Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — FY2018 Earnings Presentation
33 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Feb 28, 2019
Slide 1: 2018 Annual Results Presentation
2018 Annual Results Presentation 28 February 2019 Digitalisation Transformation
Slide 2: Disclaimer
Disclaimer The information, statements and opinions contained in this Presentation and any 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 su
Slide 3: 2018 Milestones
Completed successful 2018 Milestones 5G outdoor network trials and first to make a live outdoor broadcast via 5G Activated 5CC Launched 3Money Carrier aggregation “New Phone and network technology Cash Plan” Jan Mar May Jul Sep Nov Dec Became one of the first Asian operators to activate an NB-IoT La
Slide 4: 2018 Financial Highlights
2018 Financial Highlights Revenue Key Cost Items HK$7,912m HK$2,627m +17% -3% Recurring Profit Strong Net Cash HK$404m HK$9,555m +82% 3
Slide 5: 2018 Dividends
2018 Dividends Special HK$80.00 cents Full Year HK$86.30 cents Final HK$3.20 cents Interim HK$3.10 cents 4
Slide 6: Financial Review
Financial Review EB Hutchison Telecom Hong Kong Holdings BE Acinres2H
Slide 7: Revenue (HK$'m)
Revenue (HK$’m) • Increased demand for new 7,912 smartphones 6,752 +17% • Tariff-focused competition 4,250 2,899 • Local service revenue under pressure 3,853 3,662 • Roaming service revenue 2017 2018 improved with 24% increase in Hardware revenue roaming data revenue Net customer service revenue 6
Slide 8: Customers
Customers Postpaid 1,487K 1,499K Total 0.8% 3,328K 3,276K 1.6% 2017 2018 Prepaid 1,841K 1,777K 3.5% 2017 2018 2017 2018 7
Slide 9: Churn and ARPU
Churn and ARPU Postpaid Churn Blended postpaid gross ARPU(1) and net ARPU(1) 2017 2018 Gross ARPU Net ARPU 230 219 197 186 1.3% 1.3% steady 2017 2018 2017 2018 Note 1 Postpaid Gross ARPU = monthly average spending per postpaid user including handset contribution for bundled plan. Postpaid Net ARPU =
Slide 10: 4G Network data usage
4G Network data usage • Growing trend of demands • Innovative data packages 21% offerings 38% 29% 1H 2017 2H 2017 1H 2018 2H 2018 9
Slide 11: Roaming service revenue (HK$'m)
Roaming service revenue (HK$’m) • Introduction of innovative roaming products 677 +1% 682 • Leverage the collaborations with CKHH Group and global mobile alliance 2017 2018 10
Slide 12: Key Costs (HK$'m) and Capex (HK$'m)
Key Costs (HK$’m) Capex (HK$’m) 533 522 2,710 -3% 2,627 14% 14% 2017 2018 2017 2018 capex over service revenue 11
Slide 13: Net Cash (HK$'m)
Net Cash (HK$’m) • Cater for future network enhancement and 5G needs • Strong position for future operational needs 9,817 9,555 • After settlement of transaction costs for disposal of fixed-line Dec 2017 Dec 2018 12
Slide 14: Business Review and Developments
Business Review and Developments
Slide 15: Technology
Technology 5CC CA 5G indoor & outdoor commercial 5CC Carrier Aggregation MIMO 5G network trials (FDD + TDD) Comprehensive mobile coverage All Cloud core network to usher in along the Hong Kong–Zhuhai– the 5G era Macao Bridge and Guangzhou- Shenzhen-Hong Kong Express Link 14
Slide 16: Technology - Digital Transformation
Technology - Digital Transformation Fully leverage Digital Technologies to improve customer engagement and operational efficiency Flexible Digital Focus on the Experience Operating Model Commerce Platform Digitalization Cognitive & Analytics Emerging Cloud Technologies Convergent Billing BIG DATA 5G
Slide 17: Business
Business … Digitalized Customer Service & Ommi Channels Transforming Propositions for Travel Market Target Sectors for 3InnoCity Solutions NB-IoT 16
Slide 18: Digitalised Customer Service & Omni Channels
Digitalised Customer Service & Omni Channels
Slide 19: Transforming Propositions for Travel Markets (Postpaid)
Transforming Propositions for Travel Markets (Postpaid) China Data Proposition Global Data Proposition China Data Demand High China HK Macau Mid Fun Share Mid Low 18
Slide 20: Transforming Propositions for Travel Markets (Prepaid)
Transforming Propositions for Travel Markets (Prepaid) Prepaid Travel Prepaid SIM Prepaid eSIM eSIM • Unlimited Roaming Data & Fun! 19
Slide 21: Target Sectors for 3InnoCity Solutions
Target Sectors for 3InnoCity Solutions FSI Retail Property Professional Management & Services Constructions Sizable SME 20
Slide 22: Outlook
OutlooK Hutchison Telecom Hong Kong Holdings BE HLcaEnsee eR
Slide 23: Profitability and Value Creation
Profitability and Value Creation • Value creation to combat price competition Fun Share • Innovative proposition to travelers’ segment • Unique local service offerings • Develop new digital business revenue streams 22
Slide 24: 3・OneWorld Strategy
3・OneWorld Strategy Develop a quality ‘OneWorld’ telecoms experience by digital lifestyles offering in: Travel OneWorld FinTech Insurance Beauty & Health Handsets & Accessories 23
Slide 25: 3・Getaway Strategy
3・Getaway Strategy • Innovative travel ecosystem • Travel data & voice service under local charge • Carefree telecoms experience while aboard • Hassle-free data & voice 48
Slide 26: Premium Segment with Digital Lifestyle Differentiation
Premium Segment with Digital Lifestyle Differentiation Bill Spending + Product + Unique = Upsell Recommendation Experience Bill Spending Upsell Unique Experience Entertainment Lifestyle Jetso Product Recommendation Travel Wine & Dine 25
Slide 27: Channel Segmentation Strategy
Channel Segmentation Strategy Upscale/Premium Segment 3Supreme+ 3Shop Mass Segment AT3 Device & Accessory 26
Slide 28: Business - ICT/5G Solution Strategy
Business - ICT/5G Solution Strategy Public awareness of smart city development Alliance with startups of solution partners • IoT & mobile solutions enabled • enhanced by NBIoT availability Digital ID Big data for operational efficiency 27
Slide 29: Leading Technology for Future
Leading Technology for Future • Accelerate digital transformation and deploy latest technologies • Continue with latest NB IoT ecosystem expansion and business development • Prepare deploying network architecture evolution for 5G 5G outdoor network trials in Causeway Bay 28
Slide 30: Expand O2O2O Channel - 3Live Box
Expand O2O2O Channel - 3Live Box • New mobile retail platform • Expand and enhance customer touchpoints • Initiate new B2C & B2B2C business models for merchants, advertisers and payment platforms Products 29
Slide 31: Q&A
O&A HE Hutchison Telecom Hong Kong Holdings ER Axctase ep
Slide 32: Financial Summary
Appendix Financial Summary 2018 2017 HK$ million HK$ million Change Revenue 7,912 6,752 +17% - Net customer service revenue 3,662 3,853 -5% - Local service revenue 2,980 3,176 -6% - Roamingrevenue - Hardware service revenue 682 677 +1% - Hardware revenue 4,250 2,899 +47% Net customer service margin
Slide 33: Thank you
Hutchison Telecom Hong Kong Holdings AS 6 #R BE Aue Thank you Gr A member of CK Hutchison Holdings
Hutchison Telecommunications Hong Kong Holdings — FY2018 Earnings Presentation on 6ix