Pacific Century CyberWorks could expect slow or even zero growth in its major fixed-line business in the second half of the year, according to Morgan Stanley. The brokerage predicted CyberWorks' revenue from data services would grow only moderately and would be affected badly by the depressed economic conditions in Hong Kong. '[CyberWorks] points to clear trends that its corporate customers are taking a step back in telecoms consumption as a result of the economic recession and the reduction of bandwidth needs in association with staff lay-offs,' the brokerage reported, after an interview with CyberWorks chief financial officer David Prince. 'This is in line with our prior expectation that [CyberWorks] would not be immune to a downbeat macro environment and could see a slower second half.' Morgan Stanley anticipated flat revenue of HK$9.98 billion in the second half, the same as in the first half. It reported that while CyberWorks remained confident about medium to long-term data growth trends, data-related revenue could show a smaller advance in the second half. Despite cost-cutting and interest expense savings, Morgan Stanley cautioned that the valuation of CyberWorks was high given the company's steady operating losses in its Internet businesses, and financial concerns over its loans exposure of US$6.6 billion and the financing requirement of Cyberport.