New | Hong Kong’s SmarTone expects boost in revenue in bringing more bandwidth to city’s mobile users

SmarTone Telecommunications Holdings, which runs the No 3 mobile network operator in Hong Kong, expects a steady rise in revenue as it takes the lead in bringing more bandwidth for the city’s data-hungry 4G mobile users.

“Continuous increase in customer data usage offers opportunities for sustainable growth,” SmarTone interim chief executive Stephen Chau Kam-kun said on Tuesday at the announcement of the company’s latest financial results.

SmarTone, a subsidiary of Sun Hung Kai Properties, saw its revenue for the six months ended December 31 increase 18 per cent to HK$10.23 billion, up from HK$8.67 billion in the same period in 2014, on the back of higher smartphone and accessory sales.

Income from services, however, was nearly flat. It advanced just 1 per cent to HK$2.78 billion, up from HK$2.74 billion the previous year, because of lower roaming revenue.

“Customers’ migration to SIM-only plans masked a stronger improvement in underlying revenue as there was a corresponding reduction in handset subsidy amortisation,” Chau said.

Earnings before interest and tax for SmarTone’s handset business for its fiscal first-half ended December 31 fell 81 per cent to HK$47 million from HK$252 million a year earlier.

That resulted in a 14 per cent decline in net profit to HK$403 million from HK$466 million a year ago.