SmarTone’s net profit down 18% on 4G investment; service revenue down 1%

12 Sep 2013

Hong Kong cellco SmarTone has posted an 18% drop in annual net profit for its fiscal year ended 30 June 2013 to HKD843 million (USD109 million), despite total revenues climbing 21% to HKD12.1 billion, due to higher costs – including depreciation and amortisation costs – driven by 4G/3G network investment. Handset/accessories revenue surged by 52% to HKD6.40 billion, while service revenue dropped by 1% to HKD5.66 billion; a planned downscaling of SmarTone’s fixed-wireless operations and an 18% fall in roaming revenues offset a 4% increase in domestic mobile service revenue. SmarTone’s total customers in Hong Kong increased by 11% year-on-year to 1.82 million at the end of June 2013, while CEO Douglas Li added that data usage rose by 80% over the past 18 months.

Hong Kong, SmarTone