Hkt Trust And Hkt Ltd · HKEX:6823
Hkt Trust And Hkt — FY2024 Earnings Presentation
35 slides from Hkt Trust And Hkt's earnings presentation, Feb 20, 2025
Slide 1: 2024 Annual Results
2024 Annual Results For the year ended 31 December 2024 20 February 2025 Hong Kong
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation may contain “forward-looking statements” that are not historical in nature. These forward-looking statements, which include, without limitation, statements regarding HKT’s future results of operations, financial condition or business prospects, are based o
Slide 3: Business Overview
Business Overview Susanna Hui Group Managing Director
Slide 4: Resilient Performance Despite Challenging Conditions
Resilient Performance Despite Challenging Conditions Total Revenue Total EBITDA Adjusted Funds Flow (US$ million) (US$ million) (US$ million) 4,456 1% YoY 1,762 766 Excluding Mobile Product Sales 3% YoY 3% YoY 4,107 2% YoY Enterprise Broadband Mobile Services Distribution (HK cents) Revenue Revenue
Slide 5: Unrivalled Network Connectivity Inside and Outside Home for Consumers
Unrivalled Network Connectivity Inside and Outside Home for Consumers End-to-End Solutions Supported by Carrier-Grade Network for Enterprises Total contract value of new project wins in FY 24 Over HK$5B (+ 11% YoY) HKT Consumer HKT No. of consumers Services Enterprise subscribing to 2 or more servic
Slide 6: Future-Proofing Fibre Network to Support the Applications of Tomorrow
Future-Proofing Fibre Network to Support the Applications of Tomorrow Addressing Growing Demand for Faster Connectivity and Lower Latency 2.5G / 5G / 10G / 50G PON Services + Wi-Fi 7 to ensure Quality of Experience • Ultra High-Speed Fibre-Based Technology enables new applications and activities 800
Slide 7: 800G AI Superhighway Service for AI and Supercomputing Era
800G AI Superhighway Service for AI and Supercomputing Era Layer-2 Connectivity Service for On-Demand Remote Access to AI Supercomputing Resources AI Supercomputing Centres 800G Data Centre Regions 800G HKT HKT Exchange A 800G 800G Exchange B Supercomputing Centres Universities Hi-Tech Companies Sci
Slide 8: Continually Improving Wireless Network Coverage and Performance
Continually Improving Wireless Network Coverage and Performance Further Mobile Network Expansion to Meet Growing Demands Enhance Indoor & Outdoor Coverage (+82 sites) • Added 82 sites for indoor and outdoor coverage enhancements • Expanding C-Band (3.5GHz / 4.9GHz) coverage for user experience impro
Slide 9: Continued Growth of High Value, Loyal Mobile Customer Base
Continued Growth of High Value, Loyal Mobile Customer Base Continued Growth in Post-paid Customer Post-paid Exit ARPU Uplift Continued Expansion of our Base Despite Intense Competition From Roaming Recovery and 5G 1O1O and csl Customer Base 5% 3,428 3,459 YoY 191 193 FY23 FY24 1% 1% YoY YoY Low Chur
Slide 10: Roaming Activity Fully Recovered with Further Room for Growth
Roaming Activity Fully Recovered with Further Room for Growth Delivering a Total Travel Solution for Seamless Experience Roaming Data Full Recovery in Roaming Revenue 98% of Pre-pandemic levels Inbound Revenue 70% of Pre-pandemic levels Day Pass Volume Pass Travel Plan Outbound Revenue 103% of Pre-p
Slide 11: Continued 5G Adoption and Value Uplift
Continued 5G Adoption and Value Uplift 5G customers reached 1.747 million ('000) 51% Number of 5G customers increased by 25% 41% 1,747 32% 1,399 21% Over Half of total post-paid 5G 1,061 customer base have upgraded to 5G Penetration to Total 8% Post-paid 680 Base 264 5G ARPU exceeds 4G ARPU by 40% D
Slide 12: Robust Demand for Home Broadband Services
Robust Demand for Home Broadband Services Stimulated by Our Market Leading Offerings Continued Upgrades to FTTH Further Consumer Broadband Net Adds With 2.5G Service Notching the Fastest Growth 1,471 1,474 1,040 ('000) 3K YoY 1,007 FY23 FY24 3% YoY ('000) Accelerating Uptake of 2.5G Service 218% YoY
Slide 13: Content Aggregator Delivering Unrivalled Sports and Entertainment Content
Content Aggregator Delivering Unrivalled Sports and Entertainment Content Strengthening Content Portfolio Enlarged Customer Base • Reinforcing our position as Home of Sports with the renewal and addition of new sports content • Total customer base expanded to ➢ Football : Premier League, FA Cup*, UE
Slide 14: Expanding Geographic Footprint and Advertising Solutions
Expanding Geographic Footprint and Advertising Solutions Comprehensive and Innovative Suite of Expanding Footprint Beyond Hong Kong Advertising Solutions Now TV’s Hotel Penetration in Hong Kong Omni-Channel TV Advertising Solutions ~100% ~80% MEDIA PLATFORM RETAIL 5-star hotels 4-star hotels Strateg
Slide 15: HKT Enterprise Offering Industry-Specific Solutions
HKT Enterprise Offering Industry-Specific Solutions Empowering the Public Sector and Enterprises in their Digital Transformation Total Contract Value of New Project Wins in FY24 Over HK$5 billion (+ 11% YoY) Industry Applications Government Healthcare Finance Insurance Retail Construction Modern Con
Slide 16: Smart Healthcare Solutions – From Infrastructure to Applications
Smart Healthcare Solutions – From Infrastructure to Applications Portfolio Expansion to Streamline Patient Care and Optimise Hospital Resources Won Projects with Total Contract Value of HK$1.5 billion since 2023 • 18 Public and Private Hospitals with 5G Infrastructure and Smart Healthcare Applicatio
Slide 17: Deploying Latest Technologies for Smart City Development
Deploying Latest Technologies for Smart City Development Digital Transformation and Value Creation across Diverse Industries Internet of Things (IoT) Artificial Intelligence (AI) Connected AV Centralised IoT Platform powered by multiple AI Contact Centre Bespoke Connected AV Solutions empower techno
Slide 18: Leveraging Global Capabilities to Assist Enterprises Expanding Into and Out of Mainland China
Leveraging Our Global Capabilities to Assist Enterprises Expanding Into and Out of Mainland China “Attracting Overseas Enterprises, Mainland Enterprises Our Mainland China Business Successfully Achieved Going Global” Strategy (引進來，走出去) its Target of HK$1 billion in revenue for FY24, Empowers Expansi
Slide 19: International Business – Powered by a Global, Hyperscale Network
International Business – Powered by a Global, Hyperscale Network Uniquely Combining Software Fabric & Global Network Infrastructure to Deliver World-Class Services A Fully Vertically Integrated Automated On-Demand Platform to Meet Evolving Demands 1,000+ 200+ 2,700+ Launched Edge SIM, a unique APIs
Slide 20: The Club Digital Ecosystem Connecting Consumers and Merchants
The Club Digital Ecosystem Connecting Consumers and Merchants GenAI and Data Analytics Empowering Personalised Service Offerings in Key Adjacencies Growing Share of Wallet Deeper Cross-selling and Upselling Broadening Benefits to Inbound and Outbound Increased Customer Engagement and Loyalty Travell
Slide 21: Deploying AI Automation for Customers and across HKT
Deploying AI Automation for Customers and across HKT Harnessing AI Automation to Enhance Business Operations and Customer Service AI Solutions Driving Enterprise AI Automation Enhancing Customer Service and Business Transformation Business Operations across HKT AI Intelligent Operations Centre AI Ag
Slide 22: Beyond Business: Enabling a Tech-Forward Community
Beyond Business: Enabling a Tech-Forward Community Advancing Hong Kong’s Building Future-Ready Potential Fostering Integrated Ecosystems Superconnector Role To transform experiences and operations To bridge local, mainland To drive economic, digital and international opportunities and technological
Slide 23: Contributing to a Sustainable Future
Contributing to a Sustainable Future Recognition Social Environmental • Shortlisted for the S&P Global Sustainability Advancing smart city development Combatting climate change Yearbook (China Edition) for • Enhanced AI capabilities of over 12,000 • Committed over US$3.7 billion in second consecutiv
Slide 24: FY24 Highlights
FY24 Highlights 4) Elevating the Consumer 1) Fortifying Financial Experience Strength Continually uplifting the experience inside and Successfully deleveraged balance outside of the home with the latest technologies and sheet enabling us to weather providing premium customer support and services unc
Slide 25: Financial Review
Financial Review Patrick Poon Chief Financial Officer
Slide 26: Solid Financial Performance
Solid Financial Performance (US$ million) FY 23 FY 24 % Change Adjusted Funds Flow 743 766 + 3% Revenue 4,401 4,456 + 1% Revenue (excluding Mobile Product Sales) 4,022 4,107 + 2% EBITDA 1,718 1,762 + 3% EBITDA Margin (excluding Mobile Product Sales) 43% 43% Overall EBITDA Margin 39% 40% Profit Attri
Slide 27: TSS Continued to Demonstrate Business Strength and Resilience
TSS Continued to Demonstrate Business Strength and Resilience TSS Business 3,099 3,136 Total Revenue • Local TSS revenue grew by 3% underpinned by robust growth in Enterprise related 1% YoY revenue and sustained expansion in Broadband revenue ▄ Local TSS • Pay TV resilient with Now OTT customers gro
Slide 28: Mobile Benefitting from Full Recovery of Roaming and Further 5G Upgrades
Mobile Benefitting from Full Recovery of Roaming and Further 5G Upgrades Mobile Business • Mobile business recorded continued growth of 5% in services revenue to 1,472 Total Revenue 1,450 US$1,123 million 2% YoY • Post-paid customer base further expanded to 3.459 million, a net gain of ▄ Revenue 31,
Slide 29: Continued Focus on Driving Operating Efficiencies
Continued Focus on Driving Operating Efficiencies Operating Expenses 446 423 • Opex savings of 5% in FY 24, with opex to revenue ratio further 56 56 improving to 9.5% 136 • Continued focus on operating efficiency and cost optimisation 130 ▄ TSS 5% initiatives across all business segments ▄ Mobile Yo
Slide 30: Disciplined Capital Investments Supporting Business Growth
Disciplined Capital Investments Supporting Business Growth Capital Expenditure 291 284 • Disciplined capital investments with capex to revenue ratio improving 19 24 to 6.4%, well within stated guidance • Lower Mobile capex reflecting the efficiency gains from capacity upgrades and network maintenanc
Slide 31: Adjusted Funds Flow
Adjusted Funds Flow YoY (US$ million) FY 23 FY 24 Better/(Worse) EBITDA 1,718 1,762 3% Less cash outflows in respect of capital expenditures, customer acquisition costs and licence fees: Capital expenditures (274) (261) Customer acquisition costs and licence fees (222) (218) Fulfilment costs (84) (8
Slide 32: Income Statement
Income Statement YoY (US$ million) FY 23 FY 24 Better/(Worse) Revenue 4,401 4,456 1% Revenue (excluding Mobile Product Sales) 4,022 4,107 2% Cost of sales (2,237) (2,271) (1)% OPEX (446) (423) 5% EBITDA 1,718 1,762 3% Depreciation & amortisation expenses (725) (706) Gain on disposal of PPE and ROU a
Slide 33: Solid Financial Position: Investment Grade Ratings Maintained
Solid Financial Position: Investment Grade Ratings Maintained Successful Deleveraging Leading to Improved Debt Ratios (US$ million) As of Dec 2023 As of Jun 2024 As of Dec 2024 Gross Debt (1) 5,744 5,942 5,349 BBB/ Baa2 Investment Grade Rating Gross Debt to EBITDA (2) 3.34x 3.42x 3.04x Net Debt (3)
Slide 34: Debt Maturity Profile
Debt Maturity Profile As of 31 December 2024 As of As of (US$ million) Dec 2023 Dec 2024 Cash Balance 219 275 • Current mix of fixed and floating rate debt approx. 65:35 Undrawn Facilities 1,632 2,386 Total 1,851 2,661 • Effective interest rate approx. 4.2% in FY 2024 • After the repayment of the US
Slide 35: FY24 Highlights
FY24 Highlights 4) Elevating the Consumer 1) Fortifying Financial Experience Strength Continually uplifting the experience inside and Successfully deleveraged balance outside of the home with the latest technologies and sheet enabling us to weather providing premium customer support and services unc