City Telecom’s fixed division upbeat as overall losses narrow

22 Nov 2006

City Telecom (Hong Kong Broadband Network) posted a net loss of HKD92.2 million (USD11.8 million) in its fiscal full year ended 31 August 2006, compared with a loss of HKD213.3 million the previous year, driven by healthy growth in its fixed telecom network services (FTNS) division. EBITDA improved to HKD245.2 million from HKD58.6 million in FY05, on total turnover that increased by 2% year-on-year to HKD1.16 billion, with FTNS revenues up by 22.6% to HKD741.3 million – offsetting a 21.5% decrease in City’s international telecoms services business. FTNS contributed 63.9% of total revenue for the twelve-month period. Chairman Ricky Wong commented: ‘We are encouraged by our FY06 achievements…During the year, we successfully shifted our strategic focus from subscriber to revenue market share. With the impact of this transition, our subscription base slightly fell, yet the revenue is driven up, enabling a healthy transformation of our business.’

Hong Kong, Hong Kong Broadband Network (HKBN)