Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — H1 2018 Earnings Presentation
23 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Jul 25, 2018
Slide 1: Keep Growing: 2018 Interim Results Presentation
Keep Growing 2018 Interim Results Presentation 25 July 2018
Slide 2: Disclaimer
Disclaimer Potential investors and shareholders (the “Potential Investors and Shareholders”) of Hutchison Telecommunications Hong Kong Holdings Limited (“the Company”) are reminded that information contained in this Presentation comprises extracts of operational data and financial information of the
Slide 3: Business Performance
LU] Hutchison Telecom oo Hong Kong Holdings
Slide 4: Remarkable achievements
Remarkable achievements • Mobile customer number increased 4% • Roaming revenue increased 6% • Profit attributable to shareholders from continuing operations was HK$198 million, increased 77% • Solid financial position with net cash of HK$9.5 billion as at 30 June 2018 • Evaluate various opportuniti
Slide 5: Steady mobile service revenue amid fierce competition
Steady mobile service revenue amid fierce competition Revenue ($’Billion) 1.94 1.91 1.84 1H 2017 2H 2017 1H 2018 4
Slide 6: Roaming revenue sustained growth
Roaming revenue sustained growth Revenue ($’Million) +6% YoY 348 349 329 1H 2017 2H 2017 1H 2018 5
Slide 7: Steadily growing customer base
Steadily growing customer base Customer no. YOY +4% (1H18 vs 1H17) Postpaid 1,486K 1,487K 0.8% 1,499K 0.1% Postpaid & Prepaid 1.8% 2.6% 3,414K 3,268K 3,328K 1H 2017 2H 2017 1H 2018 Prepaid 1,915K 1,782K 3.3% 1,841K 4.0% 1H 2017 2H 2017 1H 2018 6 1H 2017 2H 2017 1H 2018
Slide 8: Mobile KPIs
Mobile KPIs Blended postpaid gross ARPU(1) and net ARPU(1) Postpaid Churn 1H 2017 1H 2018 Gross ARPU Net ARPU 232 222 198 188 steady 1.2% 1.2% 1H 2017 1H 2018 1H 2017 1H 2018 Note 1 Postpaid Gross ARPU = monthly average spending per postpaid user including handset contribution for bundled plan. Post
Slide 9: Data usage
Data usage 4G Network data usage +78% 38% 29% 80% 1H 2016 1H 2017 2H 2017 1H 2018 8
Slide 10: Technology development
Technology development 5CC Carrier Aggregation (FDD + TDD) Digital Transformation Activated network-wide Transformation of business LTE1800+LTE2100+LTE2600+LTE2300+LTE2300 operation and system landscapes for higher levels of customer interaction and open up business monetised opportunities All Cloud
Slide 11: Diversified Digital Customer Touchpoints
Diversified Digital Customer Touchpoints 2017 2018 1H 1H 10
Slide 12: Continuous improvement on brand building
Continuous improvement on brand building
Slide 13: Roaming initiatives
Roaming initiatives Pool-sharing Data China-Macau-HK proposition Roaming Prepaid Promotion (China data as local tariff) 12
Slide 14: Pioneering in NB-IOT for new revenue streams
Pioneering in NB-IOT for new revenue streams Monetize NB-IoT network at 900MHz through ecosystem strategy with key strategic partners Industry-leading Suppliers Technology enablers Innovation Customers promoters Cloud & Big Creative Data providers developers Hardware builders 13
Slide 15: Financial Performance
LU] Hutchison Telecom oo Hong Kong Holdings
Slide 16: Financials highlights
Financials highlights Favourable/ 1H 2017 1H 2018 (unfavourable) HK$ million HK$ million Change Revenue 3,117 4,021 +29% Service revenue 1,944 1,843 -5% Hardware revenue 1,173 2,178 +86% EBITDA 644 601 -7% EBIT 215 195 -9% Profit attributable to shareholders from continuing operations 112 198 +77% E
Slide 17: Mobile business
Mobile business 1H 2017 1H 2018 Favourable/ (unfavourable) HK$ million HK$ million Change Revenue 3,117 4,021 +29% - Net customer service revenue 1,944 1,843 -5% - Local service revenue 1,615 1,494 -7% - Roaming - Hardware service revenue revenue 329 349 #DIV/0! +6% - Hardware revenue 1,173 2,178 +8
Slide 18: Enhanced operational efficiency
Enhanced operational efficiency • Continued focus on efficiency enhancement Costs and stringent spending control 2,000 1,348 -4% 1,300 129 73 HK$million 244 190 1,000 975 1,037 0 1H 2017 1H 2018 Expensed customer acquisition and retention costs Staff costs Other operating expenses 17
Slide 19: Disciplined capex spending and solid net cash position
Disciplined capex spending and solid net cash position Capex Net Cash 300 282 20% 10,000 % to service revenue 197 HK$ million HK$ million 15% 150 10% 5,000 9,817 9,491 10% 0 0% 0 1H 2017 1H 2018 Dec 2017 Jun 2018 capex over service revenue 18
Slide 20: Outlook
LU] Hutchison Telecom oo Hong Kong Holdings
Slide 21: Digital Transformation
Digital Transformation Accelerating Transformation of business activities, processes and competencies to fully leverage Digital Technologies to improve customer engagement and operational efficiency Flexible Digital Focus on the Experience Commerce Platform Cognitive & Analytics Operating Emerging M
Slide 22: Strategies to meet the Challenges
Strategies to meet the Challenges Profitability and • Value creation to combat price competition Value Creation • Innovative roaming products • Unique local service offerings • Develop new digital business revenue streams Customer First • Focus on total customer satisfaction Experience • Refresh onl
Slide 23: Thank You
Thank You
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