3G puts ‘severe pressure’ on SmarTone’s profit

6 Sep 2005

SmarTone-Vodafone, one of Hong Kong’s five wireless cellcos, has reported a 27% fall in earnings for the year ended 30 June 2005 to HKD338.8 million. Higher network expenses, licence fees, depreciation and handset subsidies all helped squeeze the bottom line, putting profits for next year under ‘severe pressure’ according to CEO Douglas Li. Revenues rose to HKD3.62 billion from HKD3.37 billion, thanks to higher average revenue per user (up HKD11 to HKD199) and increased handset sales. The company saw its customer base fall from 1.03 million to 1.01 million in the first six months of 2005.

Hong Kong, SmarTone