HKBN nears 200,000 IPTV users, loses profits on start-up costs

23 Apr 2012

City Telecom (including Hong Kong Broadband Network [HKBN]) has reported that its EBITDA for the first six months of its fiscal year fell by 7% to HKD281 million (USD37 million) and net profit dropped by 20% to HKD135 million, despite revenues climbing by 11% year-on-year to HKD918 million in the period September 2011-February 2012. The fall in profitability was attributed to multimedia business start-up costs, as the company prepares to spin off its VoIP-based voice telephony, fibre broadband internet and international direct dial (IDD) operations, to concentrate on its IPTV/multimedia operations, under a deal agreed with private equity firm CVC Capital Partners earlier this month. In the first half of fiscal year 2011/12, the fixed network services offered by HKBN – VoIP, broadband and IPTV – grew in revenue terms by 14% year-on-year, and accounted for 90%, or HKD828 million, of total revenues, while the turnover of City Telecom’s international telephony business dropped by 6% to HKD90 million. Broadband customers – nearly all direct fibre-based – increased by 27,000 in six months to reach 617,000 at the end of February 2012, while VoIP-based local telephony subscribers grew by 19,000 to 495,000 in the same period, and the IPTV customer base reached 195,000, up by 14,000 since September.

Hong Kong, Hong Kong Broadband Network (HKBN)