Exodus to pressure broadband, says HKT

HKT's (6823) interim net profit inched up 0.53 percent year-on-year to HK$1.91 billion but it warned income from its broadband service will be under pressure with more people moving out of Hong Kong.

The Hong Kong-based telecom company declared an interim dividend of 31.36 HK cents, compared to 30.70 HK cents one year ago.

Total revenue grew 3 percent to HK$16.16 billion, boosted by the strong demand for broadband services and increasing adoption of 5G services, as more and more people turned to work from home amid the fifth wave of the Covid pandemic.

HKT's telecommunication services reported a 5 percent rise in turnover to HK$11.60 billion, including a 3 percent increase contributed by broadband services.

However, managing director Susanna Hui Hon-hing expects broadband services might be pressured by the trend that an increasing number of people are moving out of Hong Kong.

The income of the mobile sector declined 3 percent to HK$4.94 billion including mobile product sales dropped 16 percent to HK$1.29 billion.

Mobile services saw revenue rise by 2 percent to HK$3.65 billion benefiting from the expanding 5G services users group which increased to 918,000 by July and accounted for 28 percent of HKT's post-paid customers.

Cost of sales climbed 8 percent year-on-year to HK$8.13 billion due to higher costs in international voice services and enterprise projects.

Revenue is also dragged down by HK$2.83 billion for depreciation and amortization expenses primarily from mobile spectrum reassignment, 3 percent higher than one year ago.