Another of China's formerly high-flying mobile service providers has reported poor financial results.

Hurray Holdings saw revenues slide 20 per cent in the second quarter, compared to the same period last year.

The market has been in the doldrums since the government cracked down on overcharging last year.

Additional pressure has come from giant mobile carrier China Mobile, which has begun to compete more strongly with the much smaller mobile services firms which rely on its network to reach customers.

Nasdaq-listed Hurray's revenues of $14.6m were down 12.3 per cent on the previous quarter and missed the company's own predictions by about $1m.

Net income plummeted 79.8 per cent during the quarter, and 88.7 per cent year on year to $200,000.

Q D Wang, chairman and chief executive at Hurray, said that market conditions are "volatile" and the regulatory environment is "constantly changing".

However, he maintained that the company "got through the quarter in reasonable shape which is very encouraging".

Hurray offers a variety of information and entertainment services to mobile phone users, including news, weather, financial information, ring-tones, music, video and instant messaging.

While most business areas contracted, music sales increased 33.5 per cent year on year to $1.8m. The company plans to build on this upbeat news.

"We will strive to maintain stability in our wide area value added service operations while continuing our efforts to develop proprietary content and diversify distribution channels," said Wang.

"Our goal is to transform Hurray into a leading entertainment content production and distribution house in China."