After the IPO, Star TV Holdings and Today's Asia will each hold 38.25% of the company. If the overallotment option is exercised those holdings will drop to 37.41%.
Phoenix broadcasts Chinese programming in China, Hong Kong and southeast Asian countries through the Phoenix Chinese Channel and the Phoenix Movies Channel. Under current regulations in China, only certain organizations are allowed to receive satellite broadcasting. They include hotels of three stars and above and organizations involved in education, research, news, finance, economics and trade. Residential buildings set aside for non-China residents can also receive it.
Phoenix recorded a loss of HK$78.5 million for the year ended June 30, a narrowing of 40% from a loss of HK$131.1 million in fiscal 1998. Revenue in fiscal 1999 rose 80% to HK$314.7 million from HK$174.8 million in 1998. The improvement reflected increased advertising revenue from the Phoenix Chinese Channel, and an increase in subscription fees from the launch of its Phoenix Movies Channel in August 1998.