PCCW has blamed higher customer acquisition costs and impairment on investments for a 15% fall in full-year income.
The incumbent posted a HK$1.27 billion ($163 million) profit and said it would defer payment of a final dividend because of the court case over its $2 billion privatization.
It set aside a HK$161 million provision for impairment on its UK wireless broadband and other investments.
Discounting its property group, the carrier boosted sales 7% to HK$22.01 billion ($2.83 billion) but its telecom operating profit contracted by 12%, PCCW announced.
Group Managing Director Alex Arena said the company would focus on cost control and customer retention during 2009.
"We must manage all our costs prudently and responsibly, including judicious prioritization of capital expenditures," he said. "In this difficult and competitive environment, retention of customers is a focus."
PCCW\'s biggest growth area was in mobile, which increased subs by 23% to 1.2 million and doubled the number of 3G customers. It recorded HK$242 million ebitda on HK$1.744 billion in sales, up 19%.
The core local, IDD and internet business boosted revenue by 5% to HK$8.55 billion, but ebitda was flat at HK$3.55 billion.
TV and content sales grew 31% to HK$2.2 billion, but the division lost HK$83 million.
Broadband subs were up 5% to 1.28 million and NOW TV customers 8% to 927 million. Data throughput increased 28% and the number of lines in service rose by 1%, while IDD minutes fell 6%.