SmarTone's annual profit falls 36%

5 Sep 2014

Hong Kong and Macau mobile operator SmarTone has reported that its net profit for its fiscal year ended 30 June 2014 fell by 36% to HKD537 million (USD69.3 million) as network operating costs rose and handset margins shrank. The operator blamed declines in service revenue (down 3% to HKD5.4 billion for the twelve-month period) and ARPU (11% down at HKD234) on customer migration to lower priced SIM-only plans (from handset bundling plans) as well as popularity of its lower-priced 3G speed-capped plan, TelecomAsia reports. SmarTone noted that roaming revenue also declined. The 2G/3G/4G operator’s Hong Kong mobile subscribers increased by 3% y-o-y to 1.88 million by end-June 2014. Commenting on the revenue slump, SmarTone director Patrick Chan noted that the intended migration of customers from ‘unlimited’ 5GB data plans to tiered-pricing has been slow – ‘not as good as expected, and quite disappointing’ – which contributed to the negative result, he said.

Hong Kong, SmarTone