City Telecom’s broadband growth helps it turn a profit

26 May 2009

Net profit at Hong Kong-based fixed line and broadband operator City Telecom was up 58% year-on-year to HKD75 million (USD10 million) in the six months to the end of February 2009, driven by improving performance at its Fixed Telecoms Network Services (FTNS) business. It maintained what it claimed was ‘market-leading’ broadband subscriber growth, adding a net 34,000 customers in six months for a total of 350,000, and raised its blended broadband ARPU by 10.7% year-on-year to HKD196 per month. Six-month turnover increased by 15.6% year-on-year to HKD721.2 million due to higher revenue contributions from FTNS services, which contributed 82.2% of the group turnover in 1H FY09 (with the remainder attributed to international direct dial (IDD) services). Group EBITDA for 1H FY09 increased by 24.0% to HKD232.0 million year-on-year and the EBITDA margin increased by 2.2 percentage points to 32.2% when compared with 1H FY08, reflecting the growing contribution of the higher margin FTNS business.

Hong Kong, Hong Kong Broadband Network (HKBN)