Hong Kong Broadband Network (HKBN) has reported revenues of HKD3.95 billion (USD503.8 million) for its 2018 financial year to 31 August, up 22% year-on-year. The firm said the increase was driven by both residential and business customers, with sales in those segments up 16% and 14%, respectively. EBITDA rose 13% to HKD1.18 billion, while net profit for the year jumped from HKD171.1 million in FY 2017 to HKD396.9 million a year later.
The number of residential fixed broadband subscriptions fell 1% to 860,000, while voice lines in service dropped 3% year-on-year to 500,000. ARPU climbed 5% to HKD176 per month. In the business sector, broadband subscriptions were up 8% at 57,000, while voice lines totalled 140,000 at end-August, up 6% y-o-y. Business ARPU was up 3% at HKD1,510. HKBN’s mobile resale unit claimed 265,000 customers at the end of August 2018, up from 147,000 a year before.
In August 2018 HKBN announced plans to acquire business services provider WTT in a HKD10.5 billion all-stock transaction. HKBN agreed to conditionally purchase all of WTT’s shares in exchange for issuing a combination of HKBN shares and vendor loan notes to WTT’s joint owners, MBK Partners and TPG. After the completion of the merger, which is expected in the first quarter of 2019, MBK and TPG will hold around 11.7% of HKBN’s shares.