Hutchison Telecommunications Hong Kong Holdings (HTHKH) has reported a 45% drop in revenue for the twelve months ended 31 December 2016, to HKD12.024 billion (USD1.55 billion). Mobile revenues plummeted 55% year-on-year to HKD8.332 billion due to a reduced demand for new smartphones during the year under review, with hardware sales dropping back from HKD14.371 billion in 2015 to just HKD4.386 billion in 2016 (down 69% y-o-y). On a positive note, fixed line service revenues managed to climb 4% y-o-y to HKD43127 billion (HKD3.973 billion in 2015). The firm reported that consolidated EBITDA was down 12% at HKD2.788 billion in 2016, while consolidated service EBITDA decreased 4% to HKD2.392 billion as a result of an increase in selling expenses from higher volume of service transactions completed in 2016. Profit attributable to shareholders fell 23% on an annualised basis to HKD701 million.
HTHKH claimed 3.20 million mobile subscribers in Hong Kong and Macau at the end of December 2016, up from three million a year earlier. The company said that the overall churn rate of post-paid customers substantially improved to 1.3% in 2016 (from 1.8% in 2015), which reflected the improved customers’ satisfaction with the quality of the 4G LTE network and enhanced customer service.