Thursday, April 26, 2018
Martin Hennecke

SmarTone interim dips
Telecom firm SmarTone (0315) posted a 2 percent dip in half year profit, dragged by fewer phone sales, and spectrum- related costs may continue to pressure profit.

Profit for the six months ended December 31 stood at HK$393 million. Interim dividend of 27 HK cents per share is proposed and full year dividend is expected to be the same as last year at 60 HK cents.

The total number of customers has reached two million and average revenue per user for its mobile postpaid plans was steady at HK$299 comparing to the second half last year.

Handset and accessory sales were down 64 percent year on year to HK$2.699 billion but earnings before interest and tax were only down 7 percent due to a higher margin. Roaming revenue also fell by 7 percent year on year to HK$380 million.

Patrick Chan Kai-lung, chief financial officer, said profit continued to be pressured in the first half against shrinking mobile phone sales.

Spectrum related costs were also going to take a larger share of the depreciation and amortization cost to up to 22 percent.

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