SmarTone Tele (00315) 1H net down 2% to HK$393m; div HK$0.27

    SmarTone Telecommunications (00315) said its profit attributable to equity holders for the six months ended 31 December 2016 dropped 2.3% year-on-year to HK$393 million.
  The interim net profit was unchanged compared to the previous six months.
  Basic and diluted earnings per share were HK36.4 cents.
  Group service revenue was HK$2,674 million, a decline of 4% over the same period last year and a slight decline of 1% over the previous half. The decline in service revenue was due to customers continuing to migrate to SIM Only plans, weakness in the prepaid segment and the increasing use of OTT services affecting voice roaming revenues.
  Handset and accessory sales dropped 64% year-on-year to HK$2,699 million, weighing on total revenue which declined by 47% year-on-year and 34% half-on-half. While revenue has decreased substantially, the impact on profitability was limited as margin improved. Handset EBIT was HK$44 million, up 3% from the previous six-month period.
  Hong Kong customer numbers increased 1% year-on-year to 2 million and mobile postpaid ARPU was stable at HK$299 with minimal dilution (first half of 2015/16: HK$301). Average postpaid churn rate for the period was 1.2%.
  The proposed interim dividend is HK27 cents (2015: HK27 cents) per share, payable on or about 12 April 2017 with an option to receive new and fully paid shares in lieu of cash under a scrip dividend scheme.