HONG KONG, April 20, 2016 /PRNewswire/ -- HKBN Ltd. ("HKBN" or the "Company"; SEHK stock code: 1310) today reported its unaudited consolidated results for the six months ended 29 February 2016. During the period, the Company continued its subscription and revenue growth in both residential and enterprise businesses, setting a strong foundation for future growth. Key highlights from the interim period include:
- Revenue and EBITDA increased year-on-year by 9% and 6% respectively to HK$1,226 million and HK$511 million.
- Net additions of residential broadband subscriptions accelerated to 38,000 (net additions in 1H FY2015: 30,000) for a total of 792,000 as of 29 February 2016; market share was 37.7% as of 31 January 2016*, up from 36.6% as of 31 August 2015.
- Enterprise revenue rose 17% year-on-year to HK$269 million.
- Net Profit at HK$135 million versus HK$47 million loss for same period last year while Adjusted Net Profit increased year-on-year by 31% to HK$210 million. Adjusted Free Cash Flow maintained at HK$185 million.
The Board of Directors has recommended the payment of an interim dividend of 20 Hong Kong cents per share.
Accelerative subscription and market share growth from taking advantage of the disruptive market window created by OTT (Over-the-Top) player entries
Residential revenue grew by 3% year-on-year to HK$899 million as HKBN focused on gaining subscriber market share by converting our competitors' legacy copper-based customers to our fibre-based services at attractive prices. Residential ARPU decreased slightly to HK$178, as a result of the Company's strategic decision to accelerate customer acquisition growth by taking advantage of the disruptive window created by entry of OTT players. HKBN's market share by broadband subscriptions increased to 37.7% as of 31 January 2016*, up from 36.6% as of 31 August 2015.
During the interim period, the Company has worked closely with OTT operators such as LeEco and TVB. HKBN joins hands with OTT partners to offer the best value triple play package with OTT content.
Stimulating revenue and subscription growth of the enterprise business
The Company's enterprise revenue grew by 17% year-on-year to HK$269 million. Its enterprise business continued to build on positive momentum with a focus in the small and medium sized enterprise (SME) segment by offering an attractive value proposition with appealing products and services at competitive prices. During the interim period, HKBN achieved 4,000 net additions to 43,000 enterprise customers while maintaining the enterprise ARPU at HK$1,017. The market share by broadband subscriptions increased to 15.4% as of 31 January 2016*, up from 14.3% as of 31 August 2015.
Completing the acquisition of New World Telecom on 31 March 2016, the Company has more than doubled its enterprise revenue to over HK$1 billion and achieved an estimated market share of approximately 5%.
Setting the foundation for Future GROWTH
"We are building a strong foundation for future growth," said William Yeung, Chief Executive Officer and Co-Owner, and NiQ Lai, Chief Talent & Financial Officer and Co-Owner, of HKBN. "Looking ahead, we will continue working with OTT operators to seize the OTT disruptive opportunities, and after integrating with New World Telecom, our enterprise business will be running on all cylinders to capture a greater share of the enterprise market."
For details of HKBN's interim results in FY2016, please refer to the announcement:
Please click here for Appendix: Shareholder Letter
*Based on our broadband subscriptions and the latest available OFCA statistics as of 31 January 2016.
About HKBN Ltd.
HKBN Ltd. (SEHK Stock Code: 1310), operating through Hong Kong Broadband Network Limited and New World Telecommunications Limited, is the largest provider of residential fibre broadband services (symmetrical 100Mbps and above) in Hong Kong by number of residential subscriptions, with a core purpose to "Make Our Hong Kong a Better Place to Live". HKBN offers an array of world-class enterprise solutions, including broadband and data connectivity, voice communication, managed Wi-Fi solutions, Cloud solutions and IT advisory services, as well as a diversified portfolio of residential broadband and Wi-Fi access, communication and entertainment services. HKBN owns an extensive fibre network in Hong Kong, which covers over 2.1 million residential homes passed, representing approximately 79% of Hong Kong's total residential units, and more than 2,200 commercial buildings. HKBN takes great pride in developing its 2,900 plus Talents into a competitive advantage.
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SOURCE Hong Kong Broadband Network Limited