HONG KONG, Nov. 17, 2008 (GLOBE NEWSWIRE) -- City Telecom (H.K.) Limited, (the "Group") (HKEX:1137) and (Nasdaq:CTEL), 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."
For full details, pls visit www.ctigroup.com.hk.
About City Telecom/Hong Kong Broadband Network Limited
Established in 1992, City Telecom (H.K.) Limited (HKEX:1137) (Nasdaq:CTEL) provides integrated telecommunications services in Hong Kong. City Telecom's wholly-owned subsidiary, Hong Kong Broadband Network Limited (HKBN), is in the process of expanding its Metro Ethernet from 1.5mn to 2.0mn homes pass. HKBN has achieved an aggregate Voice, Broadband (symmetric 25Mbps up to 1Gbps), IP-TV and Corporate data services base in excess of 800,000 subscriptions. Additional information on City Telecom can be found at www.ctigroup.com.hk.