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PCCW reports 16% drop in first half profit

15 Sep 2006
00:00
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(Associated Press via NewsEdge) Hong Kong's largest fixed-line phone operator PCCW said its first-half net profit fell 16%, on a one-off disposal gain in the year-earlier period.

Net profit for the six months ended June 30 fell to $102 million from $122 million, the company said.

Revenue increased to $1.81 billion from $1.50 billion during the period.

The net profit was lower than the average estimate of HK$902.25 million ($115.7 million) in a Dow Jones Newswires poll of four analysts.

PCCW said in a statement that its first-half results were 'positive,' reflecting a continued recovery in its core business as well as growth in its pay TV operations and property unit.

'We look forward with optimism to the second half of 2006 and beyond, as the strengthened financial position and stabilization of the core business has laid a firm foundation for the future,' deputy chairman and group managing director Jack So said in a statement.

Core telecom revenue rose to HK$7.41 billion ($952.2 million), up from HK$7.39 billion ($949.6 million) in the year before.

The company said property sales at its luxury Bel-Air residential development contributed revenue of $676 million in the six months, up 58% on year.

It said its pay-television unit NOW TV had 654,000 subscribers at the end of August, up from 608,000 at the end of June.

© 2006 The Associated Press

© 2006 Dialog, a Thomson business. All rights reserved

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