City Telecom (Hong Kong), one of Hong Kong's fixed-line telecommunications service providers, reported 162 per cent growth in net profit for the six months to February, citing a robust contribution from its international business.
Net profit reached HK$47.76 million for the interim period, from HK$18.23 million a year earlier. Revenue was up 10.9 per cent at HK$623.79 million, from HK$562.37 million.
Earnings per share were 7.6 HK cents, compared with 3 HK cents a year earlier. The company declared an interim dividend of 4 HK cents per share, the same as last year.
City Telecom said the strong growth in net profit was due to its international telecommunications service. Even though revenue from the segment was down 9 per cent at HK$151 million, profit was up 115 per cent at HK$50.7 million.
'The international business will account for around 20 per cent of our group revenue by the end of this fiscal year and was 23 per cent in the first half,' chairman Ricky Wong Wai-kay said at a press conference. 'We will focus on margin rather than volume in our international business.'
The company's revenue growth came from its fixed network business, which provides broadband, pay TV and residential voice service. It recorded a 17.89 per cent revenue increase to HK$486.9 million, from HK$413 million.
Profit was HK$45.1 million, up 13.88 per cent from HK$39.6 million a year earlier.
