Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — H1 2023 Earnings Presentation
24 slides from Hutchison Telecommunications Hong Kong's earnings presentation, 2023
Slide 1: 2023 Interim Results Presentation
2023 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 Executive Summary Financial Review Business Review & Development Sustainability Outlook 3
Slide 4: Executive Summary
Executive Summary
Slide 5: Executive Summary
Executive Summary Lifting of travel restrictions around the world and market stabilisation drove higher revenue from roaming services and corporate solutions as well as a 10% YoY increase in total margin. June 2023 witnessed a turnaround in profitability. YoY KEY achievements 5G HBB Base SUPREME ARP
Slide 6: Financial Review
Financial Review
Slide 7: Result Highlights: Improving Financial Performance
Result Highlights: Improving Financial Performance Revenue +1% YoY $2,328 million Service Revenue +15% YoY $1,793 million EBITDA +5% YoY $727 million EBITDA less capex Interim dividend +5% YoY $564 million 2.28 HK cents Flat YoY LBIT +19% YoY $35 million Loss attributable to shareholders +80% YoY $1
Slide 8: Revenue: Benefitting from Post-pandemic Tourism Recovery
Revenue: Benefitting from Post-pandemic Tourism Recovery Service Revenue ($m) Local Service Revenue ($m) Represents 87% of service revenue +15% YoY as Roaming & Local Service 67% Revenue Increased 77% +10% YoY as market competition 1,793 stabilised Revenue 1,558 1,558 1,418 $ 2,328 m 1H 2022 1H 2023
Slide 9: Customers: Expanding Customer Base
Customers: Expanding Customer Base Prepaid Postpaid 57% 43% of total customer base (1H 2022: 51%) of total customer base (1H 2022: 49%) 3,407k +13% YoY Jun-22 1,538k Jun-22 1,476k Jun-22 3,014k Dec-22 1,808k Dec-22 3,278k Dec-22 1,470k Jun-23 3,407k Jun-23 1,940k Jun-23 1,467k Increased by 26% YoY R
Slide 10: Customers: Encouraging 5G Development
Customers: Encouraging 5G Development ARPU (1) Postpaid Churn • Stabilised market competition • Post-pandemic reduction in work-from-home arrangements from corporate • Corporate solutions and roaming segments gained momentum customers, with a limited impact on the Group’s related income $180 • Overa
Slide 11: Operating Costs, Capital Expenditure, Net Cash
Operating Costs Capital Expenditure Net Cash (1) (incl. CACs, staff costs & other opex) (excl. telecommunications licences) $163m Healthy Cash Position $908m $1,109m $157m -22% -4% YoY YoY $3,759m 1H 2022 1H 2023 1H 2022 1H 2023 $3,718m $3,700m • Increased network operating costs to support network
Slide 12: Business Review & Development
Business Review & Development
Slide 13: 5G Adoption
5G Adoption Our 5G customer base almost doubled over the past year 5G Base 5G Penetration 5G Broadband Base 600k 500k +91% 45% 40% +18%-pts 38% 70k 60k +224% 35% 50k 400k 30% 300k 25% 20% 40k 20% 30k 200k 15% 20k 10% 100k 10k 5% 0k 0% 0k 1H 2022 1H 2023 1H 2022 1H 2023 1H 2022 1H 2023 • Expanded con
Slide 14: SUPREME
SUPREME New premium brand SUPREME in March 2023 ARPU (1) SUPREME enhances the Group’s competitiveness 400 in the upscale consumer market: 350 300 +139% • Providing cutting-edge 5G network services 250 200 150 • Wide range of lifestyle privileges 100 50 • Delivering dedicated personalised services to
Slide 15: Roaming
Roaming Solid recovery in roaming business via world-class coverage Roaming Revenue (3) ▪ Widest 5G network roaming $0M coverage leading the industry (1) $0M $0M $0M +77% ▪ 1st in Hong Kong Operator $0M $0M connecting to all three major $0M $0M $0M roaming operators in Mainland $0M $0M China (2), pr
Slide 16: SoSIM
SoSIM Continue to diversify SoSIM business Local Outbound Roaming For Inbound Travellers Base (1) 500,000 400,000 +49% 300,000 200,000 100,000 0 1H 2022 1H 2023 Local Revenue 70M 60M +75% • New launch product : • New joiner travel SIM • Continuous promotion to 50M 40M 30M 20M ➢ VPN, speed booster, e
Slide 17: Corporate Solutions
Corporate Solutions Accomplish endless possibilities by innovative 5G solutions Hong Kong 1st Container Terminals to Implement 5G • Remote-control Rubber-tyred Gantry Low Latency Cranes (rRTGCs) via 5G • HD real-time video streaming for Improve Safety Revenue monitoring the operation 350 Fast & Reli
Slide 18: Sustainability
Sustainability
Slide 19: Sustainability: Focusing On What Matters To Stakeholders
Sustainability: Focusing On What Matters To Stakeholders Promoting Sustainable Habits / Engagements Digital Upskilling and Data Privacy Mask collection programme to Microsoft 365 functions training minimise production of waste for employees Engaged employees with internal Cybersecurity Awareness Mon
Slide 20: Outlook
Outlook (1) Hutchison telecom HE Hong Kong Holdings
Slide 21: Outlook
Outlook Roaming Strong recovery to roaming revenue benefitting from the full resumption of normal travel across the world. Corporate Solutions IoT, 5G and AI will continue to be revenue drivers for data monetisation, synergy with CKHH business will deliver innovation. Capturing Inbound Travellers Le
Slide 22: Thank You
[1] Hutchison Telecom Hong Kong Holdings BE ALKEASE SR Thank You @r A member of CK Hutchison Holdings
Slide 23: Appendix
(1) Hutchison telecom Hong Kong Holdings
Slide 24: Financial Information Appendix
Financial Information Appendix HK$ million 1H 2023 1H 2022 Change HK$ million 1H 2023 1H 2022 Change Revenue 2,328 2,298 +1% EBITDA 727 695 +5% Net customer service revenue 1,793 1,558 +15% Service EBITDA 715 678 +5% Hardware and other product revenue 535 740 -28% Service EBITDA margin % 40% 44% -4%
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