PCCW reports growth in 3G, internet, IPTV

7 Mar 2008

PCCW Group has posted a 7.5% drop in annual revenues in 2007 to USD3.287 billion, although the Hong Kong incumbent telco’s core business – including telecoms, media and ICT – saw revenues increase 12% to USD2.638 billion. Group EBITDA rose 7% to USD935 million, with core EBITDA climbing 11% to USD834 million. Group results were negatively affected by the company’s property sector interests. Operating income was USD517 million, up from USD482 million in 2006, whilst net profit attributable to shareholders rose 20% from USD161 million to USD193 million. At the end of December 2007 PCCW’s domestic wireline division PCCW-HKT’s number of residential fixed lines in service remained unchanged year-on-year at 1.407 million, and business lines increased marginally to 1.183 million. Fixed broadband connections continued to grow steadily, reaching 1.237 million at end-December (including 107,000 business accounts and 70,000 wholesale lines), up 11% from the end of 2006. ‘NOWIPTV users increased by 16% to 882,000 at the end of the year. The telco also reported that Wi-Fi usage has risen tenfold since January 2007, driven by a rapid rollout of more than 4,000 public hotspots. Total mobile subscribers at subsidiary PCCW Mobile increased by 16% in the year to 1.071 million, despite what the operator called ‘fierce competition’. 3G mobile customers almost quadrupled from 55,000 to 206,000 in the twelve-month period, and 3G ARPU rose 7% year-on-year to HKD216 (USD28) in the second half of 2007, whilst 2G and 3G post-paid ARPU was up 4% to HKD153. PCCW also markets ‘quadruple-play’ fixed line, broadband internet, mobile and IPTV packages.