For Immediate Release

 

 

e-KONG Announces 2009 Final Results

Record Turnover of HK$798 million

Return to Net Profitability

Strong Financial Position

 

Financial Highlights

 

2009

HK$’000

2008

HK$’000

 

% change

 

Turnover

797,852

786,997

+1%

EBITDA

25,610

23,236

+10%

Net Profit / (Loss) for the year

18,967

(43,733)

n/a

Net Assets

200,322

180,421

+11%

Cash and Bank Balances

197,426

177,173

+11%

 

HONG KONG, 27 March 2010 -- e-KONG Group Limited (“the Company” or “e-KONG”), a company listed on the main board of the Hong Kong Stock Exchange (SEHK: 524), today announced its final results of the Company and its subsidiaries (“the Group”) for the year ended 31 December 2009.

 

In 2009, despite facing an unfavourable global economic environment and intense competition in the telecommunications market, particularly in the first half of the year under review, the Group delivered a record all-time high turnover, better EBITDA results and a return to profitability, demonstrating the success of the Group’s strategy to focus on balancing revenue growth with cash and capital preservation while maintaining operating margin.

 

The Group turnover increased by HK$10.9 million from HK$787.0 million for 2008 to HK$797.9 million in 2009. Results attributable to equity holders improved from a loss position of HK$43.5 million (inclusive of impairment losses of HK$30.8 million) in the previous corresponding year to a net profit of HK$19.0 million. EBITDA amounted to HK$25.6 million, compared to HK$23.2 million for the prior year. The Group’s financial position continued to strengthen with year-end net asset value improving from HK$180.4 million in the previous year to HK$200.3 million. Cash and bank balances increased from HK$177.2 million to HK$197.4 million, while all bank borrowings were fully repaid in the first half of the year.

 

In anticipation of the projected growth in ZONE’s business and as it strives to find ways to lower costs and deliver new and improved services, in the coming year, ZONE is expected to invest to broaden its network coverage, increase its capacity and enhance the functionalities of its service platforms. For example, ZONE US will augment its softswitch facilities to account for projected traffic growth in its network. It will also implement Local Number Portability (LNP) dipping throughout its network which will improve operational transparency and provide greater flexibility while further enhancing operating margins. In Asia, ZONE has recently put in service its dedicated IP backbone between Hong Kong and China which facilitates its ability to offer additional value-added services and also improve network security and reliability for its cross-border customers. ZONE plans to extend its IP backbone to its Singapore facilities which will provide redundancy and flexibility to its networks in both Hong Kong and Singapore, positioning itself as a regional player strongly and competitively for future growth in Asia.

 

As the Group executes on its strategy of steadily building its ZONE business organically, it is also actively evaluating merger and acquisition (M&A) opportunities both in the US and in Asia. While during the current industry and economic uncertainties there are many prospective targets for M&A in the telecom sector, particularly in the US, the Group is critically selective to ensure that any transactions concluded will create mutual benefits through generating significant operational and business synergies, as well as unlocking shareholders value. In 2010, the Group foresees it is able to finalise some of the transactional opportunities which it believes will be most beneficial not only to its shareholders but also to its customers, business partners and employees.

 

“Financially, the Group is in a strong position, having a solid balance sheet, generating steady cashflow and with no outstanding long term debt. Looking ahead, the Group will continue to take proactive steps to build on its financial strength and to seek opportunities to deploy its resources to maximise value for its shareholders, including investments to grow its current ZONE business and to pursue investment opportunities beyond its current telecommunication business.” Mr. Richard Siemens, Chairman of e-KONG concluded.

 

-- END --

 

Note: The full text of the Group’s 2009 Final Results announcement can be accessed through the e-KONG’s corporate website at www.e-kong.com/investors/announcements.htm

 

 

 

 About e-KONG Group Limited

e-KONG Group’s principal operating subsidiaries are in the business of providing telecommunication services. The Company is listed on the main board of the Hong Kong Stock Exchange (SEHK: 524) and maintains a sponsored Level 1 ADR programme through The Bank of New York Mellon (Ticker Symbol: EKONY).

 

The Group’s key operating business ZONE, currently having operations in the United States, China, Hong Kong and Singapore, provides a diverse range of voice and data products and services and IT solutions, utilising the latest technology platform and state-of-the-art network facilities that offer customers a variety of features and value-added services tailor-made to suit their needs while empowering them with tools and functionalities to manage their requirements. 

For further information on e-KONG, please visit: www.e-kong.com

 

ZONE website addresses :

 

ZONE United States     www.zonetelecom.com

ZONE Hong Kong        www.zonetel.com

ZONE Singapore           www.zone1511.com.sg

 

For more details, please contact:

 

Investor Relations Team

Tel:  852 2296 9770

Fax: 852 2801 7238

e-mail: investor@e-kong.net