Our Macau business, operating as CTM, is the only full service operator in its market offering customers mobile, fixed line and broadband as well as enterprise services. It continues to lead the market in providing the highest quality service and driving the development of Macau.

Highlights

• Revenue increased by 19%, EBITDA up 8%
• Mobile revenue increased by 37%, driven by data revenue and handset sales
• One-third of mobile customers are now on data plans
• Launched 100 Mbps fibre broadband network
• Macau GDP grew by 26% in real terms

Performance

Our Macau business, branded as CTM, had an exemplary year in 2010/11 with strong economic growth in the territory powering increases in revenue and earnings.

Macau’s gross domestic product (GDP) rose by 26% in 2010, driven by growth in tourism and gaming. Visitor arrivals rose to 25 million people. Construction of more casinos further drove economic growth. Construction growth is set to continue in 2011, with the Government planning  infrastructure projects and more social housing.

Our business benefited from the strong economy with revenue growing 19% to US$377 million, and EBITDA rising 8% to US$153 million.

Our mobile business performed impressively. Revenue increased 37% to US$178 million. Despite competition from three other operators, we remain the market leader and increased mobile customers by 4% last year. Mobile data was an important factor with smartphones accounting for 86% of all handset sales in the fourth quarter. Over 80% of customers are now using 3G services.

We increased the download speed of our mobile broadband service to up to 21 Mbps last year, the fastest available in Macau.

There was also strong demand for fixed broadband, with revenue increasing by 18%. Last year we launched our fibre broadband network, one of the fastest residential networks anywhere in the world.

In the enterprise space, we fulfilled a US$30 million contract for the installation of infrastructure in the Galaxy Macau, one of the world’s largest casino resorts.

Outlook

The Macau economy is expected to continue expanding. Our business will benefit from that growth, but will also have to manage labour and skills shortages.

In the near future, competition is expected to be introduced within Macau’s broadband and fixed line markets. We are preparing our business for competition by focusing on service quality and extending our fibre broadband network to all Macau homes over the next two years.

We have the fastest mobile broadband service, but will increase download speeds again next year. Our mobile data customers will also continue to grow as penetration of smartphones and available mobile data services grows.

Our Macau business celebrates its 30th year of operation in 2011 and is well positioned to tackle the challenges ahead and to explore more opportunities for development.