Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — H1 2019 Earnings Presentation
24 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Jul 30, 2019
Slide 1: 2019 Interim Results Presentation
2019 Interim Results Presentation 30 July 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: 1H 2019 Financial Highlights
1H 2019 Financial Highlights Post-IFRS 16 Basis Pre-IFRS 16 Basis Service Service Service Service Service Service Revenue EBITDA EBIT Revenue EBITDA EBIT HK$1,782m HK$778m HK$151m HK$1,782m HK$545m HK$142m -3% +34% -13% -3% -6% -18% Key cost Interim Key cost Profit Profit items Dividend items HK$1,0
Slide 4: Financial Review
Financial Review EB Hutchison Telecom Hong Kong Holdings BE Acinres2H
Slide 5: Service revenue and roaming service revenue
Service revenue (HK$’m) 1,843 1,782 -3% • Service revenue is challenging 1H 2018 1H 2019 Roaming service revenue (HK$’m) 358 349 +3% • Introduction of innovative roaming 19% 20% products and packages for frequent and leisure travellers 1H 2018 1H 2019 roaming service revenue over 4 total service rev
Slide 6: Customers
Customers Postpaid 1,499K 1,499K 0.5% 1,491K Total 3,414K 3,276K 3,328K 4.0% 1.6% 1H 2018 2H 2018 1H 2019 Prepaid 1,915K 7.2% 1,777K 3.4% 1,837K 1H 2018 2H 2018 1H 2019 1H 2018 2H 2018 1H 2019 5
Slide 7: Churn and ARPU
Churn and ARPU Postpaid Churn Blended postpaid gross ARPU(1) and net ARPU(1) 1H 2018 2H 2018 1H 2019 Gross ARPU Net ARPU 222 217 205 188 184 175 1.1% 1.2% improved 1.4% 1H 2018 2H 2018 1H 2019 1H 2018 2H 2018 1H 2019 Note 1 Postpaid Gross ARPU = monthly average spending per postpaid user including h
Slide 8: 4G network data usage
4G Network data usage 28% • Growing data demand 23% • Innovative data product and 38% package offerings • Up 57% YoY 2H 2017 1H 2018 2H 2018 1H 2019 7
Slide 9: Key Costs and Capex
Key Costs (Pre-IFRS 16 basis) (HK$’m) Capex (HK$’m) 282 1,300 -2% 1,272 15% 154 9% 1H 2018 1H 2019 1H 2018 1H 2019 capex over service revenue 8
Slide 10: Net Cash
Net Cash (HK$’m) • After the settlement of special interim dividend and final dividend as well as the consideration of acquiring 4,009 non-controlling interests 471 278 - • Cater for future network 9,555 5,353 enhancement and 5G needs Dec 2018 Special interim dividend and Acquisition of NCI Other it
Slide 11: Business Review and Developments
Business Review and Developments
Slide 12: 3・OneWorld Strategy
3・OneWorld Strategy OneWorld FinTech Travel Gadgets & Insurance Accessories
Slide 13: Comprehensive Roaming Products
Comprehensive Roaming Products Frequently Getaway Occasionally Roam-In-Command Irregularly Day Pass Prepaid Prepaid 12
Slide 14: Greater China Travel Proposition
Greater China Travel Proposition Postpaid plan Top-up Choice Prepaid Card
Slide 15: Getaway (Global Travel) Proposition
Getaway (Global Travel) Proposition More varieties on Getaway services Getaway Deluxe Getaway Handset Getaway all-in Getaway Service 2
Slide 16: Segmentation Strategy
Segmentation Strategy High Tier 3Supreme Mid Tier + Low Tier AT3
Slide 17: 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 18: Outlook
OutlooK Hutchison Telecom Hong Kong Holdings BE HLcaEnsee eR
Slide 19: Grow New Revenue by Corporate Solutions
Grow New Revenue by Corporate Solutions Advanced SMS e-Payment Manager Solutions SMS Smart Parking Smart Monitoring P
Slide 20: 3Care - Proposition for Handset Plans Boost
3Care - Proposition for Handset Plans Boost
Slide 21: Appendix
Appendix HE Hutchison Telecom Hong Kong Holdings ER Axctase ep
Slide 22: Financial Summary
Appendix Financial Summary Favourable/ 1H 2019 1H 2018 (unfavourble) HK$ million HK$ million Change Revenue 2,515 4,021 -37% - Net customer service revenue 1,782 1,843 -3% l Local service revenue 1,424 1,494 -5% l Roaming service revenue 358 349 +3% - Data 246 211 +17% - Non-data 112 138 -19% - Hard
Slide 23: Financial Summary
Appendix Financial Summary Favourable/ 1H 2019 1H 2018 (unfavourble) HK$ million HK$ million Change Post-IFRS 16 basis EBITDA 787 601 +31% Service EBITDA 778 579 +34% Service EBITDA margin % 44% 31% +13% points Depreciation and amortisation (603) (381) -58% EBIT 160 195 -18% Service EBIT 151 173 -13
Slide 24: Thank you
Hutchison Telecom Hong Kong Holdings AS 6 #R BE Aue Thank you Gr A member of CK Hutchison Holdings
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