-- (Hong Kong Dollar is Translated to United States Dollar
At a Rate of HK$7.7988 To US$1) * EBITDA increased by 135% to HK$240 million (US$31 million) before restructuring costs * Loss for the year decreased by 57% to HK$91 million (US$12 million) before restructuring costs * Subscriber numbers increased by 9% to 603,000 * Churn rate reduced to 3.5% in December 2002 * Stable postpaid ARPU at HK$209 (US$27) * 10% higher productivity achieved through reduction in operating expenses
HONG KONG, March 25 /PRNewswire-FirstCall/ -- SUNDAY Communications Ltd. today announced its results for the 2002 financial year ending 31 December 2002. Earnings before interest, tax, depreciation, amortisation and share of losses from joint ventures (EBITDA) rose by 135% to HK$240 million excluding one-off restructuring costs. The net loss decreased by 57% to HK$91 million before restructuring costs, and since January 2003, SUNDAY has been recording net profits on a month-to-month basis.
"The 2002 financial year was an important one for SUNDAY," said Group Managing Director Bruce Hicks. "In a competitive market, we made further improvements in both our financial performance and customer base. At the same time, we brought changes to our business that will ensure continued increases in profitability in 2003 and create a competitive platform for the new era of mobile communications that is just beginning."
Increased Subscribers, Lower Churn
Growth in mobile services business revenue of 5% to HK$1,218 million was driven by increased subscriber numbers, which reflects SUNDAY'S success in its strategy of market segmentation. "In the past two years, mobile communications in Hong Kong has shifted from being a high-growth mass market to one characterised by saturation of penetration, where opportunities to increase revenues centre on delivering tailored services including new data services to well understood user groups," Mr. Hicks said.
The Group's total subscriber base rose 9% over 2001 to 603,000. In this regard, it is important to note that the methodology of reporting adopted by SUNDAY is very conservative and fully accounts for all types of subscriber activations, disconnections and usage. Average revenue per user (ARPU) was broadly flat, reversing the down trend which had prevailed in the Hong Kong market for the preceding four years. Short message service (SMS) and multi- media messaging service (MMS) volumes grew sharply, boosted by events such as the football World Cup and festivals.
Contributing to the improved performance was a much lower churn rate and hence lower average acquisition cost. Churn more than halved from 7.8% at the start of the year to 3.5% by year end. Again, it is emphasized that SUNDAY uses churn calculation methods that are very conservative.
Quality of Products and Services
SUNDAY's ability to achieve revenue growth during the year also testifies to the enhancements we made to its network, customer service, as well as the new or improved products and services introduced.
The number of cell sites increased by 17% to over 1,050 locations. Unlike many companies, SUNDAY runs these sites on a single network, ensuring a high quality of coverage and call performance for users. Customer service quality was greatly enhanced by the establishment of an operations centre in Shenzhen in mainland China. The greater resources and high productivity this centre affords have enabled the Group to improve customer response.
The new products and services introduced by SUNDAY in the fourth quarter of 2002 targeted a wide variety of consumer segments and followed the principles laid down in SUNDAY's four core values of simplicity, transparency, quality and value-for-money:
"Location Based Services" enables corporate customers to monitor effectively their fleets of vehicles, field staff or valuable parcels on a real time basis.
"My Album" is a one-stop-shop for personalised MMS photos, with music, voice and text to MMS-enabled handsets, as well as email and with made-to- order printouts available at over 450 Hong Kong locations.
"SUNDAY Look! Hear!" features MMS entertainment through popular content downloads of celebrity photos, cartoon and comic characters and e-cards.
"SUNDAY Games" brings a real life "Game Store" experience to mobile handsets through new collections of Java games.
"Handy Workstation" is a complete mobile email and Personal Information Management (PIM) solution enabling mobile users to access corporate email accounts and up to 10 POP3/IMAP4 Internet email accounts.
"ICQ for SMS" allows users to stay in touch with ICQ friends 24 hours a day through a handset with a short messaging function.
"MSN Mobile Messenger" allows users to send, receive and reply to instant messages from their online contacts who are using MSN Messenger on a computer or a mobile phone.
Higher Productivity
During 2002, SUNDAY put considerable emphasis on raising productivity. Operating expenses before depreciation and restructuring costs fell by 10% over 2001 and as a percentage of mobile services revenue, fell from 73% to 63%. The operations centre in Shenzhen also contributed to lower costs in 2002, although the main benefits will be realised beginning in 2003. The overall reduction of operating expenses came despite an expanded subscriber base, improved service quality and new services.
Further improvements in productivity resulted from major organisational changes during the year, whose benefits will accrue more forcefully from 2003. These changes reorient the Group towards addressing the market in a more targeted manner and include the creation of teams covering product development, sales, marketing and retention focused on specific market segments rather than broad product categories. In addition, in December SUNDAY reduced its workforce in an initiative that will generate significant cost savings beginning in 2003.
Outlook
Looking forward, Mr. Hicks said that he expects 2003 to continue to be a competitive year for the industry, in which SUNDAY will continue to post improved results, following the solid groundwork laid down in 2002. "We will focus our attention on profitability through improving customer retention, growing the subscriber base, increasing ARPU and further enhancing productivity," he said.
Market segmentation will continue to be a core strategy. The new wireless data services and MMS interoperability introduced in the fourth quarter of 2002 are expected to provide additional revenue growth in 2003. Wireless data service usage is expected to grow at faster rates as more mobile phones supporting these services are introduced.
"The key to success in 3G services is a cost-effective platform that delivers creative and tailored services. This is what we have," said Mr. Hicks. "We have completed comprehensive planning of all network, IT and service delivery systems required for the launch of 3G services and in preparation are in active discussions with vendors and financial institutions, to enable us to roll out our 3G service on schedule and on a sound commercial basis, when the time is right."
"It is ever more evident that a 3G license will be essential for success in the future and that alternative ways of delivering wireless communications services based on either older technology or mobile virtual network operations will not be competitive. We expect that the arrival of 3G commercially will be a catalyst for the long-expected consolidation in the industry, to the benefit of 3G license holders. "
"SUNDAY's competitive strengths are becoming ever more relevant as a new generation of technologies begins to transform the way people use and think about mobile communications."
About SUNDAY
SUNDAY is an innovative developer and provider of wireless communications and data services in Hong Kong. SUNDAY began commercial operations in 1997. The company's core strategy is to capitalise on the convergence of wireless communications and data technologies to develop innovative services and solutions. Today, SUNDAY enhances people's lives by delivering targeted wireless data applications and services to meet their specific lifestyle needs. Owning a 3G mobile license, SUNDAY is well positioned to further develop a more advanced range of 3G wireless services to further enhance people's lives by providing innovative, relevant and value-driven services.
This and other information about SUNDAY can be accessed via http://www.sunday.com/, http://www.irasia.com/listco/hk/sunday and http://www.quamnet.com/.
CONTACT: Stella Wong, Corporate Communications Manager of SUNDAY Communications Ltd., +852-2113-8251, or mobile, +852-9230-5501, or stella.wong@corp.sunday.com
Web site: http://www.sunday.com/ http://www.irasia.com/listco/hk/sunday http://www.quamnet.com/
Business Editors
DEDHAM, Mass.--(BUSINESS WIRE)--Oct. 8, 2001
Fire Stations to hold Open Houses throughout October to Kick off
National Fire Prevention Week, Oct. 7-13
For the past eight years, Papa Gino's, Inc., the Dedham, Mass.-based pizza chain, and New England fire departments have teamed up to promote fire prevention and safety awareness. This year, nearly 115 Connecticut, Maine, Massachusetts, New Hampshire and Rhode Island fire departments will host Fire Prevention Open Houses to educate families on the importance of fire prevention.
"National Fire Prevention Week" is officially sponsored by the international non-profit National Fire Protection Association (NFPA) of Quincy, Mass. This year's theme, "Cover the Bases and Strike Out Fire" stresses the importance of fire prevention by using our nation's favorite pastime, baseball. The NFPA targets three common dangers of spontaneous fire outbreaks, kitchen, heating instruments and electrical hazards. The campaign includes a series of educational materials, as well as an Internet baseball game, geared toward teaching school children fire prevention practices.
At the open houses, families will be treated to a number of fire safety demonstrations and free Papa Gino's pizza. The goal of the event is to provide families with the opportunity to teach their children the importance of fire prevention and safety. Children will receive fire prevention activity sheets and will be asked to fill out a fire evacuation plan with their families. As part of this community relations program, Papa Gino's will provide more than 10,000 pizzas and 150,000 children's fire safety coloring sheets and fire hats to local fire stations during the month of October.
"We continue to support New England fire departments in their quest to educate families on fire prevention and safety," said Tom Galligan, Papa Gino's President and CEO. "These open houses have the potential to prevent fires, and we commend those fire stations who donate their time to educate the general public."
According to the NFPA, cooking, heating and electrical fires are among the nation's leading causes of home fires, accounting for an annual average of nearly 50 percent of home fires and almost one-third of associated fire deaths. Parents and kids are encouraged to complete home fire safety inspections together, putting the campaign's messages into practice. Home fire safety checklists, which can help families conduct a thorough inspection, are available at your local fire department and on the official Fire Prevention Week Web site at www.firepreventionweek.org.
According to the NFPA:
-- There are approximately 91,700 reported home fires each year associated with cooking equipment, killing 327 people and injuring 4,607 - the number-one cause of home fires and home fire injuries. -- On average, there are 59,100 reported home fires each year associated with heating equipment, killing 468 people and injuring 1,592 - the second leading cause of home fires. -- Electrical problems with wiring, switches, outlets, cords and plugs account for approximately 38,400 home fires annually, killing 352 people and injuring 1,343 annually.
Papa Gino's is the leading New England quick service Italian restaurant chain with 172 locations. Papa Gino's offers a casual family dining atmosphere and has provided New England residents with high-quality Italian food for more 40 years.
