International Telecommunications Services

With the disposal of wholesale IDD and overseas calling cards business, the fixed network service business becomes the focus for the international telecommunications segment.

During the financial year ended 31 March 2009, the turnover for the segment, including the discontinued operation of wholesale IDD and overseas calling card business, decreased 45% to HK$253,059,000, of which HK$14,509,000 was from the remaining fixed network services business. This turnover included 6 months of operation for the wholesale IDD and overseas calling card business which was disposed at the end of September resulting in a capital gain of HK$212,932,000.

Fixed network service business holds one of the Fixed Telecommunications Network Service licenses in Hong Kong. It maintains a fiber-ring in Hong Kong with key points-of-interconnections with all key fixed network operators. Its core service is the "0050" prefix retail IDD service, which had a total of 342,000 registered subscribers at end of the March 2009. Revenue for the "0050" prefix retail IDD service remained relatively flat over the previous year. Turnover maintained at HK$14,509,000 with a gross margin of 11% but incurred an operating loss of HK$2,938,000, primarily due to the high overhead cost in maintaining the fixed network platform. The Group is currently evaluating various cost control measures and exploring some strategic co-operations with key partners to leverage the existing resources and maximise the return to investors.
 

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