City Telecom expects 50% rise in profit

Robert Clark
22 Sep 2009
00:00

City Telecom, the parent of Hong Kong’s second largest ISP, Hong Kong Broadband, has forecast a 50% spike in full-year profit.

The company said Monday that, based on unaudited results, sales could rise by more than 10% and ebitda by more than 30% over 2008.

Last year it posted net income of HK$125.2 million ($16.1 million) and ebitda of HK$378.0 million on turnover of HK$1.30 billion.

City said the higher profit was due to the improvement in its core fixed-line business and a HK$31.3 million net gain in senior notes buyback and cancellation.

At the end of its financial year on August 31, it had 391,000 broadband subs – up 24% over the year – and 382,000 VoIP subs, up 16%.

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