HKT Trust and HKT, which runs the biggest fixed-line network in Hong Kong, expects to raise broadband rates after posting major gains in its first interim financial results since November's initial public offering.
'Hong Kong wages are going up, electricity is going up and rents are really going up. So like any business, our costs are going up,' Alex Arena, HKT's group managing director, said yesterday.
'We have to pass some of that to the consumer. That means our broadband prices, at this stage, are more likely to go up than down.'
HKT Trust and operating firm HKT represent the telecommunications business that was spun off by billionaire Richard Li Tzar-kai's PCCW, which holds about 63 per cent of the total issued share stapled units in the city's first listed business trust. For the six months ended June 30, HKT said its net profit rose 45 per cent to HK$778 million from HK$537 million a year earlier. It attributed that rise to its steadily growing mobile and broadband service businesses.
Total revenue was up 2 per cent to HK$9.71 billion from HK$9.54 billion the previous year.
Earnings before interest, tax, depreciation and amortisation - representing net cash flows from the company's operating activities - advanced 3 per cent from a year ago to HK$3.74 billion.
Macquarie Securities analyst Lisa Soh said HKT's interim numbers were in line with her estimates.