KEEN competition has reduced the profit margins of ABC Communications (Holdings), which reported a profit increase of 5.85 per cent to $82.31 million for the year to March 31.
The profit growth could be partly attributed to the substantial increase in contributions from associated companies which amounted to $10.8 million, compared with $3.76 million in the previous year.
Before the inclusion of gains from associated companies, operating profit was down one per cent to $89.3 million from $90.18 million.
Deputy managing director Patricia Yeung said the increased contribution from associated companies was attributed to its mainland joint venture GTP (Guangdong) Telecom and its paging operation in the Philippines.
The gains from associates had taken into account losses from the group's Taiwan operation and SmarTone Mobile Communications in Hong Kong, of which it owns 15 per cent, she said.
She said the fall in profit of the company's Hong Kong business was because of increased costs and reduced pager prices arising from heightened competition.
But chairman George Ho said the group continued to see steady growth in Hong Kong in spite of fierce competition from more than 20 other paging operators.
