Hong Kong’s SmarTone has reported a 15% slump in net profit for the financial year ending in June, as the company felt the brunt of the ongoing maturation of the smartphone market.
Net profit declined to HK$797 million ($102.7 million), as handset earnings crashed 77% back to historical levels due to the impact of this maturation on the smartphone segment.
Group total revenue fell 2% to HK$18.36 billion, with service revenue also declining 2% due in part to lower roaming and pre-paid revenue.
But net of handset subsidy amortization service revenue stayed flat at HK$4.79 billion due to underlying growth in the operator’s local postpaid business.
Hong Kong customer numbers grew 1% to 1.97 million, with postpaid churn remaining unchanged at 0.9%. Mobile postpaid ARPU meanwhile rose 2% to HK$301.
While SmarTone noted that the Hong Kong telecoms market remains competitive, the operator expressed optimism about its prospects for the current financial year. SmarTone’s financial report notes that the company is “well-placed to capture industry opportunities and bring value to both customers and shareholders in the long term.”