SmarTone steps up new business initiatives as annual revenue drops 53 per cent
Hong Kong’s No 3 mobile network operator is looking to establish information communications technology services, as well as pursue initiatives related to the so-called internet of things and artificial intelligence
SmarTone Telecommunications, the No 3 mobile network operator in Hong Kong, is increasing its focus on establishing advanced new businesses after its total revenue fell 53 per cent year on year in the 12 months ended June 30.
“While it is clear that the environment has been challenging and our profitability has been impacted, we have taken proactive measures to reposition our business for future growth,” said SmarTone chief executive Anna Yip in a conference call on Tuesday.
“Active measures are in place to drive productivity improvements and we are taking a long-term view to investing in our business.”
The operator reported a 16 per cent decrease in net profit to HK$672.1 million in the year to June 30, down from HK$797.1 million in the same period a year earlier, due to higher mobile spectrum costs, declining voice roaming revenue, lower handset profits and severe competitive pressure in the city.
That marked its second consecutive year of decline in net profit.
