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.