PCCW net profit cut 17% on high costs
PCCW, Hong Kong's largest telephone company, reported a 17 percent fall in first-half net profit due to the keeping income of fix-line business and expansion of loss in pay-television business regarded as the group's new hope.
During the period, the company's net profit reached to HK$796 billion, in the bottom of expectations, sending interim dividend 6.5 cents each share.
Group's chairman Rechard Li didn't appear in the release conference; vice-chairman Mr Su responded to the deal of the group's interest in the first. He stressed the change of shareholder wouldn't impact on the company's operation and co-operated relation with China Netcom Communications (CNC); he also unveiled the latest development in cooperation with CNC, including purchasing 50% shares of its wide-band.
However, the group's core business perfromed flat, only increasing 15,000 new phone-line in first half, are lower than 50,000 of last same period; while the growth of lines can't bring increase in business except for EBITDA.
For the pay-television business, a light increase appeared - the number of consumers reached to 654 thousand, drawing to the CATV's 770 thousand. 73% of them belong to paid consumers, up 2%; ARPU achieved HK$118, an increase of 3.5%. But due to the increasing costs, the income of related business lost HK$186 million.
By the end of June, due to the debt attributing to SUNDAY unit, PCCW's debts increased to Hk$2.638 billion. For the payoff which increased up 54% to HK$1.07during the period, 324 million came from SUNDAY.
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