Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — FY2023 Earnings Presentation
30 slides from Hutchison Telecommunications Hong Kong's earnings presentation, March 2024
Slide 1: 2023 Annual Results Presentation
2023 Annual 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 QR Code for the Executive Summary Group’s Financial Results Result Highlights Business Review & Development Financial Review Sustainability Outlook 3
Slide 4: Executive Summary
Executive Summary Kenny Koo Executive Director and CEO 4
Slide 5: Executive Summary
Executive Summary Net service revenue(1) +8% YoY, driven by strong roaming recovery and good growth in premium segments and prepaid business Key Achievements Outbound Roaming Revenue(1) 5G Base Penetration(2) SUPREME ARPU Prepaid SoSIM Revenue 46% +83% YoY 5G Home Broadband Base vs 30% in 2022 +257%
Slide 6: Result Highlights
Result Highlights Kenny Koo Executive Director and CEO 6
Slide 7: Result Highlights
Result Highlights Roaming service revenue continued to gain momentum, resilient local service revenue Service Revenue $3,531m Local Service $3,005m Roaming Service $526m +8% YoY Revenue +1% YoY Revenue +77% YoY Further deepened 5G uptake Encouraging recovery in Hong Kong business with promising outl
Slide 8: Business Review & Development
Business Review & Development Kenny Koo Executive Director and CEO 8
Slide 9: Network Development
Network Development Taking the lead to upgrade network coverage in multiple hotspots in Hong Kong seas Sea Land Air • Created an "eight transmitting antennas and eight receiving antennas" (8T8R) (1) Multiple-Input Multiple-Output Antenna X 2 (MIMO) antenna configuration, significantly increasing the
Slide 10: Network Development
Network Development Completion of network expansion across MTR lines Sea Land Air • Initiated network expansion project across MTR lines(1). • The project covers both stations and tunnel tubes with usage significantly increased after resumption of normalcy. • Increased network capacity and achieved
Slide 11: Roaming
Roaming Solid recovery in roaming business via world-class coverage Sea Land Air Roaming Revenue(1) 600,000,000 100% 75% of 90% 500,000,000 Pre-COVID 80% 70% 400,000,000 60% 300,000,000 50% +83% 40% 200,000,000 30% 20% 100,000,000 10% 0 0% 2019 2022 2023 • Hong Kong’s first operator to support “Cros
Slide 12: 5G Adoption
5G Adoption Strong growth driven by outstanding network performance & competitive packages Competitive packages 5G Base & 5G Penetration US$900,000 46% 50% 45% US$800,000 38% 40% US$700,000 US$600,000 30% 35% 30% US$500,000 20% 25% US$400,000 20% Flagship US$300,000 15% handsets US$200,000 10% US$10
Slide 13: Home Broadband
Home Broadband Establishing a clear growth pathway for 5G home broadband to enhance smart home capabilities and speeding up 5G adoption US$90,000 5G Broadband Base 100% US$80,000 90% US$70,000 US$60,000 +93% 80% 70% 60% US$50,000 50% US$40,000 40% US$30,000 30% US$20,000 20% US$10,000 10% US$0 0% 20
Slide 14: SUPREME
SUPREME Unveiled premium brand SUPREME in March 2023 600 ARPU(1) 100% 90% 500 80% 70% 400 60% 300 +257% 50% 40% 200 30% Joe Hisaishi in Concert Hacken Lee x HK Phil Concert S2O Songkran Music Festival 20% 100 10% 0 0% Non-SUPREME SUPREME • Part of the multi-brand strategy targeting esteemed customer
Slide 15: SoSIM
SoSIM Continuing to diversify SoSIM business Base(1) 700,000 600,000 Recharge Ratio(3) 500,000 400,000 +76% • New launch product 300,000 200,000 100,000 ➢ VPN, Speed Booster, Live Broadcast Booster, etc. 71% 79% 0 2022 2023 • Encourage recharge by reward programmes. 2022 2023 Revenue • Continuous pr
Slide 16: Corporate Solutions
Corporate Solutions Accomplishing endless possibilities by innovative 5G solutions • Launched 5G solutions hub DIGI3ox in December 2023. • Showcases over 40 innovative 5G application solutions involving integration of cutting-edge technologies such as artificial intelligence, blockchain, cloud compu
Slide 17: Corporate Solutions
Corporate Solutions Accomplishing endless possibilities by innovative 5G solutions Hong Kong 1st Container Terminals to Implement 5G Technology 5G Broadband Solutions • Remote-control Rubber-tyred Gantry • Enhance operational efficiency, Cranes (rRTGCs) via 5G technology. business competitiveness an
Slide 18: Financial Review
Financial Review Marcus Ng CFO 18
Slide 19: Revenue: Roaming Revenue Served as the Key Revenue Growth Driver
Revenue : Roaming Revenue Served as the Key Revenue Growth Driver Service Local Service Revenue ($m) +8% YoY Revenue ($m) +1% YoY due to rebound in roaming service revenue driven by stabilising market conditions 61% 3,531 72% Represents 85% of service revenue 3,278 2,981 3,005 2H 2H Revenue 2H 2H 1H
Slide 20: Customers: Expanding, Driven by Fast Growing Prepaid Base
Customers : Expanding, Driven by Fast Growing Prepaid Base Prepaid Postpaid 63% 37% of total customer base (2022: 55%) of total customer base (2022: 45%) +38% YoY 3,963k Flat YoY +21% YoY Dec-22 1,808k Dec-22 1,470k Dec-22 3,278k Jun-23 1,940k Jun-23 1,467k Jun-23 3,407k 2,500k Dec-23 3,963k Dec-23
Slide 21: Customers: Encouraging Trend in 5G Uptake
Customers: Encouraging Trend in 5G Uptake Net ARPU Postpaid Churn • Post-pandemic reduction in work-from-home arrangements from • Growth in roaming revenue corporate customers, which had only a minimal impact on the Group’s +4% profitability $174 • On the back of customer value management initiative
Slide 22: Vigilant about Spending and Healthy Cash Position
Vigilant about Spending and Healthy Cash Position Operating Expenses -11% YoY Capital Expenditure (excl. telecommunications licences) +3% YoY Healthy Cash(1) Position • Higher network operating costs for • Gradually dropped in capex after the peak of 5G network expansion and enhancement network infr
Slide 23: Sustainability
Sustainability Marcus Ng CFO 23
Slide 24: Sustainability: Focusing on What Matters to Stakeholders
Sustainability: Focusing on What Matters to Stakeholders Governance Sustainable Business Environment Social Model & Innovation New climate resilience Medium and long-term targets Training hours 92% solutions -70% Employees received trainings in Carbon intensity by 2025 and 22 anti-corruption/ethics
Slide 25: Outlook
Outlook Kenny Koo Executive Director and CEO 25
Slide 26: Outlook
Outlook Roaming Amplifying roaming uptake, deepening market penetration and enhancing user experience. Driving Growth in SUPREME Segment Focusing on elevating top-tier offerings with premium services to drive segment growth. Digital Strengthening online sales channels to effectively attract younger
Slide 27: Q&A
na Hutchison Telecom | | Hong Kong Holdings Q&A
Slide 28: Thank You
na Hutchison Telecom | | Hong Kong Holdings Thank You
Slide 29: Appendix
Appendix 29
Slide 30: Financial Information
Financial Information Appendix HK$ million 2023 2022 Change HK$ million 2023 2022 Change Revenue 4,896 4,882 - EBITDA 1,457 1,420 +3% Net customer service revenue 3,531 3,278 +8% Service EBITDA 1,432 1,387 +3% Hardware and other product revenue 1,365 1,604 -15% Service EBITDA margin % 41% 42% -1% pt
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