PCCW net up 17% on mobile, cost-cutting

Hong Kong’s biggest telco, PCCW, has boosted half-year income by 17% on the back of lower costs and growth in mobile.

 

Group managing director Alex Arena attributed the result to the company’s quad-play strategy.

 

The mobile division boosted ebitda 17% despite flat revenue as it targeted PCCW’s high-end business customers and enjoyed a healthy 31% bump from mobile data.

 

The company announced a profit of HK$765 million ($98.3m) on 3% higher sales (excluding the property division) of HK$10.73 billion. 

 

Analysts polled by Bloomberg had expected income of HK$694 million. 

 

Cost of sales in the telecom group fell 9% and ebitda margin remained stable at 31%, the company said.

 

Ebitda for its residential and IDD businesses, which account for 77% of total sales, declined 1%, with local telephony revenue down 10%.