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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Hong Kong Television Network Ltd. (MM) | NASDAQ:CTEL | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 6.08 | 0 | 01:00:00 |
CITY TELECOM (H.K.) LIMITED
|
||||
By: | /s/ Lai Ni Quiaque | |||
Name: | Lai Ni Quiaque | |||
Title: | Executive Director, Chief Financial Officer and Company Secretary |
|
Net profit up 44.0% year-on-year to HK$167.6 million with basic earnings per share
amounted to HK21.9 cents versus HK17.3 cents for same period last year
|
|
Declared an interim dividend of HK15 cents per ordinary share, up 131% from HK6.5 cents
per ordinary share for same period last year
|
|
Core EBITDA
(note)
increased by 16.7% year-on-year to HK$301.6 million
|
|
Turnover grew by 5.1% year-on-year to HK$825.9 million driven by higher revenue
contribution from our Fixed Telecommunications Network Service (FTNS) business of 7.6%
year-on-year to HK$727.2 million
|
|
For six months to 28 February 2011, broadband subscription increased by 25,000 net
additions to 551,000, dominating 68% of total estimated market growth of 37,000, despite
large price increase implemented on 1 September 2010
|
Note: |
Core EBITDA represents the EBITDA for any period plus any net loss from extinguishment
of 10-year senior notes.
|
- 1 -
Six months ended | ||||||||||
28 February | 28 February | |||||||||
2011 | 2010 | |||||||||
Note | HK$000 | HK$000 | ||||||||
|
||||||||||
Turnover
|
3 | 825,906 | 785,963 | |||||||
|
||||||||||
Network costs
|
4 | (103,781 | ) | (90,185 | ) | |||||
|
||||||||||
Other operating expenses
|
(527,911 | ) | (539,612 | ) | ||||||
|
||||||||||
Other income/(losses), net
|
5 | 3,210 | (4,251 | ) | ||||||
|
||||||||||
Finance costs, net
|
6(a) | 247 | (12,255 | ) | ||||||
|
||||||||||
|
||||||||||
Profit before taxation
|
6 | 197,671 | 139,660 | |||||||
|
||||||||||
Income tax expense
|
8 | (30,059 | ) | (23,272 | ) | |||||
|
||||||||||
|
||||||||||
Profit attributable to shareholders
|
167,612 | 116,388 | ||||||||
|
||||||||||
|
||||||||||
Basic earnings per share
|
10 | HK21.9 cents | HK17.3 cents | |||||||
|
||||||||||
|
||||||||||
Diluted earnings per share
|
10 | HK21.1 cents | HK16.5 cents | |||||||
|
- 2 -
28 February | 31 August | |||||||||
2011 | 2010 | |||||||||
Note | HK$000 | HK$000 | ||||||||
|
||||||||||
Non-current assets
|
||||||||||
|
||||||||||
Goodwill
|
1,066 | 1,066 | ||||||||
Fixed assets
|
1,494,894 | 1,431,813 | ||||||||
Long-term prepayment
|
4,521 | 5,174 | ||||||||
Deferred expenditure
|
11,951 | 6,626 | ||||||||
|
||||||||||
|
||||||||||
|
1,512,432 | 1,444,679 | ||||||||
|
||||||||||
|
||||||||||
Current assets
|
||||||||||
|
||||||||||
Accounts receivable
|
11 | 65,059 | 99,729 | |||||||
Other receivables, deposits and prepayments
|
201,910 | 89,490 | ||||||||
Deferred expenditure
|
27,273 | 28,986 | ||||||||
Cash at bank and in hand
|
476,855 | 588,665 | ||||||||
|
||||||||||
|
||||||||||
|
771,097 | 806,870 | ||||||||
|
||||||||||
|
||||||||||
Current liabilities
|
||||||||||
|
||||||||||
Bank overdrafts unsecured
|
4,961 | 10,490 | ||||||||
Accounts payable
|
12 | 22,652 | 35,128 | |||||||
Other payables and accrued charges
|
166,217 | 195,931 | ||||||||
Deposits received
|
22,661 | 21,822 | ||||||||
Deferred services revenue
|
89,068 | 106,798 | ||||||||
Tax payable
|
1,687 | 1,533 | ||||||||
Current portion obligations under finance leases
|
153 | 212 | ||||||||
|
||||||||||
|
||||||||||
|
307,399 | 371,914 | ||||||||
|
||||||||||
|
||||||||||
Net current assets
|
463,698 | 434,956 | ||||||||
|
||||||||||
|
||||||||||
Total assets less current liabilities
|
1,976,130 | 1,879,635 | ||||||||
|
- 3 -
28 February | 31 August | |||||||||||
2011 | 2010 | |||||||||||
Note | HK$000 | HK$000 | ||||||||||
|
||||||||||||
Non-current liabilities
|
||||||||||||
|
||||||||||||
Deferred tax liabilities
|
85,026 | 55,843 | ||||||||||
Derivative financial instrument
|
7,423 | 11,293 | ||||||||||
Long-term debt and other liabilities
|
124,065 | 123,960 | ||||||||||
|
||||||||||||
|
||||||||||||
|
216,514 | 191,096 | ||||||||||
|
||||||||||||
|
||||||||||||
Net assets
|
1,759,616 | 1,688,539 | ||||||||||
|
||||||||||||
|
||||||||||||
Capital and reserves
|
||||||||||||
|
||||||||||||
Share capital
|
13 | 76,851 | 76,500 | |||||||||
Reserves
|
1,682,765 | 1,612,039 | ||||||||||
|
||||||||||||
|
||||||||||||
Total equity attributable to equity
shareholders of the Company
|
1,759,616 | 1,688,539 | ||||||||||
|
1 |
BASIS OF PREPARATION AND ACCOUNTING POLICIES
|
This unaudited interim financial report has been prepared in accordance with the applicable
disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange
of Hong Kong Limited; and comply with International Accounting Standard (IAS) 34, Interim
Financial Reporting, issued by the International Accounting Standards Board (the IASB) and
Hong Kong Accounting Standard (HKAS) 34, Interim Financial Reporting issued by the Hong
Kong Institute of Certified Public Accountants (the HKICPA). It was authorised for issuance
on 20 April 2011.
|
This unaudited interim financial report has been prepared in accordance with the same
accounting policy adopted in the financial statements for the year ended 31 August 2010,
except for the accounting policy changes that are expected to be reflected in the financial
statements for the year ending 31 August 2011. Details of these changes in accounting
policies are set out in note 2.
|
The preparation of an interim financial report in conformity with IAS 34 and HKAS 34 requires
management to make judgements, estimates and assumptions that affect the application of
policies and reported amounts of assets and liabilities, income and expenses on a year to
date basis. Actual results may differ from these estimates.
|
This interim financial report contains condensed consolidated financial statements and
selected explanatory notes. The notes include an explanation of events and transactions that
are significant to an understanding of the changes in financial position and performance of
the Group since the financial statements for the year ended 31 August 2010. The condensed
consolidated interim financial statements and notes thereon do not include all of the
information required for full set of financial statements prepared in accordance with
International Financial Reporting Standards (IFRSs) issued by the IASB and Hong Kong
Financial Reporting Standards (HKFRSs) issued by the HKICPA.
|
- 4 -
The financial information relating to the financial year ended 31 August 2010 that is
included in the condensed consolidated interim financial statements as being previously
reported information does not constitute the Companys statutory financial statements for
that financial year but is derived from those financial statements. The statutory financial
statements for the year ended 31 August 2010 are available at the Companys registered
office. The independent auditors have expressed an unqualified opinion on those financial
statements in their report dated 9 November 2010.
|
2 |
SIGNIFICANT ACCOUNTING POLICIES
|
The IASB has issued a number of new or revised IFRSs, which term collectively includes IASs
and Interpretations, that are first effective or available for early adoption for the current
accounting period of the Group. The equivalent new or revised HKFRSs, which term collectively
includes HKASs and Interpretations, consequently issued by the HKICPA as a result of these
developments have the same effective date as those issued by the IASB and are in all material
aspects identical to the pronouncements issued by the IASB. None of these changes in policies
would have a material impact on the Groups financial statements.
|
3 |
TURNOVER AND SEGMENT INFORMATION
|
The Group is principally engaged in the provision of international telecommunications
services and fixed telecommunications network services to customers in Hong Kong and Canada.
|
(a) |
Segment information
|
||
The Group has two reportable segments, as described below, which are the Groups
strategic business units. The strategic business units offer different services, and
are managed separately because they require different technology and marketing
strategies. For each of the strategic business units, the chief operating
decision-maker reviews internal management reports on a monthly basis. The following
summary describes the operations in each of the Groups reporting segments:
|
|
| International telecommunications | : | provision of international long distance calls services | ||||
|
||||||||
|
| Fixed telecommunications network | : | provision of dial up and broadband Internet access services, local voice-over-IP services, IP-TV services and corporate data services |
The Groups inter-segment transactions mainly consist of provision of leased lines
services. These transactions were entered into on similar terms as those contracted
with third parties.
|
Six months ended 28 February 2011 | ||||||||||||||||
Fixed | ||||||||||||||||
International | telecomm- | |||||||||||||||
telecomm- | unications | |||||||||||||||
unications | network | |||||||||||||||
services | services | Elimination | Group | |||||||||||||
HK$000 | HK$000 | HK$000 | HK$000 | |||||||||||||
|
||||||||||||||||
Turnover
|
||||||||||||||||
|
||||||||||||||||
External sales
|
98,749 | 727,157 | | 825,906 | ||||||||||||
Inter-segment sales
|
2,840 | 7,625 | (10,465 | ) | | |||||||||||
|
||||||||||||||||
|
||||||||||||||||
Reportable segment turnover
|
101,589 | 734,782 | (10,465 | ) | 825,906 | |||||||||||
|
||||||||||||||||
|
||||||||||||||||
Reportable segment profit
(note 3(b))
|
37,319 | 156,895 | 194,214 | |||||||||||||
|
- 5 -
Six months ended 28 February 2010 | ||||||||||||||||
Fixed | ||||||||||||||||
International | telecomm- | |||||||||||||||
telecomm- | unications | |||||||||||||||
unications | network | |||||||||||||||
services | services | Elimination | Group | |||||||||||||
HK$000 | HK$000 | HK$000 | HK$000 | |||||||||||||
|
||||||||||||||||
Turnover
|
||||||||||||||||
|
||||||||||||||||
External sales
|
110,178 | 675,785 | | 785,963 | ||||||||||||
Inter-segment sales
|
2,833 | 8,116 | (10,949 | ) | | |||||||||||
|
||||||||||||||||
|
||||||||||||||||
Reportable segment turnover
|
113,011 | 683,901 | (10,949 | ) | 785,963 | |||||||||||
|
||||||||||||||||
|
||||||||||||||||
Reportable segment profit
(note 3(b))
|
33,202 | 122,964 | 156,166 | |||||||||||||
|
Fixed | ||||||||||||
International | telecomm- | |||||||||||
telecomm- | unications | |||||||||||
unications | network | |||||||||||
services | services | Group | ||||||||||
HK$000 | HK$000 | HK$000 | ||||||||||
|
||||||||||||
Segment assets
|
||||||||||||
|
||||||||||||
As at 28 February 2011
|
529,479 | 1,754,050 | 2,283,529 | |||||||||
|
||||||||||||
|
||||||||||||
As at 31 August 2010
|
590,888 | 1,660,661 | 2,251,549 | |||||||||
|
(b) |
Reconciliation of reporting segment profit or loss
|
Six months ended | ||||||||
28 February | 28 February | |||||||
2011 | 2010 | |||||||
HK$000 | HK$000 | |||||||
|
||||||||
Segment results
|
194,214 | 156,166 | ||||||
Other income/(losses), net
|
3,210 | (4,251 | ) | |||||
Finance costs, net
|
247 | (12,255 | ) | |||||
|
||||||||
|
||||||||
Profit before taxation
|
197,671 | 139,660 | ||||||
|
- 6 -
(c) |
Hong Kong Broadband Network Limited (HKBN), a wholly-owned subsidiary of the
Company, is a Fixed Telecommunications Network Services (FTNS) licensee and provides
interconnection services to enable delivery of telecommunications service to customers of
different operators. Since the FTNS license was granted by the Telecommunication Authority
(TA) and interconnection services have been provided, HKBN has been billing mobile
operators for the interconnection services provided to them and recognising revenue (mobile
interconnection charges) based on managements best estimate of the amounts to be collected.
In prior years, majority of the mobile operators rejected HKBNs demand for payment of mobile
interconnection charges. As a result of non-payment by certain mobile operators, in 2004, the
Group requested the TA to make a determination (the 2004 Determination) on the level of
mobile interconnection charges payable by one of the mobile operators (mobile operator under
dispute) to HKBN; and the effective date of the determined mobile interconnection charges.
|
||
In June 2007, the TA issued the 2004 Determination which set out the rates of mobile
interconnection charge payable by the mobile operator under dispute for
interconnection services provided by HKBN for the period from 1 April 2002 to 31
August 2004 and the mobile operator under dispute paid mobile interconnection charge
for the relevant period accordingly.
|
Subsequent to June 2007, HKBN entered into contractual agreements with several mobile
operators which agreed to pay mobile interconnection charges based on the 2004
Determination for the period from 1 April 2002 to 31 August 2004 and with respect to
the period from 31 August 2004 at the interim rate stated in the contractual
agreements. The interim rate was subject to adjustment based on final determination of
the TA.
|
In February 2008, since certain mobile operators had still not yet settled their
mobile interconnection charges for interconnection services provided by HKBN, HKBN
requested TA to make a new determination on the rate of mobile interconnection charge
and interest thereon with four mobile operators.
|
In September 2008, the TA accepted HKBNs request for determination on the rate of
mobile interconnection charges for the period from 1 April 2002 to 26 April 2009
payable by the mobile operators that have not reached contractual agreements with
HKBN, and the rate for the period from 1 September 2004 to 26 April 2009 payable by
those mobile operators that have reached contractual agreements with HKBN, and the
interest rate thereon (the 2008 Determination).
|
In May 2010, the TA issued its decision on the 2008 Determination which set out the
rates of mobile interconnection charges payable by the mobile operators under dispute.
|
Included in the accounts receivable balance as at 28 February 2011 are receivables
relating to mobile interconnection charges of HK$4,634,000 (31 August 2010:
HK$39,763,000).
|
4 |
NETWORK COSTS
|
Network costs mainly include interconnection charges paid to local and overseas carriers,
leased line rentals, program fees, and production costs for the IP-TV service, and do not
include depreciation charge which is included in other operating expenses.
|
- 7 -
5 |
OTHER INCOME/(LOSSES), NET
|
Six months ended | ||||||||
28 February | 28 February | |||||||
2011 | 2010 | |||||||
HK$000 | HK$000 | |||||||
|
||||||||
Interest income
|
1,317 | 591 | ||||||
Other income
|
1,183 | 4,946 | ||||||
Net exchange gain/(loss)
|
710 | (138 | ) | |||||
Loss on extinguishment of 10-year senior notes
|
| (9,650 | ) | |||||
|
||||||||
|
||||||||
|
3,210 | (4,251 | ) | |||||
|
6 |
PROFIT BEFORE TAXATION
|
Profit before taxation is arrived at after charging and (crediting) the following:
|
(a) |
Finance costs, net
|
Six months ended | ||||||||
28 February | 28 February | |||||||
2011 | 2010 | |||||||
HK$000 | HK$000 | |||||||
|
||||||||
Interest element of finance leases
|
16 | 21 | ||||||
Interest on 10-year senior notes
|
| 6,069 | ||||||
Interest on bank borrowings and other borrowing costs
|
3,447 | 1,162 | ||||||
Change in fair value of derivative financial instrument
|
(3,870 | ) | 4,973 | |||||
Amortisation of upfront costs on bank borrowings
|
160 | 30 | ||||||
|
||||||||
|
||||||||
|
(247 | ) | 12,255 | |||||
|
(b) |
Other items
|
Six months ended | ||||||||
28 February | 28 February | |||||||
2011 | 2010 | |||||||
HK$000 | HK$000 | |||||||
|
||||||||
Advertising and marketing expenses
|
163,921 | 182,456 | ||||||
Amortisation of deferred expenditure
|
18,181 | 27,484 | ||||||
Depreciation of owned fixed assets
|
105,194 | 97,167 | ||||||
Depreciation of fixed assets held under finance leases
|
298 | 357 | ||||||
Provision for doubtful debts
|
7,431 | 10,759 | ||||||
Gain on disposal of fixed assets
|
(602 | ) | (185 | ) | ||||
|
- 8 -
7 |
TALENT COSTS
|
Six months ended | ||||||||
28 February | 28 February | |||||||
2011 | 2010 | |||||||
HK$000 | HK$000 | |||||||
|
||||||||
Salaries, wages and other benefits
|
133,851 | 129,702 | ||||||
Equity settled share-based transactions
|
2,362 | 1,289 | ||||||
Retirement benefit costs defined contribution plans
|
21,795 | 19,238 | ||||||
Less: Talent costs capitalised as fixed assets
|
(10,343 | ) | (10,927 | ) | ||||
|
||||||||
|
||||||||
|
147,665 | 139,302 | ||||||
|
Talent costs include all compensation and benefits paid to and accrued for all
individuals employed by the Group, including directors of the Company.
|
Talent costs include directors emoluments and research and development cost of HK$5,658,000
(for the six months ended 28 February 2010: HK$5,493,000) but exclude Talent costs of
HK$5,347,000 (for the six months ended 28 February 2010: HK$5,693,000) recorded in network
costs and HK$105,586,000 (for the six months ended 28 February 2010: HK$113,495,000) recorded
in advertising and marketing expenses.
|
8 |
INCOME TAX EXPENSE
|
The provision for Hong Kong Profits Tax is calculated by applying the estimated annual
effective tax rate of 15.2% (six months ended 28 February 2010: 16.7%) to the assessable
profit for the six months ended 28 February 2011. Taxation for overseas subsidiaries is
similarly calculated using the estimated annual effective rates of taxation that are expected
to be applicable in the relevant countries.
|
The amount of income tax expense in the consolidated income statement represents:
|
Six months ended | ||||||||
28 February | 28 February | |||||||
2011 | 2010 | |||||||
HK$000 | HK$000 | |||||||
|
||||||||
Current taxation
|
||||||||
Hong Kong profits tax
|
||||||||
over-provision in respect of prior years
|
| (40 | ) | |||||
Overseas taxation
|
||||||||
provision for interim period
|
1,721 | 1,678 | ||||||
Special tax credit received in respect of prior year
|
(845 | ) | | |||||
Deferred taxation relating to the origination and reversal of
temporary differences
|
29,183 | 21,634 | ||||||
|
||||||||
|
||||||||
Income tax expense
|
30,059 | 23,272 | ||||||
|
- 9 -
9 |
DIVIDENDS
|
(a) |
Dividends attributable to the interim period
|
Six months ended | ||||||||
28 February | 28 February | |||||||
2011 | 2010 | |||||||
HK$000 | HK$000 | |||||||
|
||||||||
Interim dividend declared and paid after the interim period end of
HK15 cents per ordinary share (28 February 2010: HK6.5 cents
per ordinary share)
|
115,277 | 44,383 | ||||||
|
At a board meeting held on 20 April 2011, the Directors of the Company have recommended to
pay an interim dividend of HK15 cents per ordinary share in cash for the six months ended 28
February 2011 (for the six months ended 28 February 2010: HK6.5 cents per ordinary share).
The interim dividend will be distributed on or about 31 May 2011 to shareholders whose names
appear on the register of members of the Company as at the close of business on 18 May 2011.
|
The interim dividend has not been recognised as a liability at 28 February 2011.
|
(b) |
Dividends attributable to the previous financial year, approved and paid during the interim
period
|
Six months ended | ||||||||
28 February | 28 February | |||||||
2011 | 2010 | |||||||
HK$000 | HK$000 | |||||||
|
||||||||
Final dividend in respect of the financial year ended 31 August
2010, approved and paid during the following interim period,
of HK13.5 cents per ordinary share (2010: HK16 cents per
ordinary share)
|
103,735 | 108,735 | ||||||
|
- 10 -
10 |
EARNINGS PER SHARE
|
Six months ended | ||||||||
28 February | 28 February | |||||||
2011 | 2010 | |||||||
HK$000 | HK$000 | |||||||
|
||||||||
Profit attributable to shareholders
|
167,612 | 116,388 | ||||||
|
Weighted average number of ordinary shares
|
Six months ended | ||||||||
28 February | 28 February | |||||||
2011 | 2010 | |||||||
Number of | Number of | |||||||
shares | shares | |||||||
000 | 000 | |||||||
|
||||||||
Issued ordinary shares at the beginning of the period
|
764,997 | 664,180 | ||||||
Effect of share options exercised
|
2,012 | 9,025 | ||||||
|
||||||||
|
||||||||
Weighted average number of ordinary shares at the end of
the period (basic)
|
767,009 | 673,205 | ||||||
Incremental shares from assumed exercise of share options
|
25,877 | 30,771 | ||||||
|
||||||||
|
||||||||
Weighted average number of ordinary shares at the end of
the period (diluted)
|
792,886 | 703,976 | ||||||
|
||||||||
|
||||||||
Basic earnings per share
|
HK21.9 cents | HK17.3 cents | ||||||
|
||||||||
|
||||||||
Diluted earnings per share
|
HK21.1 cents | HK16.5 cents | ||||||
|
11 |
ACCOUNTS RECEIVABLE
|
The aging analysis of the accounts receivable is as follows:
|
28 February | 31 August | |||||||
2011 | 2010 | |||||||
HK$000 | HK$000 | |||||||
|
||||||||
Current30 days
|
41,939 | 41,244 | ||||||
3160 days
|
9,453 | 9,024 | ||||||
6190 days
|
4,960 | 5,245 | ||||||
Over 90 days
(note)
|
13,867 | 50,039 | ||||||
|
||||||||
|
||||||||
|
70,219 | 105,552 | ||||||
Less:
Allowance for doubtful debts
|
(5,160 | ) | (5,823 | ) | ||||
|
||||||||
|
||||||||
|
65,059 | 99,729 | ||||||
|
- 11 -
The majority of the Groups accounts receivable are due within 30 days from the date of
billings. Subscribers with receivable that are more than 3 months overdue are requested to
settle all outstanding balance before further credit is granted.
|
Note: |
The amounts over 90 days for the Group included receivables relating to mobile
interconnection charges of HK$4,634,000 as at 28 February 2011 (31 August 2010:
HK$39,763,000).
|
12 |
ACCOUNTS PAYABLE
|
The aging analysis of the accounts payable is as follows:
|
28 February | 31 August | |||||||
2011 | 2010 | |||||||
HK$000 | HK$000 | |||||||
|
||||||||
Current30 days
|
5,229 | 6,838 | ||||||
3160 days
|
1,129 | 1,982 | ||||||
6190 days
|
152 | 1,647 | ||||||
Over 90 days
|
16,142 | 24,661 | ||||||
|
||||||||
|
||||||||
|
22,652 | 35,128 | ||||||
|
13 |
CAPITAL AND RESERVES
|
Capital | ||||||||||||||||||||||||||||||||
Share | Share | Capital | redemption | Retained | Exchange | |||||||||||||||||||||||||||
capital | premium | reserve | reserve | profits | reserve | Total | ||||||||||||||||||||||||||
Note | HK$000 | HK$000 | HK$000 | HK$000 | HK$000 | HK$000 | HK$000 | |||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
At 1 September 2010
|
76,500 | 1,074,997 | 21,064 | 7 | 513,208 | 2,763 | 1,688,539 | |||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total comprehensive
income for the
period
|
| | | | 167,612 | 1,564 | 169,176 | |||||||||||||||||||||||||
Dividend paid in
respect of previous
year
|
9 (b) | | | | | (103,735 | ) | | (103,735 | ) | ||||||||||||||||||||||
Shares issued upon
exercise of share
options
|
351 | 4,418 | (1,495 | ) | | | | 3,274 | ||||||||||||||||||||||||
Equity settled
share-based
transactions
|
| | 2,362 | | | | 2,362 | |||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
At 28 February 2011
|
76,851 | 1,079,415 | 21,931 | 7 | 577,085 | 4,327 | 1,759,616 | |||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
At 1 September 2009
|
66,418 | 681,208 | 23,232 | 7 | 454,802 | 2,860 | 1,228,527 | |||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total comprehensive
income for the
period
|
| | | | 116,388 | (200 | ) | 116,188 | ||||||||||||||||||||||||
Dividend paid in
respect of previous
year
|
9 (b) | | | | | (108,735 | ) | | (108,735 | ) | ||||||||||||||||||||||
Shares issued upon
exercise of share
options
|
1,863 | 19,818 | (6,866 | ) | | | | 14,815 | ||||||||||||||||||||||||
Equity settled
share-based
transactions
|
| | 1,289 | | | | 1,289 | |||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
At 28 February 2010
|
68,281 | 701,026 | 17,655 | 7 | 462,455 | 2,660 | 1,252,084 | |||||||||||||||||||||||||
|
- 12 -
1. |
The Group turnover increased by 5.1% year-on-year to HK$825.9 million.
Revenue growth driven
mainly by an increase in FTNS businesss turnover by 7.6% to HK$727.2 million, which more than
offset the decline in International Telecommunications Service business (IDD) of 10.4%
year-on-year to HK$98.7 million. In absolute terms, FTNS revenues increased by HK$51.4 million
versus IDD revenues decline of HK$11.5 million. FTNSs turnover contributed to 88.0% of the
Group turnover in 1H FY2011 (86.0% in 1H FY2010).
|
2. |
Strong growth in core EBITDA and net profit.
Monetising the critical mass we achieved in
FY2010, our core EBITDA for 1H FY2011 increased by 16.7% year-on-year to HK$301.6 million,
resulting in core EBITDA margin expansion to 36.5% versus 32.9% a year ago. During 1H FY2011,
we also benefited from the full period net interest savings from repurchase and redemption of
our senior notes during FY2010, and our profit attributable to shareholders increased by 44.0%
year-on-year to HK$167.6 million in 1H FY2011 with basic earnings per share at HK21.9 cents
(HK17.3 cents in 1H FY2010).
|
3. |
Continuous broadband subscription growth.
Despite fierce competition and increasing our core
symmetric 100Mbps broadband service from HK$99/month to HK$169/month on 1 September 2010, for
the six months to 28 February 2011, we achieved 25,000 net additions to 551,000 broadband
subscriptions, which represents a dominant 68% of total market growth estimated at 37,000. Our
estimate of total market growth is based on the latest official statistics from The Office of
the Telecommunications Authority (OFTA)
(http://www.ofta.gov.hk/en/datastat/eng_cus_isp.pdf), for five months period of 2,139,282 as
of 31 January 2011 less 2,108,417 as 31 August 2010 x 6/5. For clarification, we report
subscriptions, which are consistent with the OFTA statistics.
|
4. |
131% increase in Dividend Per Share to HK15 cents.
For the six months to 28 February 2011, we
have declared an interim dividend of HK15 cents per ordinary share representing a payout of
about 68% in profit attributable to shareholders. Whilst this is higher than same period last
year, it is
consistent with our dividend payout policy announced last year of between 60-90% of profit
attributable to shareholders.
|
- 13 -
- 14 -
28 February | 31 August | |||||||
2011 | 2010 | |||||||
HK$000 | HK$000 | |||||||
|
||||||||
Repayable within one year
|
5,114 | 10,702 | ||||||
Repayable in the second year
|
101 | 105 | ||||||
Repayable in the third to fifth year
|
123,964 | 123,855 | ||||||
|
||||||||
|
||||||||
Total
|
129,179 | 134,662 | ||||||
|
- 15 -
- 16 -
- 17 -
1. |
Broadband subscriptions growth from 526,000 as of 31 August 2010 to exceed 580,000 as of 31
August 2011 (previously was 600,000 subscriptions)
|
2. |
EBITDA to exceed HK$580 million (unchanged)
|
3. |
Capital expenditure on core telecommunications business of approximately HK$350 million
(unchanged)
|
- 18 -
|
By Order of the Board | |
City Telecom (H.K.) Limited | ||
Lai Ni Quiaque | ||
Executive Director, Chief Financial Officer and | ||
Company Secretary |
- 19 -
1 Year Hong Kong Television Network Ltd. (MM) Chart |
1 Month Hong Kong Television Network Ltd. (MM) Chart |
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