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City Telecom Reports Full Year
City Telecom announces 2008 annual results; delivers record high FTNS profitability and becomes largest alternative residential broadband ISP
November 17, 2008
2 Min Read
HONG KONG -- City Telecom (H.K.) Limited, (the ``Group'') (HKEX:1137) and (NasdaqGM:CTEL - News), today announced annual results for the year ended 31 August 2008.
Highlights:
Turnover grew by 14.2% year-on-year to HK$1,303.0 million due to strong Fixed Telecommunications Network Services (FTNS) business
Net profit up 3.3x to HK$125.2 million driven by record high FTNS profitability
Overtook Cable TV operator to become the largest alternative residential broadband service provider in Hong Kong:
Subscriptions up 27.9% outpacing market growth 4.8%
Blended ARPU up 9.1% to HK$191 per month
Churn lowered to well below 1.0% per month
EBITDA increased by 6.8% year-on-year to HK$378.0 million with EBITDA margin decreasing from 31.0 % to 29.0% due to increased discretionary investment in brand enhancement and higher variable subscription acquisition costs
FTNS turnover increased by 23.8% year-on-year to HK$1,011.0 million, with subscriptions growth of 118,000 to 801,000 during the year
Balance sheet strengthen with net debt to EBITDA down to 0.69x as of 31 August 2008 from 1.15x as of 31 August 2007
During the year under review, profits attributable to shareholders increased by 333.2% to HK$125.2 million, with consolidated turnover grew by 14.2% year-on-year to HK$1,303.0 million, the strongest turnover growth since FY2000. FTNS business continues to be the core focus, contributing 77.6% of the total turnover. The Board has recommended paying a final dividend of HK2 cents per ordinary share with a scrip dividend option.
For the year ended 31 August 2008, consolidated EBITDA increased by 6.8% to HK$378.0 million year-on-year, while our EBITDA margin fell to 29.0% from 31.0% in last year. This mild margin contraction is mainly due to higher advertising and marketing expenses as we invested in our brand development and one-off upfront customer acquisition costs.
Chief Executive Officer of the Group, Mr. William Yeung said, ``Our solid FY2008 result is a strong encouragement for our long term vision that fiber is the future. We are also seeing the long term benefits of significant investment in our brand which helps to turn our vision into shareholder returns.''
City Telecom (HK) Ltd.
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