Chapter 8 Financial Results
Financial Results 2016/17
- 2016/17 was a challenging year for the OFCA Trading Fund. The profit before tax fell to HK$72.0 million from HK$76.6 million in 2015-16. However, with a decrease in average net fixed assets (ANFA), the rate of return on ANFA increased to 22.3% from 16.3% a year before.
- The total revenue at HK$491.3 million was lower than the amount of HK$501.1 million last year due to decreased interest income from the placement with the Exchange Fund, partly offset by the recovery of previous years’ licence fees in connection with a lawsuit.
- On the expenditure side, the total expenditure dropped by 1.2% to HK$419.3 million in 2016/17 as a result of our continued efforts to contain operating costs amidst increase in staff costs.
- Looking ahead, we are optimistic that the communications sector in Hong Kong will remain vibrant and dynamic. With a robust 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:
|
2016/17 |
2015/16 |
|---|---|---|
Revenue |
491.3 |
501.1 |
Expenditure |
419.3 |
424.5 |
Pre-tax profit |
72.0 |
76.6 |
Proposed dividend |
59.8 |
63.8 |
Return on ANFA |
22.3% |
16.3% |
Revenue
Licence fees
87.1% (85.9%)
Service charges
5.9% (5.0%)
Interest income
6.3% (8.9%)
Miscellaneous revenue
0.7% (0.2%)
Expenditure
Staff
83.2% (78.4%)
Operation
12.9% (15.8%)
Depreciation & amortisation
3.4% (3.2%)
Consultancy
0.5% (1.4%)
Impairment loss on debtors
0.0% (1.2%)
* In parentheses are 2015/16 figures