CSL buy helps HKT boost profit, revenue

Dylan Bushell-Embling
telecomasia.net

Hong Kong's HKT grew its revenue and profit for 2014 by double digits, largely as a result of contributions from the acquisition of CSL.

Revenue rose 26% to HK$28.8 billion ($3.71 billion), while profit attributed to holders of share stapled units increased 22% to HK$2.99 billion.

The purchase of mobile operator CSL New World Mobility from Telstra in May helped HKT improve its foothold in the mobile sector, boosting economies of scale.

HKT's mobile customer revenue climbed 165% year-on-year to HK$8.95 billion as a result. Its mobile customer base likewise swelled 177% year-on-year to nearly 4.6 million. Postpaid customers increased 212% to 3.2 million, and 79% of these were smart device users.

The CSL acquisition also helped improve post-paid ARPU by 4% to HK$219. The post-paid churn rate was 1.5%. Mobile data revenue increased by 124% and accounted for 68% of the year's total mobile services revenue.

Total exchange and broadband lines in service meanwhile stayed flat at 2.6 million and 1.6 million respectively. Retail IDD minutes declined 17% to 397 million.

Looking ahead, the HKT management team has revealed it will continue to focus on unlocking synergies from the CSL purchase. HKT has re-launched its mobile brands as part of the acquisition and is exploring efforts to integrate the mobile networks.

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