Cramer fave and Hong Kong-based City Telecom HK in its most recent quarter delivered exactly the kind of subscriber growth he was looking for: 135,000 new broadband customers, taking the company’s total to 526,000, or 28 percent of the local market.
In a city that’s about as saturated with wireless coverage as a city can get, City Telecom HK offers none. This is a purely wire-line provider of phone, Internet, TV and corporate data services, but that doesn’t mean it’s falling behind. The quarter certainly showed that, as the company’s focus on broadband is fueling growth. CTEL plans on changing strategies a bit now, though, hoping to bring in more revenues by raising the price of its services.
City Telecom HK also offers something few other companies can: growth and a sizable dividend yield. Right now CTEL yields 3.9 percent. That combination, along with the company’s ability to deliver more bandwidth than the competition, is why Cramer got behind the stock back on March 18. It’s up 8 percent including dividends since then.
Of course, Cramer cares much more about City Telecom’s future than its past. And he wondered if the company’s new revenue strategy would deliver still more gains going forward. To find out, he invited Chief Financial Officer Ni Quiaque Lai back to “Mad Money.” Watch the video for the interview.
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