INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2009
INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2009 HIGHLIGHTS as Posted by CTI ➢ Solid Fixed Telecommunications Network Service (FTNS) subscription growth of 71,000, net to 872,000 during the period ➢ Being the fastest growing and second largest broadband service provider in Hong Kong, with net additions of 34,000 to 350,000 as at 28 February 2009 ➢ Turnover grew by 15.6% year-on-year to HK$721.2 million driven by higher revenue contribution from our FTNS business of 24.8% year-on-year to HK$592.8 million ➢ EBITDA increased by 24.0% year-on-year to HK$232.0 million with EBITDA margin increased from 30.0% to 32.2% mainly due to the growing contribution from the higher margin FTNS business ➢ Net profit up 57.7% year-on-year to HK$75.3 million with basic earnings per share amounted to HK11 .6 cents ➢ Balance sheet continued to improve with net debt to annualized EBITDA of 0.3x ➢ Declared an interim dividend of HK3 cents per ordinary share
The press release from March 2009 estimated that turnover, revenue, and earnings would increase by 10, 20 and 40 percent (respectively). The actual rates of increase are 16, 24, and 58 percent (respectively). So the numbers are indeed better than they had estimated. Will share price continue to appreciate? Let's hope so, but given how the stock trades, I would not count on it (nor get discouraged if it doesn't go up further). City Telecom is doing a great job.