City Telecom (CTI), having posted an 80.7 per cent regression in earnings for the year to August, said a new focus on its fixed-line businesses should reinforce earnings next year.
Chairman Ricky Wong Wai-kay said his company's loss-making pay-television operation would break even by the end of next year while recurring revenue from its contract customers for voice and broadband services would lead the group into growth over the next few years.
'We have successfully transformed ourselves into a true fixed-line focused company from an IDD company,' Mr Wong said.
'Going forward, you can expect stable growth from our fixed-line business.'
Mr Wong described last year's performance as 'the bottom of our earnings curve'.
For now, about 85 per cent of the group's net fixed assets are related to its fixed-line business.
The company's net profit plunged to $49.55 million from a record gain of $257.74 million in the previous year. Performance was dragged down by $44.5 million in start-up losses at its broadband pay-television business and operating losses of $65.32 million for voice and broadband services.
