In another attempt to increase market share, the company will offer further discounts to fixed-line subscribers
City Telecom (CTI) plans to cut prices further for fixed-line telephone services as it fights to gain market share from dominant player PCCW.
The No4 player did not reveal any new tariff details yesterday, but earlier said price cuts had in part helped the company's profits rise by almost 200 per cent this year.
CTI recently lowered its rates to half what its four competitors charge and hopes to sign up 12,000 new customers every month.
The main-board-listed firm yesterday reported profit rose 182.91 per cent to $257.82 million in the year to August, helped by a one-off rebate of $84 million it overpaid into a fund that provides services to money-losing remote areas.
The strong earnings beat a Thomson First Call poll of analyst forecasts of $224 million. Revenue climbed to $1.29 billion from $1.15 billion, up 12.92 per cent. Gross profit margin rose to 75 per cent from 60 per cent, largely due to increasing sales at its telephone and broadband unit, Hong Kong Broadband Network (HKBN).
