PCCW steps up NOW investment

29 Mar 2006

Hong Kong’s largest fixed line provider PCCW is likely to announce a rise in net income for 2005 driven by asset sales and property investment gains. PCCW has sold a number of stakes in Asian cellular and computer game ventures to support investment in its NOW broadband pay-television unit. It received USD75.6 million from sale of a 12.1% stake in Singapore’s MobileOne in October 2005. In August, it disposed of a controlling share of Japanese game developer Jaleco, booking a gain of USD21 million. The company has expanded NOW’s content range by acquiring local broadcasting rights for channels including Cable News Network, and has introduced a 24-hour financial news service. NOW has around 25% of Hong Kong’s pay-TV market, with around half a million subscribers by the end of last year. Its biggest rival, I-Cable, had 738,000 subscribers at the same date.

Hong Kong, HKT (incl. CSL), PCCW Group