Roaming business surge boosts HKT

HKT Trust and HKT Ltd (6823) posted a nearly 2 percent rise to HK$5.07 billion in net profit last year from 12 months ago, thanks to growing roaming revenue.

The result came as the operator said it has no intention to engage in a price war, citing China Mobile's (0941) acquisition proposal for HKBN (1310).

Cutting prices or sparking involution will not contribute to the continued business growth in the local telecom industry, said group managing director Susanna Hui Hon-hing.

The telecommunication service provider also increased interim distribution by 3.2 percent year-on-year to 45.88 HK cents per stapled unit, resulting in a total distribution of 78.80 HK cents.

Total revenue edged up by 1.2 percent to HK$34.75 billion, dragged down by sluggish mobile product sales.

The sales declined by 8 percent in 2024 compared to the previous year, due to weak consumption sentiment.

Total earnings before interest, taxes, depreciation, and amortization grew by 3 percent to HK$13.74 billion, fuelled by efficiency improvements including the company’s deployment of various artificial intelligence applications.

Its adjusted funds flow increased by 3 percent.

Notably, total roaming revenue in the year recorded a 37 percent year-on-year growth, reaching 98 percent of pre-pandemic levels, boosted by more locals traveling abroad and to the mainland.

Meanwhile, the company has appointed Zhao Xingfu as a non-executive director of the trustee-manager and the company.

Zhao is currently the general manager of the finance department of China United Network Communications Group Company.

STAFF REPORTER