Telstra snaps up mobile content assets in China

Australian carrier Telstra extended its presence in China this week with the acquisition of controlling interests in two mobile content and online music businesses.

Telstra has acquired a 67 per cent interest in both China M and Sharp Point. China M is a supplier of consumer mobile content serving 350,000 customers daily, while Sharp Point provides technical services for China Mobile’s central mobile music platform. Financial information was not disclosed.

The carrier said its moves are part of a plan to achieve A$1bn in revenue with strong margins and cash flow from its Chinese media assets by 2013.

Telstra already has online businesses in the real estate, automotive and consumer electronics market of China.

“We believe that pro forma revenues from China M and Sharp Point for fiscal 2009 will be around A$100m. Both businesses are EBITDA and EBIT positive today, and we expect the acquisitions to be earnings-per-share accretive from 2010,” said Telstra’s CEO, Sol Trujillo.

Despite the global financial crisis, China is forecast to be the fastest growing large economy in the world, with the International Monetary Fund forecasting growth of 6.7 per cent in 2009 and 8.0 per cent growth in 2010.