao Wei overseeing daily operations as standing deputy GM.
Hua Kai, assistant to the GM of E-Surfing Reading, said that the mobile reading service had broken 80 mln users in October 2012, 10% of whom are paying subscribers. The service offers 200,000 books and 50,000 hours of audiobooks, with pay-per-read content comprising roughly 30% of total offerings. E-Surfing Reading expects revenues to reach RMB 100 mln by year's end, 45% of which will go to its content partners under revenue-sharing agreements.
Editor's Note: For more background on this topic, please see "China Telecom Spins off Mobile Reading Base" MD 8/31/12 issue.
Keywords: Gu Rongtai Hua Kai mobile literature Zhejiang Telecom China Telecom IPO revenue wireless 0728.HK CHA Lu Yaohui Xiao Wei
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