City Telecom announced interim results for the six months to 28 February 2009. The group has become the second largest broadband provider in HK and posted a rise in subscriptions, turnover, EBITDA and net profits.
The net profit increased to HK$75.3m, up 57.7% YoY driven by improved Fixed Telecoms Network Services (FTNS) business.
The turnover was HK$721.2m, up 5.6% YOY, due to higher revenue contribution from FTNS which contributed 82.2% of the group turnover in H1 FY09.
Blended broadband ARPU rose by 10.7% YoY to HK$196/month. However, the broadband churn remained well below 1% per month.
The group aims to be the largest IP service provider in HK by 2016.
Ricky Wong, chairman of the group, said: While the immediate economic outlook remains uncertain, we will continue to leverage Fibre network advantage for profitable growth. We are now harvesting shareholder value from utility-like demand on the investments in network infrastructure and brand enhancement that we have been making since the grant of our FTNS license in 2000.
