Friday, February 22, 2019
Martin Hennecke

SmarTone net 17pc less
SmarTone Telecommunications Holdings (0315) recorded a 17 percent year-on-year drop in net profit to HK$328 million for the six months ended 31 December, 2017, partly due to increases in amortization of spectrum utilization fee and lower handset and accessories sales.

An interim dividend of 18 HK cents per share was declared.

Over the period, roaming revenue fell 2 percent but the decline in voice roaming revenue was wider.

However, the management is hoping that the healthy growth in data roaming will offset the decreases in voice roaming in the next few years, chief executive Anna Yip said.

Its sales of handset and accessories declined 41 percent but chief financial officer Patrick Chan called this decrease "an industry problem rather than a SmarTone problem" because of customers' longer handset replacement cycle.

SmarTone's customer base was stable, growing 10 percent to 2.2 million.

The marketing team has been putting effort into high-end customers as well, to maintain their loyalty, Yip said.

Meanwhile, although developments in 5G technology require a large amount of capital, Chan believes that this will not affect the firm's 75 percent annual dividend policy.

Previous news : Guangzhou R&F issues profit warning


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