SmarTone-Vodafone interim sales up 5%, profit slumps 68%

26 Feb 2009

Hong Kong mobile operator SmarTone-Vodafone has reported a 5% fall in revenues to HKD1.96 billion (USD253 million) for its first fiscal half-year ended 31 December 2008, because of tariff cuts, a decline in handset sales and lower roaming income. Blended monthly ARPU dropped 3% to HKD230 in the six-month period, although mobile data revenue grew 20% and accounted for 27% of total service revenue. The 2G/3G operator announced a 68% year-on-year fall in interim profit to HKD52.3 million, and also predicted further drops in revenues and profits for the remainder of the financial year. SmarTone chairman Raymond Kwok commented: ‘With continuing deterioration in the economic environment, on-going price competition and further decline in roaming revenue from reduced business travel, service revenue is expected to decline further.’ At its neighbouring Macau division, SmarTone’s six-month revenue fell 1%, whilst operating profit fell 19% to HKD49 million on costs that grew by 13% year-on-year.

Hong Kong, SmarTone