Hkbn Ltd. · HKEX:1310
Hkbn — H1 FY2025 Earnings Presentation
36 slides from Hkbn's earnings presentation, Apr 25, 2025
Slide 1: FY25 Interim Results Announcement: Sustainable Growth
FY25 Interim Results Announcement SUSTAINABLE GROWTH --- Supercharged by GigaFast Solutions William Yeung Executive Vice-chairman & Group CEO Dr. Denis Yip President & Group COO Derek Yue CFO © HKBN Ltd. 2025. All Rights Reserved. 25 April 2025
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: Overview
Overview William Yeung Executive Vice-chairman & Group CEO
Slide 4: Sustainable Growth
Sustainable Growth Revenue EBITDA Net Profit AFF $5.7B $1.2B $108M $126M w/o handsets YoY +4%* YoY +5% 1H 2024: $1.5M YoY +2% DPS: 15.5 HK Cents * Revenue with handsets decreased by 1% YoY Financials in HK$mn, unless otherwise stated 4
Slide 5: Business Highlights
Business Highlights Dr. Denis Yip President & Group COO
Slide 6: Solid Growth in Enterprise Business
Solid Growth in Enterprise Business 6 Enterprise Solution Enterprise Enterprise SI ICT Revenue Revenue* Core Telecom Revenue $1,959M $1,234M $649M YoY +4% YoY +2% YoY +10% * Excluding international telecommunications services revenue
Slide 7: Backlog Growth and Solutions Bundling Fueled by Telecom Business
Backlog Growth and Solutions Bundling Fueled by Telecom Business 1H 2024 1H 2025 SI/ICT & Telecom SI/ICT & Telecom 1H 2024 Box-Moving 1H 2025 Box-Moving Backlog Growth 1H 2024: 47% 1H 2025: 50% +15% 1H 2024: 1H 2025: 57% of customers of total Backlog bundled 43% 61% of customers bundled 39% of total
Slide 8: Profitable Growth in Residential Business
Profitable Growth in Residential Business Residential Core Residential Residential Total RS Backlog Telecom Revenue* ARPU 5.33/ ARPH $1,007M $186 $212 $3,465M YoY +1% YoY +3% YoY +5% YoY +8% * Excluding international telecommunications services, MVNO and Products 8
Slide 9: Enterprise Solutions
Enterprise Solutions
Slide 10: 2Gbps and Beyond: GigaFast Campaign in Enterprise Market
2Gbps and Beyond: GigaFast Campaign in Enterprise Market 6.1% 5.3% 4.4% 3.5% 2.5% 1.6% 0.8% Penetration Rate (Start 202408 202409 202410 202411 202412 202501 202502 billed) 1H 2024 1H 2025 10
Slide 11: Extended Connectivity Solutions: Well-Received with Growing Revenue and Pipeline
Extended Connectivity Solutions: Well-Received with Growing Revenue and Pipeline Extended Connectivity Solutions: 1H 2025 Complex FTNS + ICT Integrated Solutions for Enterprise Customers • Secure Access Service Edge (SASE): 40+ wins Merges networking and security for secure access anywhere • Softwar
Slide 12: HKBN InnoTech Ecosystem Alliance: Unlocking New Partnerships
HKBN InnoTech Ecosystem Alliance: Unlocking New Partnerships and Business Opportunities Unite leading technology solution providers to help enterprise customers overcome technology challenges and accelerate business growth Leverage International Data AMF HKBN’s Strengths Professional Sales Team Comp
Slide 13: Powerful Synergies Among Alliance Partners
Powerful Synergies Among Alliance Partners: Strategic Integration of Innovative Technologies Leading Cloud Computing Premier Mainland Disaster All-in-one Enterprise Operations Ranked 4th in Mainland Provider with Data Centres Recovery Software and Management Platform Cloud Computing Market Powered b
Slide 14: Dedicated Solutions Platform for Enterprise Customers: To Go Global
Dedicated Solutions Platform for Enterprise Customers: To Go Global (出海) and Attract Foreign Investments Harness Hong Kong’s Distinct Advantages 2024 Investment Snapshot from InvestHK^ International Financial Centre Open & Free Market 539 Firms to set up operations in Hong Kong International Innovat
Slide 15: Comprehensive Solutions to Help Enterprises Go Global
Comprehensive Solutions to Help Enterprises Go Global (出海) Connectivity Cloud, Infrastructure & Unified Communications & Facilities Management Meeting Collaboration Overseas Branches Mainland (Include Macau) Headquarters Dubai, Europe, Japan, CUG, CM & CTG Korea, Southeast Asia (中國聯通、中移動、中國電信) Conne
Slide 16: Critical Infrastructures Bill: Growing Demand for Network Security Solutions
Critical Infrastructures Bill: Growing Demand for Comprehensive Network Security Solutions Protection of Critical Infrastructures CyberZafe (Computer Systems) Bill Prevention & Training Detection & Response Passed by LegCo in March 2025 • Security Advisory • Network Security Health • Establish Cyber
Slide 17: Residential Solutions
Residential Solutions
Slide 18: Significant Market Potential in Broadband Speed Upgrades
Significant Market Potential in Broadband Speed Upgrades HK’s First 25Gbps Available Now World’s First Dual Guarantee World’s First 1Gbps Broadband Service >1Gbps penetration 71.4% 2024 2023 2005 18 * Source: Table 1: Statistics on Access Lines of Internet Service Subscriptions in Hong Kong (Notes 1
Slide 19: 2Gbps and Beyond: GigaFast Campaign in Residential Market
2Gbps and Beyond: GigaFast Campaign in Residential Market 9% 7% 6% 5% Penetration Rate 202308 202402 202408 202502 19
Slide 20: Boosting Profitability: Strategy to Enhance ARPU
Boosting Profitability: Strategy to Enhance ARPU $220 ARPH* $210 $212 $207 $200 $203 $190 Base ARPU $186 $180 $182 $181 $178 $179 $170 $160 1HFY23 FY23 1HFY24 FY24 1HFY25 * Average revenue per household 20
Slide 21: Boosting ARPH with Stronger Infinite-Play Solutions
Boosting ARPH* with Stronger Infinite-Play Solutions Voice Communications Aging-in-Place Solution Healthcare Services High Speed Fibre Broadband High Speed Mobile FibreServices Broadband Global SIM OTT & Music Entertainment Travel & Home Insurance Cybersecurity Wi-Fi Solution e-Commerce Shopping * A
Slide 22: Steady Growth in OTT Paid Standalone Subscriptions
Steady Growth in OTT Paid Standalone Subscriptions* No.1 Telco Partner $ ARPU YoY%: +12% 80 75 +6% 70 +6% 65 Other OTT Services 60 55 Newly launched in FY25 50 FY24 1H FY24 2H FY25 1H * Based on AMF Paid Standalone Subscriptions, excluding myTV Super Alpha Pack 22
Slide 23: Safeguarding Elderly with Smart Solutions
Safeguarding Elderly with Smart Solutions Aging-in-Place Solution Empowering Seniors with Technology Continuous aging trend in the population In 2024, approx. 1.7M By 2043, approx. 2.7M seniors (65+) in Hong Kong, seniors in Hong Kong, 35% over 20% of the population of the population Safety Living C
Slide 24: AI Safety Net for Senior Care
AI Safety Net for Senior Care AI-Powered Fall Detection System Use of mmWave RADAR technology and AI algorithms to improve resident safety by promptly detecting falls and alerting care teams within seconds, enabling quicker responses to prevent serious incidents. Instant fall detection & alerts AI-d
Slide 25: Growing Momentum: Increasing Subscriptions for Infinite-Play Solutions
Growing Momentum: Increasing Subscriptions for Our Infinite-Play Solutions The upward trend indicates a growing adoption of our solutions among customers, proving the success of our Infinite-Play strategy. Customers value our comprehensive solutions – 8% broadband, mobile, OTT, Wi-Fi solutions, home
Slide 26: Enterprise and Residential Business Highlights at a Glance
Enterprise and Residential Business Highlights at a Glance High-Speed Broadband Surge: GigaFast 25Gbps First-mover Enterprise Business Residential Business 85% ~34% = 40 out of fibre coverage market share1 100 households Revenue Generating Backlog Growth Strong Demand for Strong Market Position Infi
Slide 27: Financials
Financials Derek Yue Chief Financial Officer
Slide 28: Delivered Strong Financial Performance in 1H FY25
Delivered Strong Financial Performance in 1H FY25 HK$m 1H FY24 1H FY25 YoY 1H FY25 Revenue 5,809 5,734 -1% • Core business performance - Enterprise Solutions 2,310 2,550 +10% sustained in Enterprise Telecom, SI/ICT and Residential direct - Residential Solutions Note 1,182 1,166 -1% business - Produc
Slide 29: Accelerated Ops Efficiency, Cash Creation and Deleveraging
Accelerated Ops Efficiency, Cash Creation and Deleveraging Financials in HK$M, unless otherwise stated 1,000 Operating Expenses Note 1 Cash & Equivalents 900 YoY -6% YoY +34% 800 1,000 900 Net Leverage Ratio 700 800 600 700 500 400 861 810 600 500 1,078 4.79x 300 400 804 200 300 (FY24: 4.93x 1H FY24
Slide 30: Solid Financial Performance
Solid Financial Performance Cashflow Deleveraging EBITDA Cash Conversion 84% of EBITDA Refinancing YoY +5% Cash equiv YoY +34% >2X subscription 30
Slide 31: Business Outlook
Business Outlook William Yeung Executive Vice-chairman & Group CEO
Slide 32: Reaffirming Sustainability Commitment
Reaffirming Sustainability Commitment HKBN’s inaugural HK$6.75 billion* syndicated Sustainability-Linked Loan Deleveraging Interest rate adjustment mechanism* tied to sustainability performance targets AA+ * HK$5.25B refinanced with HK$1.5B raised through greenshoe option * Interest rate adjustment
Slide 33: Sustainable Growth Delivered!
SUSTAINABLE GROWTH Delivered! 33
Slide 34: FY25 Interim Results Announcement: Sustainable Growth
FY25 Interim Results Announcement SUSTAINABLE GROWTH --- Supercharged by GigaFast Solutions William Yeung Executive Vice-chairman & Group CEO Dr. Denis Yip President & Group COO Derek Yue CFO © HKBN Ltd. 2025. All Rights Reserved. 25 April 2025
Slide 35: Q&A
Q&A 35
Slide 36: Thank you
Thank you