IGM logo.jpgThe
fallout from the Chinese clampdown on miss-selling of wireless services
continues to drift westward. London-listed IGM, which provides wireless
value-added services in Asia, today reported a year-on-year decline in
interim revenues of 5% to $2.7m.

To be fair, a 32% slump in
revenues from Taiwan was largely to blame for IGM's depressed top line.
In China, which is the main market for IGM's messaging services, it
actually managed to report a small year-on-year increase in revenues of
3.6% to $2.2m, despite the clampdown — see this EngagingChina story for more on China Mobile's restrictions on wireless services.

Nevertheless,
3.6% is the sort of sluggish growth we expect from plodding old
industries like metal bashing or cement making, not from young hi-tech
sectors like wireless value-added services (WVAS), and least of all
when the market concerned is China.

The company is apparently
not out of the woods yet as the regulatory changes, introduced in the
summer, will also impact its full year's results. Philip Wong, CEO
Executive Officer of IGM said:.

The
policy changes are leading to new market challenges in the second half
and will have a significant adverse impact on our marketing and
expansion strategy in China.”

That is not the sort
of announcement that investors like to here, particularly when it
accompanies your maiden results as a public company — IGM was admitted
to London's AIM market in May, when it raised $12m.

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