Pacific Century CyberWorks (PCCW) has posted a better than expected net profit of $346.8 million for the year to December 31. The company's earnings were boosted mainly by investment income of $574.3 million. Of this, $537.15 million was unrealised gains on holdings of 'other investments', while $37.14 million was realised gains from the disposal of certain 'other investments'. The company did not recommend a dividend payment for the period. Analysts believe CyberWorks will be in the red this year due to the huge capital expenditure required for rolling out its broadband Internet services. Interestingly, CyberWorks' turnover for last year was only $152.03 million, down 46.67 per cent compared with 1998. The net gain was about 2.28 times CyberWorks' turnover. The most recent Estimate Directory had seen analysts predicting the company would post a net profit of $24.2 million for the period. CyberWorks' predecessor, Tricom Holdings, recorded a net loss of $62.03 million in the corresponding period ended December 31, 1998. Earnings per share last year were 7.05 cents on a fully diluted basis and 9.99 cents basic. Shares in CyberWorks lifted 45 cents to close at $20.40 yesterday after the counter resumed trading. This means its shares were trading at a 289.36 times earning-per-share multiple on a fully diluted basis. CyberWorks last October spent $186.89 million to repurchase 34.78 million of its shares. Pacific Convergence Corp (PCC) - the company's broadband services platform - invested $110.8 million during the period on development. It expects to start rolling out its services under the Network of the World brand by mid-year. CyberWorks said the proposed merger with Cable & Wireless HKT would allow the company to use HKT's broadband infrastructure to gain access to the Hong Kong market and to expand the near-term customer base for the Network of the World service from its existing target market of 130 million. Meanwhile, CyberWorks said it had added another Internet-related investment to its 40 plus portfolio by taking an undisclosed equity stake in Internet-enabling infrastructure provider TurboLinux a member of US software group Linux. The total investment was not disclosed.