City Telecom’s net profit up 44.7%

9 Nov 2011

City Telecom (including Hong Kong Broadband Network [HKBN]) has released its annual results to the end of August 2011, a year in which its net profit shot up by 44.7% to HKD313.9 million (USD40.4 million) and EBITDA climbed 26.6% to HKD594.1 million. Total turnover grew by 6.8% to HKD1.682 billion, driven entirely by the group’s Fixed Telecommunications Network Services (FTNS) business area. FTNS revenue growth of 9.5% to HKD1.484 billion offset a 9.8% drop in the group’s formerly core international direct dial (IDD) business to HKD198 million. FTNS operations now account for 88.3% of turnover at City Telecom. Its HKBN brand saw full-year growth of 137,000 subscribers to reach a total of 1.247 million at the end of August; broadband subscribers increased by 64,000 including 39,000 in the first half and 25,000 in the second, reaching a total of 590,000. HKBN also reported 45,000 annual net additions to its local telephony customer base, standing at 476,000 at end-August, and 28,000 net adds for a total of 181,000 IPTV subscriptions at end-August 2011. Direct fibre network coverage expanded by 170,000 homes to reach a total of 1.94 million households, which according to the company’s own statistics represents 82% of a total 2.35 million homes in Hong Kong.

Hong Kong, Hong Kong Broadband Network (HKBN)