PCCW(00008)2023-09-07 08:48Revenue Growth - Viu's OTT business revenue increased by 24% year-on-year to HKD 971 million in the first half of 2023[10] - Viu's revenue recorded a significant year-on-year growth of 30%, driven by a dual business model of AVOD and SVOD[10] - The interim report for 2023 indicates that the company achieved a revenue of HKD 7.5 billion, representing a year-on-year increase of 5%[26] - Revenue for the first half of 2023 was reported at HKD 12.5 billion, representing a 10% increase compared to the same period last year[35] - Total revenue for the six months ending June 30, 2023, was HKD 16,850 million, up from HKD 16,738 million in 2022, representing a growth of 0.67%[100] - The company has projected a revenue growth of 6% for the next fiscal year, aiming for HKD 8 billion in total revenue[26] - The company aims to improve operational efficiency, targeting a 5% reduction in costs through digital transformation initiatives[35] User Engagement - Monthly active users of Viu grew by 8% year-on-year to 65.5 million, while paid users increased by 21% to 11 million[10] - ViuTV's registered members increased by 14% year-on-year to over 3 million, enhancing digital platform engagement[12] - The average revenue per user (ARPU) is expected to grow as customers upgrade to higher bandwidth services, with FTTH network coverage reaching 98%[13] - Customer satisfaction ratings have improved by 12%, reflecting enhanced service quality and support[35] Strategic Partnerships and Investments - The strategic partnership with CANAL+ involves a total investment of USD 300 million, aimed at expanding Viu's global market presence[11] - The company is preparing for the potential launch of the "Digital Hong Kong Dollar" as part of a cross-industry alliance[7] - The company is considering strategic acquisitions to bolster its service portfolio, with a budget of up to HKD 2 billion allocated for potential deals[26] - The company is investing HKD 1 billion in technology research and development to enhance service offerings and improve customer experience[26] Telecommunications and Infrastructure - The 5G customer base grew to nearly 1.2 million by June 2023, supporting the demand for mobile data roaming services[5] - The launch of 5000M FTTH service addresses the increasing bandwidth needs of users[5] - Hong Kong Telecom completed the construction of a fiber optic cable connecting to Lamma Island, supporting online work and education[6] - The company has expanded its fiber network to remote areas, including Lamma Island, preparing to offer up to 10G home broadband services[15] Financial Performance - The company reported a loss attributable to equity holders of HKD 486 million for the period[55] - The company reported a significant increase in user data, with a 15% year-over-year growth in active subscribers, reaching 3.5 million users[35] - The company reported a net profit margin of 12%, maintaining a stable performance amidst market fluctuations[26] - The company reported a net loss of HKD 88 million for the six months ended June 30, 2023, compared to a profit of HKD 931 million for the same period in 2022[107] Cost Management - Operating costs, excluding depreciation and amortization, increased by 5% to HKD 2,927 million[59] - The total cost of sales for the six months ended June 30, 2023, was HKD 5,739 million, compared to HKD 5,360 million in 2022, an increase of 7.09%[125] - The financing costs increased significantly to HKD 1,153 million for the six months ended June 30, 2023, compared to HKD 721 million in 2022, an increase of 60.06%[123] Dividends and Shareholder Returns - The board has approved a dividend payout of HKD 0.50 per share, reflecting a commitment to returning value to shareholders[26] - The interim dividend declared for the six months ending June 30, 2023, is HKD 0.0977 per share, an increase from HKD 0.0956 in 2022[98] - The company declared dividends amounting to HKD 2,139 million for the previous year, reflecting a significant cash outflow[107] Market Expansion - The company is expanding its market presence in Southeast Asia, targeting a 20% market share in the region by 2025[35] - Market expansion plans include entering two new regions, targeting a 10% increase in market share by the end of the next fiscal year[26] Employee Engagement and Management - The company has established performance bonus and incentive plans to encourage and reward employees based on overall group performance and individual assessments[97] - The company has adopted two stock incentive plans aimed at rewarding qualified participants for their contributions and attracting suitable talent[178] Financial Instruments and Valuation - The fair value of non-listed securities increased from HKD 124 million to HKD 147 million, while the fair value of non-listed financial assets rose from HKD 1,670 million to HKD 2,785 million for the same period[158][159] - The company’s financial instruments are measured at amortized cost, with no significant differences from their fair values as of the reporting dates[161]