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Comba H1 2011 Profit Up 14% YoY

Hong Kong Exchanges and Clearing, 8/24/11

Chinese integrated wireless solutions and sub-systems provider Comba Telecom (2342.HK) has announced its unaudited financial results for the six months ended June 30, 2011. Revenue increased by 27.1% YoY to HKD 2.545 bln.

Profit attributable to ordinary equity holders of the parent increased by 13.7% YoY to HKD 317 mln.

Revenue generated from China Mobile (NYSE: CHL; 0941.HK) increased 39.4% YoY to HKD 1.45 bln and accounted for 57.0% of total revenue in H1 2011, compared to 52% in H1 2010.

Revenue generated from China Unicom (NYSE: CHU; 0762.HK; 600050.SH) increased 3.8% YoY to HKD 528.9 mln and accounted for 20.8% of total revenue in H1 2011, compared to 25.5% in H1 2010.

Revenue generated from China Telecom (NYSE: CHA; 0728.HK) fell 12.7% YoY to HKD 159.1 mln and accounted for 6.3% of total revenue in H1 2011, compared to 9.1% in H1 2010.

Revenue from 3G mobile network projects rose 91.7% YoY to HKD 666.42 mln and accounted for 26.2% of total revenue, resulting from stronger demand for 3G network deployment and optimization as a consequence of the increasing number of 3G subscribers and increasing data usage by subscribers.

Revenue generated from international customers and core equipment manufacturers increased by 47.2% YoY to HKD 349.65 mln, and accounted for 13.7% of revenue in H1 2011 compared to 11.9% in H1 2010. The increase in revenue was primarily due to the strong demand for total solutions for network deployment and upgrade in some emerging markets and further diversification of Comba's international customer portfolios.

Revenue generated from wireless enhancement business increased 26.9% YoY to HKD 879.43 mln and accounted for 34.6% of H1 2011 revenue. The increase in revenue was mainly contributed by the continuous 2G mobile network enhancement and also increasing 3G mobile network enhancement which substantially drove the sales of remote radio units.

Revenue generated from the antennas and subsystems business rose 17.7% YoY to HKD 816.49 mln and accounted for 32.1% of revenue in H1 2011 compared to 34.6% in H1 2010. The growth in revenue was mainly driven by strong demand for the replacement of base transceiver station antennas.

Revenue generated from wireless access business grew 124.3% YoY to HKD 206.78 mln and accounted for 8.1% of revenue in H1 2011 compared to 4.6% in H1 2010. The increase was mainly due to the strong growth of WLAN equipment sales attributable to the accelerated expenditure by PRC mobile operators for WLAN build-out to offload the heavy traffic of 2G and 3G mobile networks.

Revenue from services, including installation, network optimization, network upgrade, and after-sales maintenance services, increased by 22.7% YoY to HKD 642.42 mln and accounted for 25.2% of revenue in H1 2011 compared to 26.2% in H1 2010. Comba expects services will have greater sales contribution in H2 2011 as most of projects in the pipeline will be completed by the end of this year.

To view Comba's full earnings report, please click here.

Keywords: mobile network equipment profit revenue wireless 2342.HK Comba Telecom WLAN 3G H1 2011 wireless coverage wireless networking fiscal report antenna


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