Hong Kong Broadband Network (1310) posted a 66 percent year-on-year slump in net profit to HK$46 million in the six months ended February 28.
The local broadband company said excluding a one-off impact resulting from a finance cost, the net profit for the period decreased 12 percent to HK$119 million, with the drop mainly due to the start-up investments associated with its mobile entry in September 2016.
An interim dividend of 22 HK cents was declared, up 10 percent from 20 HK cents in the same period last year.
HKBN's earnings before interest, taxes, depreciation and amortization was down 6 percent to HK$481 million. Its revenue and adjusted free cash flow continued to grow year on year at 25 percent and 3 percent respectively to HK$1.54 billion and HK$191 million.
Net additions for broadband subscriptions during the period was 21,000, down 45 percent from 38,000 in the first half of 2016. Residential average revenue per user during the period was HK$166, down 7 percent from the same period last year.
HKBN said it has pivoted its residential focus from subscriber growth to market revenue market focus and traded off a slowdown on net additions for broadband subscriptions in return for an acquisition and renewal contract ARPU of HK$192 per month for February 2017.