China Business

Sep 16, 2005

Two Way TV Australia announces HK deal

SYDNEY - Interactive media firm Two Way TV Australia Ltd is banking on its Asian business to drive future growth after recently announcing its first Hong Kong-based deal.

Two Way TV Australia is a provider of interactive television content and programs. The company works with pay-TV and free-to-air TV networks in the development of digital content; including games and "Enhanced TV". Enhanced TV allows the viewer to, for example, interact with live sporting events, or to play along with game shows.

The Hong Kong deal will see it run interactive competitions using mobile phone-to-TV technology on Asia Television Ltd's (ATV) Kick Off Hot Talk soccer show, which could net the start-up

between A$170,000 ($US129,387) to A$430,000 in revenue. Managing director Jim McKay said the firm was confident the agreement would lead to other deals in Asia. "Two Way is currently focusing an enormous amount of effort on the Asian market generally, given the vast number of television viewers and mobile phone users in the region," he said.

The firm - which also provides subscription games channels on pay TV providers Foxtel and Austar - reported a net loss of A$2.14 million for the 2004-05 fiscal year, compared to a A$2.0 million loss the previous year, after a "significant degree" of investment in both the Australian and Asian businesses.

Locally, the firm said it would continue to focus on securing broadcast agreements for its interactive racing application, aiming to secure a New Zealand contract in the June 2006 quarter. Two Way's interactive racing product has been integrated with Tabcorp's New South Wales wagering system and its integration into the Victorian system has started, Mr McKay said. While the firm has had difficulty in striking a deal with local pay TV providers to distribute the product, it is now making positive progress, he added.

The firm is also targeting Optus' upcoming digital television service as a possible customer for its games channels and interactive gambling product. Two Way, which listed on the Australian Stock Exchange last December, did not declare a final dividend in line with prospectus forecasts.

(Asia Pulse)

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