Hot in the City: HKBN reports fiscal year results

10 Nov 2010

Hong Kong triple-play operator City Telecom (including Hong Kong Broadband Network, HKBN) has posted its financial and operational results for the twelve months to 31 August 2010, in which it revealed that total turnover grew by 6.5% year-on-year to HKD1.575 billion (USD203 million), driven by 10.2% fixed local access/broadband revenue growth to HKD1.356 billion. Net profit attributable to shareholders for the group’s full fiscal year reached HKD217 million, compared to HKD213 million in FY2009. In FY2010 there were 135,000 net broadband additions to reach 526,000 high speed (mostly direct fibre) subscriptions, on the back of a ten-month promotion ended August 2010. Effective 1 September 2010, the headline-grabbing HKD99 per month 100Mbps symmetric fibre broadband package was replaced by the option of HKD199 per month for a 100Mbps triple-play package, or HKD199 per month for a 1Gbps broadband-only service. City Telecom also added 49,000 net new local telephony subscribers in FY2010 to take its total to 431,000 at end-August, whilst its IPTV service saw a net decline of 17,000 customers to 153,000 in the same period, as the company said it ‘proactively churned off free or low paying IPTV subscribers and redeployed the set-top-boxes to higher yielding customers.’ International Direct Dial (IDD) telephony revenue – historically City’s core earner – was down 11.6% y-o-y to HKD219 million in the year, contributing only 13.9% of the group’s turnover.

Hong Kong, Hong Kong Broadband Network (HKBN)