PCCW(00008)2024-02-23 08:44Revenue Performance - Revenue increased by 1% to HKD 36.347 billion[4] - Total revenue for Hong Kong Telecommunications increased by 1% year-over-year to HKD 34,330 million in 2023[10] - Revenue from telecommunications services rose by 1% to HKD 24,170 million, with local telecommunications services growing by 2% to HKD 16,873 million[12] - OTT business revenue surged by 22% to HKD 2.452 billion, driven by a 32% increase in subscription revenue[5] - Free TV and related business revenue grew by 5% to HKD 0.952 billion[4] - Revenue from other businesses reached HKD 767 million, with an EBITDA cost of HKD 697 million for the year ending December 31, 2023[27] - The external revenue from the Hong Kong segment decreased slightly to HKD 28,477 million in 2023 from HKD 28,613 million in 2022, a decline of approximately 0.48%[86] - The revenue from mainland China and other regions increased to HKD 1,590 million in 2023, up from HKD 1,237 million in 2022, reflecting a growth of about 28.54%[86] Profitability and Loss - The company reported a loss attributable to equity holders of HKD 0.471 billion from continuing operations[7] - The company reported a net loss attributable to equity holders of HKD 471 million, a 30% improvement compared to the previous year[10] - The company reported a net loss attributable to equity holders of the company from continuing operations of HKD (471) million in 2023 compared to a loss of HKD (676) million in 2022[60] - The company’s financing costs increased significantly to HKD (2,661) million in 2023 from HKD (1,826) million in 2022, an increase of 46%[60] - The total comprehensive income for the year was HKD 1,472 million, down 36.3% from HKD 2,310 million in 2022[61] EBITDA and Margins - EBITDA rose by 4% to HKD 12.831 billion, with a margin increase to 35%[7] - EBITDA for OTT business increased over threefold to HKD 0.592 billion[4] - EBITDA for Hong Kong Telecommunications reached HKD 13,400 million, reflecting a 3% increase compared to the previous year[12] - Overall EBITDA for the year ending December 31, 2023, rose by 4% to HKD 128.31 billion, with a margin of 35%[33] - The overall EBITDA margin improved to 39% in the second half of 2023, up from 37% in the same period last year[12] Dividends - Final dividend declared at HKD 0.2848 per share, totaling HKD 0.3825 for the year[7] - The company proposed a final dividend of HKD 0.4444 per share, bringing the total annual dividend to HKD 0.7649 per share[17] - The board proposed a final dividend of HKD 0.2848 per ordinary share for the year ended December 31, 2023, consistent with the previous year's dividend[51] Operational Highlights - The number of paid users for Viu increased by 10% to 13.4 million[5] - The customer base for 5G services reached nearly 1.4 million, accounting for 41% of postpaid customers by the end of December 2023[13] - Local data revenue recorded a significant growth of 10%, with total contract value from enterprise customers exceeding HKD 4 billion by year-end[15] - ViuTV's digital platform registered over 3 million members, reflecting a 9% year-on-year growth[24] Costs and Expenses - The total cost of sales increased by 1% to HKD 18,116 million, reflecting ongoing operational expenses[10] - Operating costs decreased by 6% to HKD 5.4 billion, primarily due to a 12% reduction in Hong Kong Telecommunications' operating costs[30] - The total operating cost to revenue ratio improved from 16% to 15%[30] Debt and Financing - Total debt as of December 31, 2023, was HKD 523.29 billion, up from HKD 498.99 billion in the previous year[41] - The group has unutilized bank credit facilities totaling HKD 20.488 billion as of December 31, 2023[69] - The group anticipates that it can meet its debt obligations due within the next 12 months based on operational cash inflows and additional debt financing capabilities[69] Employee and Corporate Governance - The group employed over 15,000 employees across 25 countries and cities as of December 31, 2023, with approximately 65% based in Hong Kong[50] - The group has established performance bonus and incentive plans to encourage and reward employees based on overall group performance, EBITDA, and free cash flow targets[50] Financial Position - Non-current assets increased to HKD 80,352 million in 2023 from HKD 78,018 million in 2022, reflecting a growth of 2.98%[62] - Current liabilities decreased to HKD 20,768 million in 2023 from HKD 24,374 million in 2022, a reduction of 14.5%[63] - Total equity attributable to the company's equity holders decreased to HKD 2,481 million in 2023 from HKD 5,554 million in 2022, a decline of 55.4%[65] - The company’s cash and cash equivalents decreased to HKD 2,627 million in 2023 from HKD 3,009 million in 2022, a decrease of 12.7%[63] Strategic Initiatives - The company aims to explore various opportunities for sustainable growth amid changing economic conditions[8] - The company aims to continue providing quality content and expand distribution to other platforms and markets[25] - The group continues to invest in enhancing digital capabilities to support existing business and drive growth in new areas, while cautiously investing in the expansion of the 5G network[43]