SmarTone’s profit rises 10%
Hong Kong wireless carrier SmarTone Telecommunications Holdings Ltd. (0315.HK) on Thursday announced its revenue rose 6% year-over-year to HK$6.6 billion ($846 million) in its fiscal year through June, while its profit climbed 10% to HK$525 million.
Revenue from services and other related segments declined, with average revenue per user (ARPU) for monthly mobile service plans slipping to HK$220 from HK$222 a year earlier. But rising handset and accessory sales offset the decline. Meanwhile, stringent cost controls and improving operational efficiencies helped drive down staff costs and other operating expenses by 8% and 4% year-over-year, respectively.
But the true driver behind the company’s earnings growth didn’t stem from its core operations. Instead, it owed primarily to the absence of expected credit losses on financial assets at amortized cost, compared with a loss of HK$50 million in the prior year.
Shares of SmarTone opened down 0.2% at HK$4.80 on Friday. The stock is down about 10% from its 52-week high.
By Lau Chi Hang
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