Citic Telecom's profit up 6%, revenue down 7.8% in 2016

Monday 20 March 2017 | 13:39 CET | News

Hong Kong-based Citic Telecom International saw its group turnover decrease by 7.8 percent to HKD 7.6 billion for the year ended 31 December 2016, from HKD 8.3 billion in 2015. The group recorded growth in both internet and enterprise services, but the weak mobile handset sales and the continued decline in revenue from traditional telecommunications services has resulted in an overall decrease in turnover. Profit and basic EPS amounted to HKD 850.1 million and HKD 24.9 cents, respectively, which represented a year-on-year increase of 6 percent and 4.6 percent compared with 2015.

Revenue from internet services increased by 10.8 percent to HKD 922.2 million as a result of the increase in the number of subscribers, fibre broadband uptake and the increase in data centre revenue. The Group saw a significant decrease in equipment and mobile handset sales of HKD 560.8 million, down from HKD 2.2 billion in 2015 to HKD 1.6 billion in 2016.

The number of 4G customers increased by 15.3 times in total. The operator now claims to hold a 57 percent market share for this segment, while running reciprocal LTE roaming services with 94 carriers. The number of the Group’s WiFi hotspots in Macau as at the end of December also increased by 122.6 percent as compared to the beginning of the year. The number of customers for the Group’s optical service increased by 74 percent in 2016 compared to 2015.

The overall number of subscribers at 31 December 2016 increased by 4.3 percent from 31 December 2015 to around 857,000 subscribers, of which 60.1 percent were 4G subscribers. The Group’s mobile market share in Macau was around 43.5 percent at 31 December 2016, slightly up from 43.3 percent at end-2015, while the Group had 57 percent market share in the 4G subscribers of Macau mobile market, down from 65 percent in December 2015.

The total number of broadband subscribers increased by 3.6 percent from 169,000 subscribers in December 2015 to around 175,000 subscribers in December 2016. The Group says its internet market share in Macau was around 98.2 percent at 31 December 2016.

The Group’s international telecommunications services mainly comprised of voice and SMS services. Voice services revenue decreased by 10 percent to HKD 1.1 billion for the year ended 31 December 2016 over the same period in 2015. Total traffic of 4.4 billion minutes was handled by the Group, representing a 7.6 percent reduction compared with 2015.   Enterprise services revenue increased by 7.1 percent from HKD 2.1 billion in 2015 to HKD 2.2 billion for the year ended 31 December 2016. Fixed line services revenue was HKD 321.7 million for 2016 which represented a decrease of 9.8 percent year-on-year. The Group’s total capital expenditure amounted to HKD 496.5 million in 2016.

The board recommended a final dividend of HKD 10.35 cents per share for 2016. Together with the 2016 interim dividend of HKD 2.85 cents per share, total dividends per share for 2016 amounted to HKD 13.20 cents, representing a 5.6 percent growth over the previous year.

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