Hkbn Ltd. · HKEX:1310
Hkbn — H1 2021 Earnings Presentation
22 slides from Hkbn's earnings presentation, Apr 21, 2021
Slide 1: HKBN Ltd. FY21 Interim Results Announcement
HKBN Ltd. FY21 Interim Results Announcement 21 April 2021 Presentation by: William Yeung, Co-Owner & Executive Vice-chairman NiQ Lai, Co-Owner & Group Chief Executive Officer
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: NiQ Lai, Co-Owner & Group Chief Executive Officer
NiQ Lai Co-Owner & Group Chief Executive Officer 3
Slide 4: We Overcome COVID-19 through CHANGE
We Overcome COVID-19 through CHANGE Challenges Our Actions • ARPU pressure with reduced Positioning as best value proposition for switching activity in times of economic enterprises and residential customers uncertainty Transformation into integrated solution • Stagnant growth in SME sector due prov
Slide 5: Resilient Performance Amid COVID-19
Resilient Performance Amid COVID-19 Inclusive of ESS Pass-through to Talents Service Revenue EBITDA# Core AFF* $3,840m $1,312m $505m YoY +9% YoY +2% YoY +7% DPS : 39 HK Cents YoY +5% - JOS acquisitions completed in Dec-19; 1H2021 results included 6 months of JOS performance vs 2.5 months of JOS in 1
Slide 6: Growth in Enterprise and Stable in Residential
Growth in Enterprise and Stable in Residential 105k $3,028 $2,616m Enterprise Enterprise Enterprise Service Solutions Customers ARPU Revenue +1% +9% +15% 886k $191 $1,239m Residential Broadband Residential Service Solutions Subscriptions ARPU# Revenue # 0% +1% -1% # Residential ARPU refers to histor
Slide 7: Consecutive Dividend Growth
Consecutive Dividend Growth For >930 Co-Owners, This is our Families’ AFF 1H2021: 39 DPS (+5% YoY) FY20: 75 DPS FY19: 70 DPS (+7% YoY) (+25% YoY) 38 39 FY18: 56 DPS 36 37 (+24% YoY) 34 FY17: 45 DPS (+13% YoY) 30 FY16: 40 DPS 26 FY15: 20 DPS 22 23 20 20 20 FY15 2H FY16 1H FY16 2H FY17 1H FY17 2H FY18
Slide 8: Sustaining Growth in EBITDA & Core AFF
Sustaining Growth in EBITDA & Core AFF Financials in HK$mn, unless otherwise stated Revenue EBITDA Core AFF* +47% +85% +53% +40% +2% 2,505 +7% 9,453 1,146 1,709 6,230 1,283 1,312 750 5,108 4,457 472 505 FY19 FY20 1H2020 1H2021 FY19 FY20 1H2020 1H2021 FY19 FY20 1H2020 1H2021 (HKAS17) - JOS acquisitio
Slide 9: Manageable Debt Profile
Manageable Debt Profile • Successfully refinanced ~$10.5 billion of Net Leverage Ratio# debt with improved terms and headroom 4.4x • Average finance cost shall reduce to HIBOR+1.5%, further interest savings to materialise in FY22 • Average remaining life of 3.3 years. Increase to 4.6 years after ref
Slide 10: The Power of 1-HKBN's Relationship Management
The Power of 1-HKBN’s Relationship Management WE LEAD CHANGE One-stop Premier Skin-in-your-game Industry Experts ICT Solutions 5G A multinational A HK-based A HK-based An organization providing professional services mobile carrier food, beverage and public healthcare services network of firms in Hon
Slide 11: Growth Initiatives
Growth Initiatives WTT/JOS 5G MVNO Entertainment New Services HOME+ Integration WiFi-6 gateway Overseas OTT Partnership with Network security JOOX 3HK IT managed services … and more Services upsell Planning for Co-Ownership IV in FY22-24 11
Slide 12: William Yeung
William Yeung Co-Owner & Executive Vice-chairman 12
Slide 13: Quad-play per Household… Infinite Play
Why HOME+ ? + From ARPU-focused ... to Infinite-play Quad-play per Household… per Customer Triple Play Quad Play Double Play (Broadband (Broadband + (Broadband + Fixed voice Infinite + Fixed voice) Fixed voice + OTT) + OTT+ Mobile) Play Transformation from Telecom to All-in-One Ecosystem 13
Slide 14: JV with the Right Partners
Go BIG & Go FAST JV with the Right Partners Line-up of HOME+ JV Telecom & technology Food and FMCG Logistics service Other solutions provider distributor provider investors Our shareholders’ value propositions… Managerial Existing Established Massive Prime Efficient and customer + wholesale + eyebal
Slide 15: Hit the Ground Running Since Launched in Nov-20
Promising Start Hit the Ground Running Since Launched in Nov-20 Solid figures after 4 months : ▪ >10,000 SKUs ▪ >500 Merchants/brands ▪ from ~100 average daily sales in Nov-20 to ~700 in Feb-21 ▪ Highest daily sales >2,000 15
Slide 16: The End
Bet eta HONG KONG BROADBAND NETWORK The End Changing the Game
Slide 17: Appendix
Appendix 17
Slide 18: Operational Highlights – Enterprise Solutions
Operational Highlights – Enterprise Solutions YoY 1H2020 1H2021 Changes Commercial building coverage 7,295 7,418 +2% Subscriptions ('000) - Broadband 116 118 +2% - Voice 453 434 -4% Market share - Broadband 37.6% 36.7% -0.9pp - Voice 25.6% 25.2% -0.4pp Enterprise customers ('000) 104 105 +1% Broadba
Slide 19: Operational Highlights – Residential Solutions
Operational Highlights – Residential Solutions YoY 1H2020 1H2021 Changes Residential homes passed ('000) 2,377 2,438 +3% Subscriptions ('000) - Broadband 882 886 +0% - Voice 501 485 -3% Market share - Broadband 35.5% 34.4% -1.1pp - Voice 22.2% 22.2% -0pp Residential customers ('000) 1,017 1,011 -1%
Slide 20: Consolidated Income Statement
Consolidated Income Statement (HK$ million, unless otherwise stated) 1H2020 1H2021 YoY Changes Enterprise Solutions 2,276 2,616 +15% Enterprise Solutions related Product 636 1,249 +96% Residential Solutions 1,252 1,224 -2% Other product 294 1,141 >100% Turnover 4,457 6,230 +40% Other net income 19 5
Slide 21: Consolidated Balance Sheet (Summary)
Consolidated Balance Sheet (Summary) At 29 February At 31 August At 28 February (HK$ million, unless otherwise stated) 2020 2020 2021 Non-current assets 19,480 19,211 18,624 Current assets 3,042 2,913 3,346 Current liabilities 3,737 4,632 4,439 Total assets less current liabilities 18,784 17,492 17,
Slide 22: Reconciliation of EBITDA and Adjusted Free Cash Flow
Reconciliation of EBITDA and Adjusted Free Cash Flow (HK$ million, unless otherwise stated) 1H2020 1H2021 YoY Changes Profit for the year 132 49 -63% Finance costs 286 325 14% Interest income (2) (1) -17% Income tax charge/ (credit) (52) 42 >100% Depreciation 466 508 9% Amortisation of intangible as