City Telecom (H.K.) Ltd - Report of Foreign Issuer (6-K)
May 19 2008 - 6:05AM
Edgar (US Regulatory)
CONFORMED COPY
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For May 19
th
2008
CITY TELECOM (H.K.) LIMITED
(Translation of registrants name into English)
Level 39
Tower I, Metroplaza
No. 223 Hing Fong Road
Kwai Chung
New Territories
Hong Kong
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover
Form 20-F or
Form 40-F.
Form 20-F
þ
Form 40-F
o
Indicate by check mark whether the registrant by furnishing the information contained in this
Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
Yes
o
No
þ
City Telecom (H.K.) Limited (the Company) is furnishing under cover of Form 6-K a statement dated
May 19
th
, 2008 relating to the Press Release for the Companys Interim Results for the
six months ended
February 29
th
, 2008.
SIGNATURE
Pursuant to the requirements of section 12 of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
|
|
|
|
|
|
CITY TELECOM (H.K.) LIMITED
|
|
|
By:
|
/s/ Lai Ni Quiaque
|
|
|
|
Name:
|
Lai Ni Quiaque
|
|
|
|
Title:
|
Executive Director, Chief Financial Officer and Company Secretary
|
|
|
Dated: May 19
th
, 2008
For immediate release
City Telecom Announces 2008 Interim Results
|
|
Profits attributable to shareholders increased by 162.0% year on year to HK$47.8 million
with basic earnings per share reached HK7.6 cents and diluted earnings per share at HK7.3
cents
|
|
|
Total revenue grew by 10.9% year-on-year to HK$623.8 million due to strong Fixed
Telecommunications Network Services (FTNS) business
|
|
|
FTNS revenue increased by 19.1% year-on-year to HK$474.9 million, with subscriptions growth
of 43,000 to 726,000 during the period, contributing 76.1% of the Groups total revenue
|
|
|
EBITDA decreased by 0.6% year-on-year to HK$187.1 million with EBITDA margin decreased from
33.5% to 30.0% mainly due to increase in discretionary advertising expenditure in brand
enhancement
|
(Hong Kong, 19 May 2008) City Telecom (HK) Limited (The Group) today announced interim results
for 2008 for the six months ended 29 February 2008. During the review period, the Groups business
grew continuously with consolidated turnover increased by 10.9% year-on-year to HK$623.8 million.
Profits attributable to shareholders increased by 162.0% to HK$47.8 million in 1HFY08. The Board
has resolved to pay an interim dividend of HK4 cents per share with a scrip dividend option.
The interim results this year had met our target with solid growth in our fixed telecom network
business, said Ricky Wong, Chairman of CTI.
FTNS business is now the bulk of the Groups business, contributing 76.1% of the total turnover,
reflecting the combined results of raising average revenue per user (ARPU) of ultra-high speed
broadband Internet access service and assertive expansion in subscription base. The strong
double-digit growth in FTNS by 19.1% to HK$474.9 million, more than compensated the decline in
International Telecommunications Service business (IDD) by 8.9% year-on-year to HK$148.9 million.
Consolidated EBITDA for 1HFY08 is slightly decreased by 0.6% to HK$187.1 million year-on-year,
primarily as a result of our investment in brand enhancement Network Differentiation
advertising campaign and one-off upfront customer acquisition costs led by strong growth in
subscriptions during the period.
The Groups wholly-owned subsidiary, Hong Kong Broadband Network Limited, principally engages in
fixed telecom network business, which is an infrastructure project spanning over 20 to 30 years. In
terms of the hardware our network infrastructure, there is nothing special that needed to
report, for our network is showing satisfactory development in both technology and in coverage.
Regarding the software"- our main focus over the past 2 years raising our brand image
externally, while at the same time upgrading our quality of management internally, enhancing the
Group to become more corporate and systematic, said Mr. Wong.
For FTNS, instead of focusing on subscription and ARPU as individual metrics, the Group adopted a
dynamic strategy to maximize revenue market share, which enabled the Group to deliver 19.1% revenue
growth in this market segment. Net subscriptions across broadband, voice and IPTV services added
43,000 to 726,000 subscriptions as of 29 February 2008. The Group managed to grow our subscriber
base without sacrificing our revenue yields, with new contracts for our broadband Internet service
delivering a blended ARPU of HK$177 per month in February 2008 versus HK$175 in February 2007.
As the pioneer in the Hong Kong telecommunications industry, during the period, the Group was the
first Internet service provider to launch Fiber-To-The-Home (FTTH) residential broadband services,
which enable the end-users in Hong Kong to enjoy the full benefits of future technology today. To
facilitate the mass deployment of FTTH service, the first Gigabit Passive Optical Network (GPON)
technology in Hong Kong was introduced. Together with the existing Metro Ethernet foundation, these
advanced technologies expedite the Groups network expansion towards achieving 2.0 million homes
pass target by 2010 in a cost effective way.
While broadband service is the core focus, emphasis was also put on voice and IPTV businesses.
Notwithstanding the landscape for voice market remained competitive due to the modest growth
environment and incumbents strategic retention campaign to maintain stable market share, the Group
managed to stabilize the subscriptions in the past six months, even though downward pressure on
pricing is still remained.
During the period, the Group launched dual mode High Definition Terrestrial TV Receiver and IPTV
set-top-box for all customers in Hong Kong. This new value-added product not only serves on-net
customers, but also allows off-net customers to enjoy the set-top-box via a rental plan.
IDD service revenue continued to decline as a result of intensive competition from traditional IDD
service and other Voice-Over-IP (VOIP) calling options, and also from the Groups proactive
migration of our IDD customer to our FTNS 2b VOIP service.
However, the decline slowed to a moderate level over the past 18 months. IDD traffic volume fell by
9.1% from 329 million minutes in 1HFY07 to 299 million minutes in 1HFY08.
The results for 1HFY08 reflected the continuing growth of FTNS business and also the significant
investment in brand enhancement. The Groups Network Differentiation campaign launched in October
2007 aroused significant voice from the mass market and also the incumbent. Customer confidence has
been strengthened considerably which has formed the foundation in expanding our customer base,
while much of the benefit from this investment will come in future years when the revenue is
realised over the subscription period.
To further expand our achievements, we have formed a consortium with two telecom corporations in
Singapore. MobileOne & StarHub, with us as the lead, together we are bidding for the Singapores
Next Generation National Broadband Network project, where the winner is expected to be announced
this August. With our investment in brand enhancement and network expansion locally, and to
leverage on our experience and know-how to replicate our successful story in Singapore, we are
confident to deliver higher level of shareholder value and provide favorable cash return to our
shareholders in near future, Mr. Wong concluded.
-End-
Note to Editors
Live webcast and replay for analyst presentation can be viewed at
www.ctigroup.com.hk
. Materials of
this annual results announcement, such as presentation slides and press release can also be found
at the above website.
About City Telecom / Hong Kong Broadband Network
Established in 1992, City Telecom (H.K.) Limited (SEHK: 1137, NASDAQ: CTEL) provides integrated
telecommunications services in Hong Kong. City Telecoms wholly-owned subsidiary, Hong Kong
Broadband Network Limited (HKBN), is in the process of expanding its Metro Ethernet from 1.4 mn to
2.0 mn homes pass. HKBN has achieved an aggregate Voice, Broadband (symmetric 25Mbps up to 1Gbps),
and IP-TV base in excess of 720,000 subscriptions. Additional information on City Telecom can be
found at
www.ctigroup.com.hk
.
|
|
|
For enquiries, please contact:
|
|
|
Corporate Communications
|
|
Investor Relations
|
Jessie Cheng
|
|
Peggy Chan
|
Tel: (852) 3145 4118
|
|
Tel: (852) 3145 6068
|
Fax: (852) 2199 8372
|
|
Fax: (852) 2199 8655
|
Email:
chengcm@ctihk.com
|
|
Email:
ir@ctihk.com
|
Hong Kong Television Network Ltd. (MM) (NASDAQ:CTEL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Hong Kong Television Network Ltd. (MM) (NASDAQ:CTEL)
Historical Stock Chart
From Jul 2023 to Jul 2024