Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — H1 2010 Earnings Presentation
27 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Aug 2, 2010
Slide 1: 2010 Interim Results
Hutchison Telecommunications Hong Kong Holdings Limited (Stock Code: 215) 2010 Interim Results 2 August 2010
Slide 2: Disclaimer
Disclaimer These materials have been prepared by Hutchison Telecommunications Hong Kong Holdings Limited (HTHKH) solely for use at this presentation and have not been independently verified. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, th
Slide 3: Business Performance
Business Performance Hutchison Telecom g Holding HEB Hong Kong Holdings
Slide 4: Highlights
Highlights 1 Consolidated turnover up 5% to HK$4,283m 2 Mobile Business: Turnover HK$2,831m Operating Profit HK$361m 3 Fixed-Line Business: Turnover HK$1,630m Operating Profit HK$226m 4 Profit attributable to equity holders up 41% to HK$361m 5 Interim dividend per share at 3.32 (2009:1.12) HK cents
Slide 5: Turnover
1 Turnover Consolidated turnover + 6% 5,000 4,097 4,283 4,000 3,783 3,000 HK$m 2,000 1,000 0 '08 1H '09 1H '10 1H Mobile business turnover Fixed – line business turnover + 5%1 + 8% 3,000 2,831 1,800 1,623 1,630 2,647 1,516 2,413 44 0 48 2,000 1,200 HK$m H K $m 1,594 1,630 1,000 1,468 600 FMIC & one-
Slide 6: Mobile - customers
2 Mobile - customers Total customers Postpaid customers Total: + 5% 3G: + 13% Total: + 8% 3G: + 21% 4,000 2,000 1,828 1,895 1,721 3,052 '000 3,000 2,775 '000 2,596 1,777 1,127 1,324 1,451 2,000 1,222 1,442 1,000 1,000 1,374 1,333 1,275 594 504 444 0 0 3G '08 1H '09 1H '10 1H Column 3 '08 1H '09 1H '
Slide 7: Mobile - KPIs
2 Mobile - KPIs Postpaid ARPU Steady growth in postpaid 220 ARPU and stable Churn 211 214 HK$ / month 202 200 180 '09 1H '09 2H '10 1H Postpaid Churn 2.0% 1.8% 1.7% 1.7% Percentage (%) 1.5% 1.0% '09 1H '09 2H '10 1H 6
Slide 8: Fixed-line
3 Fixed-line Carrier, Business and Residential Steady growth in Carrier, + 6% Business, and 1,500 1,376 1,502 1,533 Residential markets 1,000 HK$m 500 0 '08 1H '09 1H '10 1H Others 160 140 121 Effect on FMIC 48 29 97 HK$m 80 0 92 92 97 0 '08 1H '09 1H '10 1H FMIC Other IC and data centre rev 7
Slide 9: Profit attributable to equity holders and EPS
4 Profit attributable to equity holders and EPS Profit attributable to equity holders Strong growth of 41% 400 + 41% 361 300 256 HK$m 200 100 0 '09 1H '10 1H Earnings per Share 9 + 41% 7.50 6 5.32 HK cents 3 0 '09 1H '10 1H 8
Slide 10: Deliver value to equity holders
5 Deliver value to equity holders EBITDA - CAPEX Strong liquidity + 20% 600 588 489 400 HK$m 200 0 '09 1H '10 1H Interim Dividend Steady and sustainable 4 + 196% growth in dividend 3.32 HK cents 2 1.12 0 '09 1H '10 1H 9
Slide 11: Financial Overview
Financial Overview Ll] Hutchison Telecom BBM Hong Kong Holdings
Slide 12: Financial Highlights
Financial Highlights '10 1H '09 1H (HK$m) (HK$m) Turnover 4,283 4,097 Cost of inventories sold (298) (279) Staff costs (314) (310) Depreciation and amortisation (532) (650) Other operating expenses (2,595) (2,459) Operating profit 544 399 Interest income 2 - Interest and other finance costs (64) (73
Slide 13: Turnover – mobile business
Turnover – mobile business 2010 1H Turnover analysis by segments Data revenue + ~40% Others 12% 924 (HK$m) Voice 664 33% Roaming 22% '09 1H '10 1H Data Others 33% 13% Voice 41% Total: HK$2,831m Data 25% 12
Slide 14: Turnover - Fixed-line business
Turnover - Fixed-line business Steady growth in Carrier, Others1 6% Corporate & Business and Residential Residential markets during 20% Carrier Business 48% 1H 2010 Corporate & Business Markets 26% Total: HK$1,630m 1 Others include revenue from interconnection charges and data centers 13
Slide 15: Financial Highlights
Financial Highlights '10 1H '09 1H (HK$m) (HK$m) Turnover 4,283 4,097 Cost of inventories sold (298) (279) Staff costs (314) (310) Depreciation and amortisation (532) (650) Other operating expenses (2,595) (2,459) Operating profit 544 399 Interest income 2 - Interest and other finance costs (64) (73
Slide 16: Key cost items
Key cost items Cost of inventories sold 320 279 298 8% 6% 7.0% % to turnover 6.8% HK$m 160 4% 2% 0 0% '09 1H '10 1H Depreciation and amortisation expenses Staff costs 800 20% 400 10% 650 314 310 600 532 15% 300 % to turnover % to turnover 15.9% 7.6% 7.3% HK$m HK$m 400 12.4% 10% 200 5% 200 5% 100 0 0
Slide 17: Financial Highlights
Financial Highlights '10 1H 09 1H (HK$m) (HK$m) Turnover 4,283 4,097 Cost of inventories sold (298) (279) Staff costs (314) (310) Depreciation and amortisation (532) (650) Other operating expenses (2,595) (2,459) Operating profit 544 399 Interest income 2 - Interest and other finance costs (64) (73)
Slide 18: Other operating expenses
Other operating expenses Cost of services provided Operating lease rental expenses 2,000 1,808 1,928 50% 600 530 15% 494 44.1% 45.0% 40% 12% 12.4% % to turnover % to turnover 400 12.1% 30% 9% HK$m HK$m 1,000 20% 6% 200 10% 3% 0 0% 0 0% '09 1H '10 1H '09 1H '10 1H General and administrative costs Dou
Slide 19: Finance Costs / Share of results of JCEs
Finance Costs / Share of results of JCEs Finance costs Finance Costs 100 Decrease as a result of drop in 73 interest rate and improving 64 financial position HK$m 50 0 '09 1H '10 1H Share of results of JCEs Share of results of JCEs One-off provision on Italy MVNO 25 21 business 20 15 HK$m 10 8 5 0 '
Slide 20: Capex
Capex Mainly revenue driven Broadband focus ~1.2B target Capex and % of Turnover 600 560 15% 488 Capex / Revenue (%) 13.7% 10% 11.4% HK$m 300 5% 0 0% '09 1H '10 1H 19
Slide 21: Managing financial position
Managing financial position Net Debt Leverage ratio at 1.7 5,000 4,519 4,090 4,000 3,529 Undrawn facility of HK$ 3,000 HK$m 1.3B 2,000 1,000 0 '09 1H '09 2H '10 1H Net Debt / LTM EBITDA 3.0 2.5 x 2.0 x 2.0 1.7 x (x) 1.0 0.0 '09 1H '09 2H '10 1H 20
Slide 22: Outlook
Ll] Hutchison Telecom BBM Hong Kong Holdings Outlook 21
Slide 23: Outlook
Outlook Well positioned to capture full benefits of data explosion 22
Slide 24: Broadband focus - 3ree Broadband, iPad and iPhone
Broadband focus - 3ree Broadband, iPad and iPhone 23
Slide 25: Outlook
Outlook Reinforce market leadership Spectrum of advanced and innovative solutions 3ree Broadband – charting a new frontier in fixed-mobile convergence Striving for Excellence, Maximising value 24
Slide 26: Q&A
Ll] Hutchison Telecom BBM Hong Kong Holdings Q&A 25
Slide 27: Thank You
Ll] Hutchison Telecom BBM Hong Kong Holdings Thank You 26
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