Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — H1 2024 Earnings Presentation
27 slides from Hutchison Telecommunications Hong Kong's earnings presentation, 2024
Slide 1: 2024 Interim Results Presentation
2024 Interim Results Presentation 1
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 Business Executive Financial Review & Sustainability Outlook Summary Review Development 33
Slide 4: Executive Summary
Executive Summary 4
Slide 5: Executive Summary
Executive Summary Strong roaming recovery and solid growth in premium segments and prepaid business Key Achievements 5G Base Penetration(1) SUPREME ARPU Outbound Roaming Revenue(3) Prepaid Revenue(3) 51% +48% YoY vs 38% in 1H 2023 5G Home Broadband Revenue +277% +35% YoY Prepaid Base(3) vs Non-SUPRE
Slide 6: Financial Review
Financial Review 6
Slide 7: Result Highlights: Further Improved Financial Performance
Result Highlights: Further Improved Financial Performance Revenue -12% YoY $2,058 million Service Revenue -2% YoY $1,760 million EBITDA(1) Flat YoY $728 million EBITDA less capex Interim dividend Flat YoY $562 million 2.28 HK cents Flat YoY LBIT(2) +14% YoY $30 million Loss attributable to sharehold
Slide 8: Revenue: Continued Growth In Roaming Service Revenue
Revenue: Continued Growth In Roaming Service Revenue Service Revenue ($m) Local Service Revenue ($m) Represents 83% of service revenue -2% YoY as increment in Roaming Service 71% -7% YoY due to changes in consumer Revenue offset by drop in Local Service Revenue 86% spending behaviour 1,793 1,760 Rev
Slide 9: Customers: Ongoing Rapid-growth in Prepaid Customer Base
Customers: Ongoing Rapid-growth in Prepaid Customer Base Prepaid Postpaid 66% 34% of total customer base (1H 2023 : 57%) of total customer base (1H 2023 : 43%) 4,271K +25% YoY Jun-23 1,940k Jun-23 1,467k Jun-23 3,407k Dec-23 2,500k Dec-23 3,963k Dec-23 1,463k Jun-24 4,271k Jun-24 2,827k Jun-24 1,444
Slide 10: Customers: Encouraging 5G Development
Customers: Encouraging 5G Development ARPU(1) Postpaid Churn • Market competition • Churn rate of postpaid customers in the mass market remained stable $180 $168 -7% YoY 0.9% 1.0% Slightly rose by (FY 2023: $174) 0.1%-pt YoY 1H 2023 1H 2024 (FY 2023 : 1.0%) 1H 2023 1H 2024 5G Customer Base 5G Broadb
Slide 11: Stabilised Cost and Healthy Cash Position
Stabilised Cost and Healthy Cash Position Operating Costs Capital Expenditure Net Cash(1) (incl. CACs, staff costs & other opex) (excl. telecommunications licences) $1,109m $166m Healthy Cash Position $1,062m $163m +4% -2% YoY YoY 30 Jun 2023 $3,718m 1H 2023 1H 2024 1H 2023 1H 2024 • Driven by effec
Slide 12: Business Review & Development
Business Review & Development 12
Slide 13: Network Development
Network Development Improving 5G service quality at major transportation hubs ✓ 5G @3.5GHz at three cross harbour tunnels ✓ 5G @3.5GHz at Hong Kong International airport ✓ 5G @3.5GHz in high-traffic MTR stations 13
Slide 14: Network Development
Network Development Introduce industry-leading AI-powered next generation energy saving solution ✓ Reduction of about 400,000kg of carbon dioxide emissions with smart energy saving solution, equivalent to the flight carbon emissions of about 1,000 journeys between Hong Kong and Barcelona KPI-customi
Slide 15: Network Development
Network Development Intelligent network resources prioritisation enables SUPREME customers to enjoy superb experiences • Intelligent resources allocation algorithm helps preserve network resources to ensure SUPREME customers’ quality of experiences upon heavy traffic conditions at mega events. 15
Slide 16: 5G Adoption
5G Adoption Over 50% of customers(1) using 5G 5G 5G Broadband 5G Base & 5G Penetration 5G Broadband Revenue 100% 5G Broadband Base 100,000 100% 900,000 800,000 51% 60% 70,000,000 90% 90,000 80% 90% 80% +95% +53% 60,000,000 80,000 38% 50% 70% 70% 700,000 60% 60% 600,000 40% 50,000,000 70,000 50% 50%
Slide 17: SUPREME
SUPREME Curating all-round privileges for premium customers 600 ARPU(1) 100% 90% 500 80% 70% 400 60% 300 +277% 50% 40% 200 30% 20% 100 10% 0 0% Non-SUPREME SUPREME Various types of Experience / Workshops / Memberships • Collaborate with New World Development to provide prestigious membership and pri
Slide 18: Roaming
Roaming Outbound roaming revenue largely recovered to pre-pandemic levels Roaming Revenue(1) 96% of 300,000,000 Pre-COVID 100% 90% 250,000,000 80% +35% 70% 200,000,000 60% 150,000,000 50% 40% 100,000,000 30% 20% 50,000,000 10% 0 0% 1H 2019 1H 2023 1H 2024 • “Cross-network Roaming”(2) service enables
Slide 19: SoSIM
SoSIM Continue to diversify SoSIM business Base(1) Revenue 700,000 120M 600,000 500,000 +28% 110M 100M +53% 90M 400,000 80M 300,000 70M 200,000 60M 50M 100,000 40M 0 30M 1H 2023 1H 2024 1H 2023 1H 2024 • New DIY Roaming Pass: enable users to customise region, duration & data usage. • New Supplementa
Slide 20: Corporate Solutions
Corporate Solutions Empowering endless possibilities with innovative 5G & FMC(1) solutions Supported HK Electric to deploy the Designated network partner of Cheung Kong Center II 1st 5G smart robot in cable tunnel • Provide comprehensive one-stop service. • Utilises high-speed and low-latency 5G tec
Slide 21: Sustainability
Sustainability 21
Slide 22: Sustainability: Focusing on What Matters To Stakeholders
Sustainability: Focusing on What Matters To Stakeholders Governance Maintained “AA” in msci ESG rating Sustainable “5G Intelligent Steward” robotic solution Business tailored for round-the-clock surveillance and inspection of confined cable tunnels Model & Innovation Environment Kick started supplie
Slide 23: Outlook
(1) Hutchison telecom HE Hong Kong Holdings 23
Slide 24: Outlook
Outlook Driving growth in roaming • Capitalising on the Greater Bay Area (GBA) initiative to cope with increasing roaming service demand across all segments. SoSIM • Continuing to steer growth in the SoSIM sector to further solidify market leader position. Corporate solutions • By digital transforma
Slide 25: Thank You
[1] Hutchison Telecom Hong Kong Holdings BE ALEASE PR Thank You @r ‘A member of CK Hutchison Holdings 25
Slide 26: Appendix
(1) Hutchison Telecom ME Hong Kong Holdings 26
Slide 27: Financial Information
Financial Information Appendix HK$ million 1H 2024 1H 2023 Change HK$ million 1H 2024 1H 2023 Change Revenue 2,058 2,328 -12% EBITDA 728 727 - Net customer service revenue 1,760 1,793 -2% Service EBITDA 726 715 +2% Hardware and other product revenue 298 535 -44% Service EBITDA margin % 41% 40% +1% p
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