FY net profit down 15% at SmarTone on poor handset sales

30 Aug 2016

Hong Kong-based cellco SmarTone has reported a 2% drop in sales for the financial year to 30 June 2016, to HKD18.36 billion (USD2.34 billion), on the back of declines in handset and service revenues. Service revenues were down 2% due to the continued migration to SIM-only plans and lower roaming and pre-paid sales, while earnings from handset sales plummeted 77% to HKD90 million due to the maturation of the smartphone market. Net profit fell 15% year-on-year to HKD797 million.

In operational terms, customer numbers increased 1% to 1.97 million, with average monthly post-paid churn unchanged at 0.9%. Mobile post-paid ARPU climbed 2% y-o-y to HKD301. The firm added that it expects to begin early trials of 5G technology in 2017/18.

Hong Kong, SmarTone