PCCW annual profit slips 15%

22 Apr 2009

Hong Kong-based PCCW Group has reported its full-year 2008 results, in which it said that core businesses performed ‘satisfactorily’ in the first three quarters, but were adversely affected in the fourth quarter by the deteriorating global economic conditions. Core communications revenue (excluding property businesses) increased by 7% to HKD22.01 billion (USD2.84 billion), core EBITDA climbed by 3% to HKD6.71 billion and net profit attributable to shareholders decreased by 15% to HKD1.27 billion, mainly due to higher customer acquisition costs, a deficit on revaluation of investment properties and impairment provisions of investments. Fixed line and broadband revenues rose 5% to HKD17.5 billion, mobile revenues climbed 19% to HKD1.7 billion and TV/content turnover jumped 31% to HKD2.2 billion, whilst integrated services division PCCW Solutions posted sales of HKD1.9 billion, up 4%. PCCW’s fixed telephony lines in Hong Kong increased by 1% year-on-year to 2.6 million at end-December 2008, whilst fixed broadband lines grew by 5% to 1.3 million, total mobile subscribers rose by 23% to 1.3 million, including 101% growth in PCCW’s 3G customer base to 414,000, and paying subscribers to its ‘now’ IPTV service reached 686,000, an increase of 9% over end-2007.