SmarTone profit jumps 126% on 3G usage

29 Aug 2007

SmarTone-Vodafone, Hong Kong’s fourth largest mobile operator by subscribers, has posted full fiscal year net profit of HKD158 million (USD20 million) for the twelve months to 30 June 2007, up 126%, on 7% higher revenues of HKD4 billion, which it attributed to the popularity of 3G services. Blended ARPU in the year rose 5.6% to HKD225 per month and data revenue reached 18.5% of all turnover, up from 13.6% in the previous fiscal year, the company said. Chairman Raymond Kwok said under the company’s new dividend policy it would distribute 100% of its profit attributable to equity shareholders. SmarTone, owned by the Sun Hung Kai conglomerate, will pay HKD0.27 per share plus a cash dividend of HKD0.85 cents a share. CEO Douglas Li said the policy should not be interpreted as ‘our parent company wanting to sell its controlling stake or to take the company private.’ Kwok warned that with the pending issue of new CDMA2000 1xEV-DO licences, the GSM/W-CDMA operator would continue its focus on improving cost efficiencies, and would also continue its strategy of providing content services for different market segments, including a dedicated youth portal, devices such as the BlackBerry for businesses, and news and betting services.

Hong Kong, SmarTone