Pacific Century CyberWorks is expected to make a net profit of more than HK$2 billion this year from its local telephone business, according to a leaked confidential document from the company to a syndicate of banks in its attempt to refinance maturing debt.
This year's earnings forecast for Cable & Wireless HKT Telephone, a subsidiary of CyberWorks which has been put forward as collateral against a refinancing loan of US$4.7 billion, is 63 per cent lower than its full-year earnings of HK$5.68 billion last year.
The difference in earnings would be mainly due to interest expenses of almost HK$2.6 billion, which CyberWorks incurred when it took over HKT last year.
Total revenue at the former telephone monopoly was expected to fall 9 per cent to HK$15.4 billion, because of a fall in IDD revenue.
Revenue derived from IDD was expected to drop HK$1.1 billion to HK$2.07 billion for the full year to the end of this year.
In response to the leaking of the confidential document, Cyberworks issued a statement yesterday cautioning investors that the estimates and projections had not been audited.
