Financial Results 2012/13

1. With the establishment of the Communications Authority (CA) and the Office of the Communications Authority (OFCA) in April 2012, 2012/13 was a year of transition for the OFCA Trading Fund.
2. The total revenue at HK$485.8 million surpassed last year's HK$411.6 million. The increase reflected the inclusion of revenues from broadcasting licensees. The total expenditure at HK$374.9 million was higher than last year's HK$274.2 million. The inclusion of expenditures for regulating broadcasting services is the main reason for the increase in total expenditure.
3. Other incomes (mainly interest income) increased to HK$46.5 million from HK$40.3 million in 2011/12. The average interest yield was 4.0%, higher than last year's 3.6%, primarily because of the full year impact of a placement with the Exchange Fund made in 2011.
4. The pre-tax profit decreased to HK$110.9 million from HK$137.4 million a year ago and the rate of return on average net fixed assets dropped to 31.4% from 48.8% in 2011/12.
5. With the continued growth of the information and communications sector, a strong statement of financial position and a dedicated and professional team in OFCA, we are well placed to face the challenges in the coming year.

Highlights of the financial performance:

	2012/13 HK$'m	2011/12 HK$'m
Revenue	485.8	411.6
Expenditure	374.9	274.2
Pre-tax profit	110.9	137.4
Proposed dividend	92.9	115.2
Return on ANFA	31.4%	48.8%

Revenue

Licence fees	84.8% (84.6%)
Service charges	5.5% (5.5%)
Interest income	9.5% (9.6%)
Miscellaneous revenue	0.2% (0.3%)

Expenditure

Staff	75.9% (80.6%)
Operation	20.6% (14.0%)
Depreciation & amortisation	3.0% (3.7%)
Consultancy	0.5% (1.7%)

* In parentheses are 2011/12 figures