PCCW(00008)2020-09-03 09:19Financial Performance - The company recorded a stable performance for the six months ending June 30, 2020, despite the severe impact of the COVID-19 pandemic on global social and economic activities [4]. - Revenue for the first half of 2020 reached HKD 12 billion, reflecting a 5% increase compared to the same period last year [9]. - The company reported a significant increase in revenue for the first half of 2020, with a year-on-year growth of 15% [137]. - The company reported a consolidated loss attributable to equity holders of HKD 0.584 billion, compared to a loss of HKD 0.263 billion in the same period last year [139]. - The net profit for the first half of 2020 was HKD 254 million, a significant decrease of 76.9% from HKD 1,099 million in the same period of 2019 [42]. - The company has set a performance guidance of 8-12% revenue growth for the upcoming fiscal year [133]. - The company provided an optimistic outlook for the next quarter, projecting a revenue growth of 10% to 12% [137]. User Engagement and Viewership - Now TV's viewership increased by double digits during the first half of the year, driven by free access to selected content and a rise in home entertainment consumption [7]. - ViuTV's viewership more than doubled in prime time during the first six months, reflecting the popularity of self-produced content and increased advertising revenue [7]. - Viu achieved 36.1 million monthly active users across 16 markets, a 21% increase year-on-year, with a 23% growth in viewing sessions, totaling 3.2 billion views in the first half of 2020 [7]. - Now TV experienced an increase in viewership for entertainment and news content, while ViuTV launched popular series, leading to higher ratings during the pandemic [128]. - Viu service saw monthly active users increase by 21% to 36.1 million and paid subscribers rise by 119% to 4.3 million [147]. 5G Network and Technology Development - The company launched its 5G mobile network on April 1, 2020, and is expanding its coverage to provide a unique mobile communication experience in Hong Kong [4]. - Hong Kong Telecom became the first local mobile operator to launch a true 5G network on April 1, leveraging a large spectrum across various bands [8]. - The company is actively promoting the adoption of 5G among consumers and enterprises, aiming to develop new revenue sources in digital and smart living services [8]. - The company aims to drive consumer and enterprise adoption of 5G technology, exploring new revenue streams in digital and smart living services [132]. - The company is investing HKD 500 million in research and development for new technologies aimed at enhancing customer experience [133]. Strategic Partnerships and Acquisitions - The company established a strategic outsourcing partnership with StarHub in Singapore to enhance its IT services and support digital transformation [7]. - A strategic acquisition of a local telecom provider is in progress, expected to enhance service offerings and customer base by 30% [135]. - A strategic acquisition of a local tech firm is anticipated to be finalized by Q3 2020, which is expected to enhance the company's service offerings [133]. Market Expansion and Future Outlook - The company is focusing on market expansion, particularly in the Asia-Pacific region, aiming for a 15% increase in market share by the end of 2021 [9]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2025 [10]. - The company plans to continue evaluating and expanding data center capacity in Hong Kong and beyond to meet growing customer demand [151]. - The company is actively expanding regional business and launching new services and products as part of its effective business continuity plan [130]. Operational Challenges and Economic Impact - The pandemic has severely impacted the restaurant and hotel industry, with low occupancy rates reported at the hotel in Hokkaido since February [8]. - The ongoing pandemic and economic uncertainties are anticipated to continue affecting the company's performance in the near term [17]. - The company acknowledges that the pandemic will continue to pose severe challenges and uncertainties in the short term, impacting livelihoods and business prospects [128]. Corporate Governance and Shareholder Value - The board has approved a dividend payout of HKD 0.50 per share, reflecting a commitment to returning value to shareholders [135]. - The company declared an interim cash dividend of HKD 0.0918 per share for the six months ending June 30, 2020, unchanged from the previous year [41]. - The company plans to distribute special interim dividends, contingent on certain conditions, potentially increasing the number of shares distributed to shareholders [122]. Digital Ecosystem and Service Integration - The group is focused on enhancing its digital ecosystem, integrating services such as e-commerce, travel, insurance, fintech, and health tech [8]. - The group launched the telemedicine platform DrGo in July, connecting users with doctors for medical consultations via video [8]. - The company is committed to using its expertise in technology and communications to help Hong Kong citizens and businesses overcome current adversities [128].