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SmarTone's Profits Decline 24% Amid Collapse in Roaming Revenues

SmarTone's Profits Decline 24% Amid Collapse in Roaming Revenues Image Credit: SmarTone

SmarTone Telecommunications, a leading communication service providers in Hong Kong, last week announced its financial results for the year ended 30 June 2020.

SmarTone was faced with one of the most challenging years as the COVID-19 pandemic severely affected both business operations, as well as our customers’ way of life. 

 

In the last financial year, SmarTone recorded a 24% drop in underlying profit from $581 million to $440 million, excluding the one-off cost adjustment in FY19 and an impairment in FY20. The decline was primarily due to the collapse in roaming revenues (both inbound and outbound) as international travel was severely restricted.

Leaving the impact of roaming aside, the core business of SmarTone was resilient during the last financial year. The number of subscribers increased by 6% to 2.7 million, with postpaid churn rate improved to an industry-low of 0.7% due to SmarTone’s outstanding network performance and customer services. 

The company said it also saw strong growth in the enterprise business with its solutions widely recognised for helping corporations to improve performance and enhance efficiency. With the launch of 5G service in May, the service uptake has exceeded expectation. 

Allen Fung, Deputy Chairman and Executive Director of SmarTone Telecommunications Holdings
Looking ahead, the coming year is still likely to be a very difficult one with the uncertain economic environment, but SmarTone sees a number of opportunities for the company to expand revenue streams. 

Author

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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