Financial Results 2013/14

1. 2013/14 was a challenging year for the OFCA Trading Fund. The profit before tax fell to HK$95.1 million from HK$110.9 million in 2012/13. The rate of return on average net fixed assets decreased to 26.0% from 31.4% a year before. This was primarily the result of lower revenue as compared with that of last year.
2. The total revenue at HK$473.4 million was lower than last year’s HK$485.8 million. The decrease was mainly attributable to the full year effect of reduction in the licence fees for the Unified Carrier Licences and Public Radiocommunications Service Licences (Paging) and Services-based Operator Licences (Class 3) that come into effect on 1 March 2013, as well as lower interest on the placement with the Exchange Fund.
3. The total expenditure increased slightly to HK$378.3 million from last year’s HK$374.9 million as a result of our continued efforts to contain operating costs amidst increase in staff costs and administrative expenses.
4. Looking ahead, with the continued growth of the 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:

	2013/14 HK$'m	2012/13 HK$'m
Revenue	473.4	485.8
Expenditure	378.3	374.9
Pre-tax profit	95.1	110.9
Proposed dividend	79.4	92.9
Return on ANFA	26.0%	31.4%

Revenue

Licence fees	86.5% (84.8%)
Service charges	4.9% (5.5%)
Interest income	8.5% (9.5%)
Miscellaneous revenue	0.1% (0.2%)

Expenditure

Staff	76.5% (75.9%)
Operation	18.8% (20.6%)
Depreciation & amortisation	3.4% (3.0%)
Consultancy	1.3% (0.5%)

* In parentheses are 2012/13 figures