Roaming business surge boosts HKT

Cici Cao

HKT Trust and HKT (6823) said yesterday that its net profit rose nearly 2 percent to HK$5.07 billion in 2024 from 12 months ago on the back of surging roaming business.

Group managing director Susanna Hui Hon-hing also said the telecom provider will not be cutting prices, when commenting about China Mobile's (0941) bid for rival HKBN (1310).

HKT's interim distribution rose 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 amid sluggish mobile product business, while sales fell by 8 percent due to weak consumption.

Total earnings before interest, taxes, depreciation, and amortization grew by 3 percent to HK$13.74 billion, thanks to improvements in efficiency and the deployment of artificial intelligence applications.

The adjusted funds flow rose by 3 percent.

Roaming revenue rose by 37 percent, reaching 98 percent of pre-pandemic levels, as more locals traveled to the mainland and overseas.

Hui said that cutting prices would spark involution trends and not contribute to growth in the local telecom industry. She declined to say whether a successful China Mobile bid for HKBN would kick off a price war, noting that the deal has not yet come though. If the bid succeeds, she said HKT will take a "pragmatic approach" to any market changes.

In other news, HKT has appointed Zhao Xingfu as a non-executive director of the trustee-manager and the company.

Zhao is the general manager of the finance department of China Unicom (0762).