Hong Kong enterprises should expect the adverse impact of the coronavirus pandemic to become more evident in the coming months, telecommunications tycoon Richard Li Tzar-kai has warned.
Li, who’s executive chairman of HKT Trust and HKT-SS, said the outbreak has severely hit the company’s operations, with foot traffic at its retail outlets having plunged in the past few months.
The company’s broadband business has registered significant growth during the pandemic. The company launched 5G services last month and this business segment will become the long-term growth engine
Richard Li Tzar-kai,
executive chairman of HKT Trust and HKT-SS
He told the company’s annual shareholders’ meeting on Friday that consumers have become prudent in picking new cellphones, while revenue from roaming services has fallen as a result of travel curbs imposed by many countries and regions.
“However, the demand for reliable broadband and mobile communications by the general public and private companies has not diminished. The company’s broadband business has registered significant growth during the pandemic,” he said. “The company launched 5G services last month and this business segment will become the long-term growth engine.”
Li — the youngest son of magnate Li Ka-shing — said HKT Trust and HKT-SS is committed to retaining dividend payouts along with sturdy business.
The telecoms carrier said it will exercise “extreme prudence” in cost control as the pandemic has dealt a devastating blow across many sectors.
HKT Trust and HKT-SS is one of the city’s largest telecommunications companies with a dominant position in local fixed-line, mobile, IDD and broadband services.
HKT Group has been a subsidiary of PCCW since 2000. PCCW shareholders approved spinning off assets of HKT Trust and HKT-SS as one single stapled security to commence trading on the Hong Kong Stock Exchange in November 2011.
The share price of HKT Trust and HKT-SS edged up 0.80 percent to close at HK$12.66 on Friday.
