Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — H1 2022 Earnings Presentation
27 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Jul 29, 2022
Slide 1: 2022 Interim Results Presentation
2022 Interim Results Presentation
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 Result Highlights Financial Review Business Review & Development Sustainability Outlook 3
Slide 4: Result Highlights
Result Highlights Telecom HBB Hong Kong Holdings
Slide 5: Highlights: Financial Results
Highlights: Financial Results Revenue -10% $2,298 million YoY Service revenue -4% $1,558 million YoY EBITDA -7% $695 million YoY Interim dividend EBITDA less capex 2.28 cents +27% Flat YoY $538 million YoY LBIT -147% $43 million YoY Loss attributable to shareholders -410% $96 million YoY Loss per sh
Slide 6: Financial Review
Financial Review BEBE Hong Kong Holdings
Slide 7: Revenue: Challenging Operational Environment
Revenue: Challenging Operational Environment Service Revenue ($m) Local Service Revenue ($m) Represents 91% of service revenue -4% YoY as challenging operational 62% -6% YoY as the market has remained uncertainties persisted during 1H 2022 68% competitive and delays of corporate solution projects du
Slide 8: Customers: Driving Growth in Postpaid Customer Base
Customers: Driving Growth in Postpaid Customer Base Prepaid Postpaid 51% 49% of total customer base (1H 2021: 56%) of total customer base (1H 2021: 44%) 3,014k Jun-21 1,810k Jun-21 1,423k Jun-21 3,233k Dec-21 1,760k Dec-21 1,442k Dec-21 3,202k Jun-22 1,538k Jun-22 3,014k Jun-22 1,476k Decreased by 1
Slide 9: Customers: Promising Postpaid Churn Improvement
Customers: Promising Postpaid Churn Improvement Local ARPU Postpaid Churn • Intense market competition • Focused strategy in improving customer loyalty • Slower than expected corporate solutions contributions • Continuous effort in customer retention $160 1.1% Improved by $149 -7% YoY 0.7% 0.4%-pt Y
Slide 10: Operating Costs, Capital Expenditure, Net Cash
Operating Costs Capital Expenditure (inc. CACs, staff costs & other opex) (excl. telecommunications licences) Net Cash $936m • Change in net cash mainly due to the $324m distribution of 2021 final dividend in May 2022 $908m -3% $157m -52% • Settlement of capex of 5G network YoY development and expan
Slide 11: Business Review & Development
Business Review & Development
Slide 12: Building the Best 5G Network in Hong Kong
Building the Best 5G Network in Hong Kong Analysis Data Collection Increased number of base Actively expediting the Harness Carrier Aggregation (CA) and stations at the 3.5GHz commercial readiness of Dynamic Spectrum Golden Spectrum 5G network on 700MHz Sharing (DSS) to maximise since 2020, allowing
Slide 13: 5G Home Broadband
5G Home Broadband New Sales Quantity New Sales Revenue +88% +77% 2H 2021 1H 2022 2H 2021 1H 2022 CPE Variety of CP Packages Lite Plan Bundle Wide Coverage Free CPE 700MHz CPE Rental All-in-One for 5G CPE Purchase No Speed Limit No Landlines Dual Locations No Installations 13
Slide 14: 3 DigiLive
3 DigiLive 3 DigiLive further extends the retail network of 3 Hong Kong’s digital life services, which helps customers in building their smart homes by integrating 5G broadband with diverse smart appliances Targets to extend to 18 by the year end of 2022 9 Shop-in-Shops launched in 1H 2022 14
Slide 15: 3 x MoneyBack
3 x MoneyBack Loyalty New Customer Benefits Mobile Market Commerce Place Earn Burn Link up My3App Bill settlement Referrals Buy Accessories Service Subscriptions Value-Added Services Contract Renewal Roaming Data Update Personal Info Buy Gadgets Net You Own Local Data 15
Slide 16: Metaverse Web 3.0: Promoting Digital Experience
Metaverse Web 3.0: Promoting Digital Experience Cryptocurrency 1st operator to accept cryptocurrency payments in HK Digital Art Enablement Opportunities NFT 16
Slide 17: Corporate Solutions: Key Tactics
Corporate Solutions Goals Monetise 5G Network Investments 3 Business = Innovation Branding Synergy & Implementation Build Showcases for Targeted Vertical Segment & Replication Smart Retails Smart Building Smart Campus Key Tactics Smart Port Smart Hotel Smart Utilities Properties / Facilities Retail
Slide 18: Sustainability
Sustainability
Slide 19: Sustainability: Focusing On What Matters To Stakeholders
Sustainability: Focusing On What Matters To Stakeholders Take Action on Climate Change Promote Sustainable Ecosystem 10% YoY Carbon Emission Intensity (1) Recycling programmes for handsets, accessories Green Office and Eco-Healthy Workplace Awards Labelling Scheme as well as phone cases to enc
Slide 20: Sustainability: Overcoming COVID-19 Together
Sustainability: Overcoming COVID-19 Together 2014
Slide 21: Outlook
(1) Hutchison telecom HE Hong Kong Holdings
Slide 22: Outlook
Outlook Enrich Network Quality Advanced network optimisation by applying AI-powered technologies as well as utilising new spectrum to deliver best services to our customers and uplift 5G penetration Embrace End-to-End Connectivity Simplify, enhance and expand network capabilities to accelerate innov
Slide 23: Thank You
[1] Hutchison Telecom Hong Kong Holdings BE ALKEASE SR Thank You @r A member of CK Hutchison Holdings
Slide 24: Appendix
(1) Hutchison telecom HE Hong Kong Holdings
Slide 25: Financial Information
Financial Information Appendix HK$ million 1H 2022 1H 2021 Change Revenue 2,298 2,565 -10% Net customer service revenue 1,558 1,630 -4% • Local service revenue 1,418 1,503 -6% • Roaming service revenue 140 127 +10% Hardware and other product revenue 740 935 -21% • Bundled sales revenue 194 166 +17%
Slide 26: Financial Information (cont'd)
Financial Information (cont’d) Appendix HK$ million 1H 2022 1H 2021 Change Total margin 1,390 1,437 -3% CACs (259) (234) -11% Less: Bundled sales revenue 194 166 +17% CACs (net of hardware and other product revenue) (65) (68) +4% Operating expenses (658) (651) -1% Opex as a % of net customer service
Slide 27: Financial Information (cont'd)
Financial Information (cont’d) Appendix HK$ million 1H 2022 1H 2021 Change EBITDA 695 747 -7% Depreciation and amortisation (738) (655) -13% (LBIT) / EBIT (43) 92 -147% Service (LBIT) / EBIT (60) 68 -188% Net interest and other finance costs (27) (15) -80% (Loss) / profit before taxation (70) 77
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