Slide 1: Foundation for GROWTH & Yield
Foundation for GROWTH & Yield FY15 Interim Results Announcement for the six months ended 28 February 2015 29 April 2015
Slide 2: Disclaimer
Disclaimer These materials have been prepared by HKBN Ltd. (the “Company”) 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, the fairness, accuracy, completeness or
Slide 3: Agenda
Agenda Business Review 1 William Yeung CEO & Co-Owner Financial Results 2 NiQ Lai Head of Talent Engagement, CFO & Co-Owner 3
Slide 4: Business Review
Business Review William Yeung, CEO & Co-Owner 4
Slide 5: Another record “3 HIGHS & 1 LOW”
Another record “3 HIGHS & 1 LOW” 1 HIGH 1: Revenue up 10% YoY HIGH 2: EBITDA up 15% YoY; margin up to 42.8% from 2 40.9% a year ago HIGH 3: Residential Broadband Subscriptions up to 722k 3 (35.4%* market share) LOW 1: Residential Broadband Average Monthly Churn Rate 4 below 1% * Based on our broadba
Slide 6: Consistent growth in residential business
Consistent growth in residential business 9% YoY growth in Residential Revenue to HK$872 million Residential Broadband Residential ARPU (HK$) Subscriptions and Net Additions 9% YoY Growth 6% YoY Growth 722k 184 692k 181 662k 30k 30k 173 2k 1H FY14 2H FY14 1H FY15 1H FY14 2H FY14 1H FY15 Residential
Slide 7: Targeting low penetration private estates
Targeting low penetration private estates Read more at http://reg.hkbn.net/WwwCMS/upload/pdf/en/20141119_Marketing_Excellence_Award_E_FINAL.pdf 7
Slide 8: “Best Value-for-Money” service to HK people
“Best Value-for-Money” service to HK people 8
Slide 9: Seeding the subscriber base for enterprise business
Seeding the subscriber base for enterprise business 10% YoY growth in Enterprise Revenue to HK$229 million Enterprise Customers Enterprise ARPU (HK$) and Net Additions (per Enterprise Customer) 17% YoY Growth -3% YoY Change 35k 32k 30k 1,053 3k 1,036 1,025 2k 1k 1H FY14 2H FY14 1H FY15 1H FY14 2H FY
Slide 10: Delivering big business perks to small companies
Delivering big business perks to small companies Our city wide campaign to span numerous daily newspapers, online channels, and billboards inside the MTR subway (Mass Transit Railway) to communicate the exceptional value of this proposition Read more at http://reg.hkbn.net/WwwCMS/upload/web/en/Engag
Slide 11: Ocean Park Wi-Fi case study: Top-notch enterprise capability to WIN BIG!
Ocean Park Wi-Fi case study: Top-notch enterprise capability to WIN BIG! We support Ocean Park to be among the first in Asia to launch park-wide 1 Gbps Wi-Fi service Our Wi-Fi network enables innovative mobile app functions Park Navigation Service Virtual Guided Tour E-Scheduler Read more at http://
Slide 12: Open Letter calling for Disruptive Partners
Open Letter calling for Disruptive Partners Global Open Invitation to Partner with HKBN Fibre/Wi-Fi Local Loop • Focus on what we are KickAss good at doing, i.e. the “Big Fat Dumb Pipes” • Embrace world-class partners to fill our Big Fat Dumb Pipes for disruptive innovation • Open to different busin
Slide 13: Financial Results
Financial Results NiQ Lai Head of Talent Engagement, CFO & Co-Owner 13
Slide 14: Forming solid foundation for GROWTH & Yield
Forming solid foundation for GROWTH & Yield Adjusted Turnover EBITDA Free Cash Flow 10% YoY Growth 15% YoY Growth 4% YoY Growth despite the increase of 1,111 1,126 income tax paid during the period from HK$41mn 482 to HK$84mn and a swing 1,021 418 427 in working capital 178 185 42.8% 40.9% 133 38.4%
Slide 15: Key operating highlights
Key operating highlights 1H FY14 2H FY14 1H FY15 YoY % (A) (B) (B) – (A) Residential homes passed (’000) 2,057 2,088 2,119 3% Residential broadband - Subscriptions (’000) 662 692 722 9% - Market share 33.0% 34.2% 35.4% * +2.4pp - Churn rate # 1.0% 0.7% 0.6% -0.4pp Residential ARPU # HK$173 HK$181 HK
Slide 16: Reconciliation of EBITDA and Adjusted Free Cash Flow
Reconciliation of EBITDA and Adjusted Free Cash Flow (HK$ million) 1H FY14 1H FY15 YoY % Profit/ (loss) for the period 11 (47) n/a Key Highlights: Finance costs 96 199 106% Interest income (1) (2) 100% • EBITDA rose by 15% to HK$482 million on Income tax 22 41 86% margin improvement from 40.9% to 42
Slide 17: Unaudited consolidated income statement
Unaudited consolidated income statement (HK$ million) 1H FY14 1H FY15 YoY % Key Highlights: Residential revenue 799 872 9% Enterprise revenue 208 229 10% • Turnover growth driven by gains in market share for Product revenue 14 25 79% both residential and enterprise businesses. Turnover 1,021 1,126 1
Slide 18: Unaudited consolidated balance sheet
Unaudited consolidated balance sheet As at As at Key Highlights: (HK$ million) 31 August 28 February 2014 2015 • Solid balance sheet position with 5-year bullet Assets loan drawn on 19 January 2015 to refinance Goodwill 1,594 1,594 the early redemption of Senior Notes. Intangible assets 1,441 1,386
Slide 19: Thank You
Thank You Investor Engagement Contact: investor@hkbn.com.hk 19