New | Profit rises 22pc at Richard Li’s HKT Trust and HKT
HKT Trust and HKT, the telecommunications arm of Richard Li Tzar-kai’s PCCW, boosted net profit 22 per cent from the previous year to HK$3 billion last year on robust growth in its mobile business and contributions from its acquisition of city rival CSL.
Hong Kong’s biggest telecommunications network operator said revenue rose 26 per cent to HK$28.8 billion.
“The acquisition of CSL has firmly established HKT as the leading telecom service provider in Hong Kong in not only fixed line and broadband, but also mobile communications,” the company said in a statement to the Hong Kong stock exchange after the market close yesterday.
The mobile business, which included the CSL results since May, registered a 165 per cent increase in total revenue to HK$8.95 billion for the year.
The CSL contributions helped handset sales soar 175 per cent to HK$2.05 billion from HK$745 million a year earlier.
The acquisition of CSL has firmly established HKT as the leading telecom service provider in Hong Kong in not only fixed line and broadband, but also mobile communications
HKT said that in addition to the acquisition effect, “the increase was mainly driven by the launch of several popular handsets in the second half of 2014”.
Apple’s iPhone 6 and iPhone 6 Plus models were launched in September. Analysts believe the gadgets have given a strong boost to telecommunications carriers.
HKT said average revenue per user improved 4 per cent to HK$219 last year, compared with HK$210 a year earlier.
The company said it would continue to unlock “more synergies which are expected to result in more significant customer and shareholder benefits in the coming 12 to 18 months”.
HKT said its prospects “remain positive in view of continued and emerging demands for data and voice communications globally including some new routes”.
Mobile data revenue jumped 124 per cent and accounted for 68 per cent of mobile services revenue for the year, while international direct dialling and roaming revenue accounted for 19 per cent. Telecommunications services revenue rose 3 per cent to HK$19.9 billion.
A report by Bank of America Merrill Lynch rated HKT a “buy”, with a target price of HK$11.
The stock closed up 0.8 per cent at HK$10.14 yesterday, with the Hang Seng Index flat.
HKT’s parent firm PCCW will announce its annual results on Wednesday. Hutchison Telecommunications and SmarTone will follow next week.
