Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — H1 2021 Earnings Presentation
28 slides from Hutchison Telecommunications Hong Kong's earnings presentation, 2021
Slide 1: 2021 Interim Results Presentation
2021 Interim Results Presentation
Slide 2: Disclaimer
Disclaimer The information, statements and opinions contained in this Presentation and subsequent discussion do not constitute an offer to sell or solicitation of any offer to subscribe for or purchase any securities or other financial instruments or any advice or recommendation in respect of such s
Slide 3: Agenda
Agenda Result Highlights Business Review & Development Financial Review Sustainability@HTHKH Outlook QR Code for the Group’s Financial Results
Slide 4: Result Highlights
Result Highlights (2) Hutchison telecom HB Hong ong Holdings
Slide 5: Highlights: Financial Results
Highlights : Financial Results Interim Revenue EBITDA EBIT Dividend $2,565m $747m $92m 2.28 cents +29% YoY -37% YoY Flat YoY -4% YoY EBITDA EBIT (ex-roaming) (ex-roaming) Special + 6 % YoY + 217 % YoY Dividend 19.80 cents +100% YoY Profit EPS $31m 0.64 cents Total Interim -79% YoY -79% YoY Dividends
Slide 6: Service Performance: Steady Local Services Growth
Service Performance : Steady Local Services Growth Service Revenue • Local service revenue achieved 4% $1,630m steady growth, in which corporate -2% YoY solutions revenue grew by 58% Local Service Revenue Service EBITDA • Roaming revenue slashed by 43% $1,503m $723m +4% YoY due to impact of travel r
Slide 7: Business Review & Development
Business Review & Development
Slide 8: An Ambient Connectivity for Smooth 5G Experience
An Ambient Connectivity for Smooth 5G Experience One of the 1st operators to build over 1,000 3.5GHz golden spectrum band base stations 5G coverage reached 99%* Site locations expanded by over 30% 10GB optical fiber backhaul network * Based on the test results in relation to 3HK’s 5G network & popul
Slide 9: Data Usage: Strong Data Growth in HK
Data Usage : Strong Data Growth in HK +10% +15% +16% +13% 2H 2019 1H 2020 2H 2020 1H 2021 8
Slide 10: Our 5G Best Network in HK
Our 5G Best Network in HK One of the 1st Operator to build over 1,000 base stations for the 3.5GHz band golden spectrum * Based on the test results in relation to 3HK’s 5G network & population distribution of Hong Kong conducted in Jan-2021 9
Slide 11: Service Variety Relevancy to Daily Life
Service Variety Relevancy to Daily Life Handset Voucher Chelsea Watsons HK-UK 5G Mobile Handset Staycation Offer Water Offer Plan Broadband Voucher Offer Offer 10
Slide 12: Strong Distribution to Enhance Customer Reach
Strong Distribution to Enhance Customer Reach Shop-in-Shop at Fortress & 3Trolley at ParknShop SoSIM – ParknShop & Watsons Total over 420 distribution points Shop-in-Shop at 26 FORTRESS Stores 11
Slide 13: Transforming Smarter City through 5G Enterprise Solutions
Transforming Smarter City through 5G Enterprise Solutions 5G 5G 4K Live Corporate Solutions Revenue grew Surveillance Broadcast over 370% from 1H 2019 5G 5G Mobile Robotics Broadband Smart Cloud Storage Carpark & Big Data 1H 2019 1H 2020 1H 2021 12
Slide 14: Financial Review
(2) Hutchison telecom HBB Hong Kong Holdings
Slide 15: Revenue: Building Growth Momentum
Revenue : Building Growth Momentum Local Service Revenue ($m) Represents 92% of service revenue +4% YoY driven by 58% growth in Revenue revenue from Corporate Solutions 1,503 Service Revenue ($m) $2,565m 1,443 Hardware 59% +29% YoY 36% 1,664 -2% YoY 64% 1H 2020 1H 2021 1,982 2,565 1,630 1H 2020 1H 2
Slide 16: Customers: Solid Customer Base
Customers : Solid Customer Base Prepaid Postpaid 56% 44% of total customer base (1H 2020: 56%) of total customer base (1H 2020: 44%) Jun-20 1,851k 3,233k Jun-20 1,458k -2% YoY Jun-21 1,810k Jun-21 1,423k Jun-20 3,309k Dropped by 2% YoY Dropped by 2% YoY Jun-21 3,233k 15
Slide 17: Postpaid ARPU & Churn: ARPU Growth along with Stable Churn
Postpaid ARPU & Churn : ARPU Growth along with Stable Churn Local Gross ARPU Local Net ARPU $183 $160 $175 +5% YoY $150 +7% YoY 1H 2020 1H 2021 1H 2020 1H 2021 Gross ARPU = monthly average spending per postpaid user including handset contribution for bundled plan. Net ARPU = monthly average spending
Slide 18: Key Cost and Capex; Net Cash
Key Cost and Capex : Net Cash ($m) : Transitional Year Supported by Healthy Cash Position Improved Cost Structure Operating Costs (incl. CACs, staff costs & other opex) Capex 5,536 (excl. spectrum licences) 5,416 $936m +2% YoY (1H 2020: $922m) $324m +209% YoY 5,251 5,106 (1H 2020: $105m) EBITDA less
Slide 19: Sustainability@HTHKH
D4 Sustainability@HTHKH futchis HM son Telecom BEBE ong kong Holdin ss
Slide 20: Sustainability: Create Long-lasting Value for our Stakeholders
Sustainability: Create Long-lasting Value for our Stakeholders • Take action on climate change Environmental • Promote a circular economy • Protect natural resources • Create great places to work • Invest in developing thriving and resilient communities Social • Take all steps to protect employees a
Slide 21: Outlook
Hutchison Telecom ima HEE Hong Kong Holdings
Slide 22: Monetising 5G by Strongest Propositions
Monetising 5G by Strongest Propositions Enhance Quality by Digital Experience 5G Mobile Broadband & Enterprise Strongest Solution Distribution Network Best & Reliable 5G Network 21
Slide 23: Outlook
Outlook Continue to pursue the Group’s journey in building the best 5G network in Hong Kong along with the deployment & enhancement of mobile coverage, as well as expanding distribution network Expect the operation will generate a strong cash flow from post-pandemic recovery along with the retur
Slide 24: Thank You
(2) Hutchison Telecom Hong Kong Holdings BE AKEASH HR Thank You — KH] A member of CK Hutchison Holdings
Slide 25: Appendix
Appendix (2) Hutchison telecom HB Hong ong Holdings
Slide 26: Financial Information Appendix
Financial Information Appendix HK$ million 1H 2021 1H 2020 Change Revenue 2,565 1,982 +29% Net customer service revenue 1,630 1,664 -2% • Local service revenue 1,503 1,443 +4% • Roaming service revenue 127 221 -43% Hardware revenue 935 318 +194% • Bundled sales revenue 166 149 +11% • Standalone hand
Slide 27: Financial Information Appendix
Financial Information Appendix HK$ million 1H 2021 1H 2020 Change Total margin 1,437 1,465 -2% CACs (234) (234) - Less: Bundled sales revenue 166 149 +11% CACs (net of hardware revenue) (68) (85) +20% Operating expenses (651) (635) -3% Opex as a % of net customer service margin 46% 43% -3% pts Share
Slide 28: Financial Information Appendix
Financial Information Appendix HK$ million 1H 2021 1H 2020 Change EBITDA 747 778 -4% Depreciation and amortisation (655) (631) -4% EBIT 92 147 -37% Service EBIT 68 144 -53% Net interest and other finance (costs) / income (15) 43 -135% Profit before taxation 77 190 -59% Taxation (46) (44) -5% P
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