Unveiling the Intriguing Paradox: HKT's 5G Growth Slows, Yet Revenue Soars

Table

1. HKT Sees Slowing 5G Growth but Strong Revenue
   1. Conclusion

HKT Sees Slowing 5G Growth but Strong Revenue

Hong Kong-based operator HKT recorded growth in its mobile business in the first half of 2023, despite weaker 5G adoption, driven by a gradual recovery in roaming.

The operator acknowledged uptake of 5G services slowed year-on-year, growing 30.7 per cent to 1.2 million, accounting for 35 per cent of post-paid customers as of end-June. A year earlier its 5G user base more than doubled to just over 900,000. Net 5G adds dropped from more than 450,000 a year earlier to less than 300,000.

Mobile service revenue in H1 grew 5 per cent to HKD3.8 billion ($486.4 million), while mobile equipment sales slid 11 per cent to HKD1.2 billion. In an earnings release, the company said it expects mobile device sales to rise in the second half as an economic recovery gains momentum and new handsets are released.

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The number of roamers and consumer outbound roaming in June surpassed pre-Covid levels, with revenue surging 166 per cent year-on-year.

Post-paid subscribers in the six-month period increased 2 per cent to 3.4 million at end-June, with prepaid subs falling 16 per cent to 1.3 million. Post-paid ARPU was flat at HKD187.

Net profit increased 2.2 per cent year-on-year to HKD2 billion; total revenue grew by 2 per cent to HKD16.4 billion.

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Local data services, which include broadband, increased 7 per cent to HKD6.2 billion. Pay-TV services were flat at HKD1.2 billion.

HKT, a leading mobile operator in Hong Kong, has reported slower growth in its 5G services. Despite this, the company has recorded an increase in revenue, driven by a recovery in roaming services.

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In the first half of 2023, HKT experienced a 30.7% year-on-year growth in its 5G user base, reaching 1.2 million subscribers. This accounts for 35% of its post-paid customer base. While the growth rate has declined compared to the previous year, it is still a significant milestone in the operator's expansion into the 5G market. The net addition of 5G users, however, decreased from over 450,000 to less than 300,000.

HKT's mobile service revenue for the first half of the year reached HKD3.8 billion ($486.4 million), representing a 5% increase compared to the same period last year. However, mobile equipment sales declined by 11% to HKD1.2 billion. The company expects mobile device sales to improve in the second half of the year as the overall economic recovery gains momentum and new handsets are released.

One area where HKT has seen significant growth is in roaming services. The number of roamers and consumer outbound roaming in June surpassed pre-Covid levels, resulting in a 166% year-on-year revenue surge. This indicates a positive trend in travel and international connectivity.

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Despite the slower growth in 5G services, HKT's post-paid subscriber base increased by 2% to 3.4 million at the end of June. However, the prepaid subscriber count decreased by 16% to 1.3 million during the same period. The average revenue per user (ARPU) for post-paid customers remained flat at HKD187.

Overall, HKT reported a 2.2% year-on-year increase in net profit, reaching HKD2 billion. The total revenue for the company grew by 2% to HKD16.4 billion. Local data services, including broadband, saw a 7% increase in revenue, reaching HKD6.2 billion. Pay-TV services remained stable at HKD1.2 billion.

Conclusion

HKT's 5G growth may have slowed, but the company's overall performance remains strong. With a positive outlook for mobile device sales and the recovery of roaming services, HKT is well-positioned to capitalize on the increasing demand for connectivity in Hong Kong. To stay updated with the latest news and developments in the telecom industry, subscribe to our daily newsletter.

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