PCCW, Hutch HK post double-digit profit gains

Dylan Bushell-Embling
24 Mar 2011
00:00

PCCW and the Hong Kong wing of Hutchison both reported double-digit increases in profit for 2010, and grew their mobile customer bases despite an increasingly saturated market.

PCCW said its profit grew 28% to HK$1.93 billion ($247.6 million), regardless of what group managing director Alex Arena said had been “intense competitive pressure in the Hong Kong telecommunications market.”

But core revenue – which excludes contribution from its property development and investment business – rose by a much more modest 3% to HK$21.5 billion.

The company said its 3G user base had increased by 26% year on year, while total mobile customers grew 4% to 1.48 million.

PCCW's 3G revenue is up 153% since the operator began concentrating on data and smartphones in 2008, the operator said. Smart device penetration also increased to 62% of the company's 3G user base in 2010, from 45% in 2009.

The company increased its broadband customer base 5%, but overall fixed-line subscribers stayed flat.

PCCW said the restructuring of its Reach international cable joint venture with Australia's Telstra would allow it to improve its operating margin.

Hutchison Telecom Hong Kong Holdings meanwhile reported a 61% increase in profit to HK$755 million.

The company, a subsidiary of Hutchison Whampoa which operates the 3 and HGC brands in Hong Kong and Macau, also grew its revenue 17% to HK$8.44 billion.

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