PCCW, the city's largest telecommunications firm, said last year's profit rose 20 per cent, as losses in its mobile and pay-television operations narrowed while internet business continued to grow. Net profit rose to HK$1.5 billion from HK$1.25 billion a year earlier despite a 7.4 per cent decline in revenue to HK$23.7 billion. Profit was in line with the range of HK$1.4 billion to HK$1.79 billion in a Reuters poll. The drop in revenue was mainly due to the fall in contribution from property sales of 62 per cent-owned Pacific Century Premium Developments. 'The company's performance this year will mainly depend on market competition,' said Kelvin Ho, a telecommunications analyst at Nomura International. 'PCCW's full-service offering in fixed line, TV and mobile services should have competitive advantage over its competitors.' Fixed-line telephone and broadband business remained PCCW's earnings driver with revenue and profit rising 8 per cent to HK$16.6 billion and HK$5.32 billion, respectively. PCCW has been gaining ground in the fixed-line business after the regulator, the Office of the Telecommunications Authority, removed its dominant status in 2005, allowing it to offer discounts more freely. The firm has a 66 per cent share in the residential fixed-line market and 68 per cent share in the corporate market. It had 2.59 million fixed-line subscribers at the end of last year and 1.23 million broadband accounts. 'We don't have any plans to raise the fixed-line tariff now, and we will offer more services to our subscribers,' said PCCW managing director Alex Arena. The Now TV and PCCW Mobile units narrowed their operating losses by more than 10 per cent last year after they signed up more users. PCCW Mobile, which was set up after the company bought Sunday Communications in 2005, recorded a HK$618 million loss compared with the HK$701 million loss a year earlier. Revenue was up 19 per cent to HK$1.46 billion. It had 1.07 million subscribers by the end of last year, up from 921,000 a year earlier, and more than 20 per cent, or 206,000, were using high-end third-generation services paying an average HK$216 a month. Their contribution boosted PCCW Mobile's average revenue per user, an industry profitability gauge, 4 per cent to HK$153. 'The mobile business achieved a break-even in earnings before interest, tax, depreciation and amortisation level last year, a year ahead of our estimates,' Mr Arena said. Now TV's loss narrowed 10 per cent to HK$397 million but revenue surged 70 per cent to HK$1.7 billion. The pay-television unit has caught up with main rival Cable Television after winning exclusive rights to Barclays Premier League football matches last year for three seasons. Now TV subscribers rose to 882,000 at the end of last year from 758,000 a year earlier, of which 628,000 were paid subscribers. The unit has also recorded ebitda break-even in the fourth quarter last year, Mr Arena said. PCCW will pay a final dividend of 13.5 HK cents per share, for a total dividend of 20 HK cents per share, up from 18.5 HK cents in 2006.