CTEL Hong Kong Television Network Ltd. (MM)

HONG KONG, May 18 /Xinhua-PRNewswire-FirstCall/ -- Highlights: -- Return to profitability with profits attributable to shareholders of HK$18.2 million -- Strong year-on-year improvement in EBITDA margin increased from 18.8% to 33.5%, delivering 71.9% growth in EBITDA to HK$188.2 million -- Fixed Telecom Network Services (FTNS) turnover increased by 9.9% to HK$398.8 million, with subscriptions grew by 25,000 to 641,000 -- New contract broadband blended average revenue per user (ARPU) increased by 43% year-on-year to HK$175 per month -- Basic earnings per share amounted to HK3 cents -- Declared an interim dividend of HK4 cents per share City Telecom (HK) Limited (SEHK:1137)(NASDAQ:CTEL) ('The Group') today announced interim results of 2007 for the six months ended 28 February 2007. During the period under review, the Group returned to profitability with profits attributable to shareholders for 1H FY07 of HK$18.2 million, compared to a loss of HK$55.2 million for 1H FY06. Basic earnings per share amounted to HK3 cents (2006 loss per share: HK9 cents). For the six months to 28 February 2007, EBITDA margin increased from 18.8% to 33.5% year-on-year, delivering 71.9% growth in EBITDA to HK$188.2 million. The Group's revenue has slightly decreased by 3.6% year-on-year to HK$562.3 million with growth in FTNS by 9.9% to HK$398.8 million being insufficient to cover the 25.9% decline in IDD to HK$163.5 million. FTNS is now our dominant revenue component, contributing 70.9% of our total revenue. 'After two challenging years, I am very pleased to announce that we finally turned from loss to profit in 1H FY07. Trends on different aspects on our business lines, such as number of subscribers, Average Revenue Per User and EBITDA have all reported significant growth or improvements this year. These results strengthened our confidence, proving that our direction for development in the past few years and for the future is on the right track,' Chairman of the Group, Ricky Wong said. Additional information on City Telecom can be found at http://www.ctigroup.com.hk/ . For enquiries, please contact: Corporate Communications Jessie Cheng Tel: +852-3145-4118 Fax: +852-2199-8372 Email: Investor Relations Peggy Chan Tel: +852-3145-6068 Fax: +852-2199-8655 Email: DATASOURCE: City Telecom (HK) Limited CONTACT: Ms Jessie Cheng of City Telecom (H.K.) Limited, +852-3145-4118, or Web Site: http://www.ctigroup.com.hk/

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