Financial Performance - The company reported a significant increase in performance, with revenue growth exceeding 100% for the fiscal year ending December 31, 2023[1]. Communication and Transparency - The company maintains its commitment to transparency and accuracy in its financial reporting[1]. - The company emphasizes the importance of accurate communication in its financial disclosures to avoid misunderstandings[1]. - The company is focused on maintaining the integrity of its financial announcements across both English and Chinese versions[1]. Governance and Leadership - The board of directors includes key executives such as the chairman and the acting group managing director, ensuring strong leadership[1]. - The company has a diverse board with both executive and independent non-executive directors, enhancing governance[1]. - The legal affairs director and company secretary is responsible for ensuring compliance with regulatory requirements[1]. Stakeholder Engagement - The announcement was made on February 23, 2024, indicating timely updates to stakeholders[1]. - The announcement serves as a reminder of the company's commitment to its shareholders and the market[1]. - The announcement clarifies that the translation of "more than tripled" should be interpreted as "growth exceeding double" and "almost doubled" as "growth close to one" in Chinese[1].

Revenue Performance - Revenue increased by 1% to HKD 36.347 billion[4] - Total revenue for Hong Kong Telecommunications increased by 1% year-over-year to HKD 34,330 million in 2023[10] - Revenue from telecommunications services rose by 1% to HKD 24,170 million, with local telecommunications services growing by 2% to HKD 16,873 million[12] - OTT business revenue surged by 22% to HKD 2.452 billion, driven by a 32% increase in subscription revenue[5] - Free TV and related business revenue grew by 5% to HKD 0.952 billion[4] - Revenue from other businesses reached HKD 767 million, with an EBITDA cost of HKD 697 million for the year ending December 31, 2023[27] - The external revenue from the Hong Kong segment decreased slightly to HKD 28,477 million in 2023 from HKD 28,613 million in 2022, a decline of approximately 0.48%[86] - The revenue from mainland China and other regions increased to HKD 1,590 million in 2023, up from HKD 1,237 million in 2022, reflecting a growth of about 28.54%[86] Profitability and Loss - The company reported a loss attributable to equity holders of HKD 0.471 billion from continuing operations[7] - The company reported a net loss attributable to equity holders of HKD 471 million, a 30% improvement compared to the previous year[10] - The company reported a net loss attributable to equity holders of the company from continuing operations of HKD (471) million in 2023 compared to a loss of HKD (676) million in 2022[60] - The company’s financing costs increased significantly to HKD (2,661) million in 2023 from HKD (1,826) million in 2022, an increase of 46%[60] - The total comprehensive income for the year was HKD 1,472 million, down 36.3% from HKD 2,310 million in 2022[61] EBITDA and Margins - EBITDA rose by 4% to HKD 12.831 billion, with a margin increase to 35%[7] - EBITDA for OTT business increased over threefold to HKD 0.592 billion[4] - EBITDA for Hong Kong Telecommunications reached HKD 13,400 million, reflecting a 3% increase compared to the previous year[12] - Overall EBITDA for the year ending December 31, 2023, rose by 4% to HKD 128.31 billion, with a margin of 35%[33] - The overall EBITDA margin improved to 39% in the second half of 2023, up from 37% in the same period last year[12] Dividends - Final dividend declared at HKD 0.2848 per share, totaling HKD 0.3825 for the year[7] - The company proposed a final dividend of HKD 0.4444 per share, bringing the total annual dividend to HKD 0.7649 per share[17] - The board proposed a final dividend of HKD 0.2848 per ordinary share for the year ended December 31, 2023, consistent with the previous year's dividend[51] Operational Highlights - The number of paid users for Viu increased by 10% to 13.4 million[5] - The customer base for 5G services reached nearly 1.4 million, accounting for 41% of postpaid customers by the end of December 2023[13] - Local data revenue recorded a significant growth of 10%, with total contract value from enterprise customers exceeding HKD 4 billion by year-end[15] - ViuTV's digital platform registered over 3 million members, reflecting a 9% year-on-year growth[24] Costs and Expenses - The total cost of sales increased by 1% to HKD 18,116 million, reflecting ongoing operational expenses[10] - Operating costs decreased by 6% to HKD 5.4 billion, primarily due to a 12% reduction in Hong Kong Telecommunications' operating costs[30] - The total operating cost to revenue ratio improved from 16% to 15%[30] Debt and Financing - Total debt as of December 31, 2023, was HKD 523.29 billion, up from HKD 498.99 billion in the previous year[41] - The group has unutilized bank credit facilities totaling HKD 20.488 billion as of December 31, 2023[69] - The group anticipates that it can meet its debt obligations due within the next 12 months based on operational cash inflows and additional debt financing capabilities[69] Employee and Corporate Governance - The group employed over 15,000 employees across 25 countries and cities as of December 31, 2023, with approximately 65% based in Hong Kong[50] - The group has established performance bonus and incentive plans to encourage and reward employees based on overall group performance, EBITDA, and free cash flow targets[50] Financial Position - Non-current assets increased to HKD 80,352 million in 2023 from HKD 78,018 million in 2022, reflecting a growth of 2.98%[62] - Current liabilities decreased to HKD 20,768 million in 2023 from HKD 24,374 million in 2022, a reduction of 14.5%[63] - Total equity attributable to the company's equity holders decreased to HKD 2,481 million in 2023 from HKD 5,554 million in 2022, a decline of 55.4%[65] - The company’s cash and cash equivalents decreased to HKD 2,627 million in 2023 from HKD 3,009 million in 2022, a decrease of 12.7%[63] Strategic Initiatives - The company aims to explore various opportunities for sustainable growth amid changing economic conditions[8] - The company aims to continue providing quality content and expand distribution to other platforms and markets[25] - The group continues to invest in enhancing digital capabilities to support existing business and drive growth in new areas, while cautiously investing in the expansion of the 5G network[43]

Revenue Growth - Viu's OTT business revenue increased by 24% year-on-year to HKD 971 million in the first half of 2023[10] - Viu's revenue recorded a significant year-on-year growth of 30%, driven by a dual business model of AVOD and SVOD[10] - The interim report for 2023 indicates that the company achieved a revenue of HKD 7.5 billion, representing a year-on-year increase of 5%[26] - Revenue for the first half of 2023 was reported at HKD 12.5 billion, representing a 10% increase compared to the same period last year[35] - Total revenue for the six months ending June 30, 2023, was HKD 16,850 million, up from HKD 16,738 million in 2022, representing a growth of 0.67%[100] - The company has projected a revenue growth of 6% for the next fiscal year, aiming for HKD 8 billion in total revenue[26] - The company aims to improve operational efficiency, targeting a 5% reduction in costs through digital transformation initiatives[35] User Engagement - Monthly active users of Viu grew by 8% year-on-year to 65.5 million, while paid users increased by 21% to 11 million[10] - ViuTV's registered members increased by 14% year-on-year to over 3 million, enhancing digital platform engagement[12] - The average revenue per user (ARPU) is expected to grow as customers upgrade to higher bandwidth services, with FTTH network coverage reaching 98%[13] - Customer satisfaction ratings have improved by 12%, reflecting enhanced service quality and support[35] Strategic Partnerships and Investments - The strategic partnership with CANAL+ involves a total investment of USD 300 million, aimed at expanding Viu's global market presence[11] - The company is preparing for the potential launch of the "Digital Hong Kong Dollar" as part of a cross-industry alliance[7] - The company is considering strategic acquisitions to bolster its service portfolio, with a budget of up to HKD 2 billion allocated for potential deals[26] - The company is investing HKD 1 billion in technology research and development to enhance service offerings and improve customer experience[26] Telecommunications and Infrastructure - The 5G customer base grew to nearly 1.2 million by June 2023, supporting the demand for mobile data roaming services[5] - The launch of 5000M FTTH service addresses the increasing bandwidth needs of users[5] - Hong Kong Telecom completed the construction of a fiber optic cable connecting to Lamma Island, supporting online work and education[6] - The company has expanded its fiber network to remote areas, including Lamma Island, preparing to offer up to 10G home broadband services[15] Financial Performance - The company reported a loss attributable to equity holders of HKD 486 million for the period[55] - The company reported a significant increase in user data, with a 15% year-over-year growth in active subscribers, reaching 3.5 million users[35] - The company reported a net profit margin of 12%, maintaining a stable performance amidst market fluctuations[26] - The company reported a net loss of HKD 88 million for the six months ended June 30, 2023, compared to a profit of HKD 931 million for the same period in 2022[107] Cost Management - Operating costs, excluding depreciation and amortization, increased by 5% to HKD 2,927 million[59] - The total cost of sales for the six months ended June 30, 2023, was HKD 5,739 million, compared to HKD 5,360 million in 2022, an increase of 7.09%[125] - The financing costs increased significantly to HKD 1,153 million for the six months ended June 30, 2023, compared to HKD 721 million in 2022, an increase of 60.06%[123] Dividends and Shareholder Returns - The board has approved a dividend payout of HKD 0.50 per share, reflecting a commitment to returning value to shareholders[26] - The interim dividend declared for the six months ending June 30, 2023, is HKD 0.0977 per share, an increase from HKD 0.0956 in 2022[98] - The company declared dividends amounting to HKD 2,139 million for the previous year, reflecting a significant cash outflow[107] Market Expansion - The company is expanding its market presence in Southeast Asia, targeting a 20% market share in the region by 2025[35] - Market expansion plans include entering two new regions, targeting a 10% increase in market share by the end of the next fiscal year[26] Employee Engagement and Management - The company has established performance bonus and incentive plans to encourage and reward employees based on overall group performance and individual assessments[97] - The company has adopted two stock incentive plans aimed at rewarding qualified participants for their contributions and attracting suitable talent[178] Financial Instruments and Valuation - The fair value of non-listed securities increased from HKD 124 million to HKD 147 million, while the fair value of non-listed financial assets rose from HKD 1,670 million to HKD 2,785 million for the same period[158][159] - The company’s financial instruments are measured at amortized cost, with no significant differences from their fair values as of the reporting dates[161]

[Performance Highlights and Management Review](index=1&type=section&id=Performance%20Highlights%20and%20Management%20Review) [Performance Highlights](index=1&type=section&id=Performance%20Highlights) In H1 2023, the Group's overall EBITDA increased by 2% to HK$5.631 billion, primarily driven by strong performance from HKT and OTT businesses, despite an expanded loss attributable to equity holders 2023 H1 Key Performance Indicators | Indicator | H1 2023 | Year-on-Year Change | | :--- | :--- | :--- | | Consolidated EBITDA | HK$5.631 billion | +2% | | HKT EBITDA | HK$6.009 billion | +3% | | OTT Business EBITDA | HK$165 million | >800% (over nine times) | | Free TV and Related Business Revenue | HK$390 million | +1% | | Free TV and Related Business EBITDA | HK$83 million | +5% | | Loss Attributable to Equity Holders | HK$486 million | - | | Interim Dividend | HK$9.77 cents per share | - | - The company established a strategic partnership with CANAL+, which will invest a total of **US$300 million** to accelerate Viu's business development[3](index=3&type=chunk)[4](index=4&type=chunk) [Management Review](index=2&type=section&id=Management%20Review) Management notes solid operating performance in H1 2023 for media and telecom businesses amid Hong Kong's economic recovery, with strong growth in OTT and Free TV, and steady performance in HKT Group Overall Financial Performance (H1 2023) | Indicator | Amount (HKD) | Year-on-Year Change | | :--- | :--- | :--- | | Consolidated Revenue | HK$16.85 billion | +1% | | Consolidated EBITDA | HK$5.631 billion | +2% | | Loss Attributable to Equity Holders | HK$486 million | - | | Interim Dividend | HK$9.77 cents per share | - | - OTT business (Viu) performed exceptionally well, with revenue growing **24%** to **HK$971 million** and EBITDA reaching **HK$165 million**, over nine times that of the same period last year, primarily driven by growth in monthly active users (**+8%**) and paying users (**+21%**)[4](index=4&type=chunk) - HKT business total revenue increased by **2%**, or **3%** excluding mobile product sales, primarily benefiting from enterprise digital transformation projects, demand for fiber services, recovery in roaming revenue, and 5G service adoption[4](index=4&type=chunk) [Segmental Business Financial Review](index=3&type=section&id=Segmental%20Business%20Financial%20Review) [Overall Financial Overview](index=3&type=section&id=Overall%20Financial%20Overview) In H1 2023, the Group's consolidated revenue grew 1% to HK$16.85 billion and EBITDA increased 2% to HK$5.631 billion, driven by OTT and HKT, but a 60% surge in finance costs led to a 33% drop in profit before tax and an expanded loss attributable to equity holders Revenue and EBITDA by Business Segment (Six Months Ended June 30, 2023) | Business Segment | Revenue (HK$ Million) | Revenue Year-on-Year Change | EBITDA (HK$ Million) | EBITDA Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | HKT | 16,400 | +2% | 6,009 | +3% | | OTT Business | 971 | +24% | 165 | >800% | | Free TV and Related Businesses | 390 | +1% | 83 | +5% | | Other Businesses | 369 | (8)% | (294) | (3)% | | **Consolidated** | **16,850** | **+1%** | **5,631** | **+2%** | - Finance costs significantly increased by **60%** year-on-year to **HK$1.153 billion**, which is one of the main reasons for the pressure on the Group's profitability and the recorded loss[7](index=7&type=chunk) [Hong Kong Telecommunications (HKT)](index=5&type=section&id=Hong%20Kong%20Telecommunications%20(HKT)) HKT achieved steady growth in H1 2023, with total revenue up 2% to HK$16.4 billion and EBITDA up 3% to HK$6.009 billion, primarily driven by mobile communication services and local data business HKT Key Financial Data (H1 2023) | Indicator | Amount (HK$ Million) | Year-on-Year Change | | :--- | :--- | :--- | | Total Revenue | 16,400 | +2% | | EBITDA | 6,009 | +3% | | Mobile Communication Service Revenue | 3,815 | +5% | | Adjusted Funds Flow | 2,429 | +2% | - Roaming business significantly recovered, with total roaming revenue in H1 2023 surging by **166%** year-on-year, and outbound roaming revenue in June recovering to **80%** of pre-pandemic levels[10](index=10&type=chunk) - The 5G service customer base continued to expand, reaching nearly **1.2 million** as of June 30, 2023, accounting for **35%** of total postpaid customers[10](index=10&type=chunk) [OTT Business](index=7&type=section&id=OTT%20Business) The OTT business performed exceptionally well in H1 2023, with revenue significantly increasing by 24% to HK$971 million and EBITDA soaring over 8 times to HK$165 million, driven by strong user growth in Viu video streaming service Viu Operating Indicators (As of June 30, 2023) | Indicator | Quantity | Year-on-Year Change | | :--- | :--- | :--- | | Monthly Active Users (MAU) | 65.5 million | +8% | | Paying Users | 11 million | +21% | - Viu Original content received widespread acclaim, for example, the Korean drama "Taxi Driver 2" topped Viu's market viewership for nine consecutive weeks, driving audience engagement[13](index=13&type=chunk) - The strategic partnership with CANAL+ will bring **US$300 million** in investment to Viu, aiming to accelerate its global market expansion and content creation capabilities[13](index=13&type=chunk) [Free TV and Related Businesses](index=8&type=section&id=Free%20TV%20and%20Related%20Businesses) Free TV and related businesses remained stable in H1 2023, with revenue slightly increasing by 1% to HK$390 million and EBITDA growing 5% to HK$83 million, driven by stable advertising and effective cost control Free TV and Related Businesses Financial Performance (H1 2023) | Indicator | Amount (HK$ Million) | Year-on-Year Change | | :--- | :--- | :--- | | Revenue | 390 | +1% | | EBITDA | 83 | +5% | - Business growth was driven by stable advertising revenue, as well as artist management and event revenue from the increased film, music, and endorsement opportunities for its artists[14](index=14&type=chunk) - ViuTV focused on enhancing digital engagement, with registered digital members increasing by **14%** year-on-year to over **3 million**[15](index=15&type=chunk) [Other Businesses and Elimination Items](index=9&type=section&id=Other%20Businesses%20and%20Elimination%20Items) Other businesses, primarily enterprise solutions and corporate support services, recorded HK$369 million in revenue and HK$294 million in EBITDA cost, while elimination items reflect inter-segment transactions - Other businesses recorded revenue of **HK$369 million** and EBITDA cost of **HK$294 million** in H1 2023[16](index=16&type=chunk) - Elimination items reflecting inter-group transactions amounted to **HK$1.28 billion**[17](index=17&type=chunk) [Consolidated Financial Analysis](index=9&type=section&id=Consolidated%20Financial%20Analysis) [Cost Analysis](index=9&type=section&id=Cost%20Analysis) In H1 2023, the Group's cost of sales increased by 2% to HK$8.292 billion, while operating costs before depreciation and amortization decreased by 5% to HK$2.927 billion due to HKT's cost control, though depreciation and amortization rose 3% to HK$3.807 billion from media content investments - HKT's operating cost savings of **4%** were primarily due to digitalization of business processes and optimization of sales channels, leading to a reduction in the Group's overall operating cost to revenue ratio from **18%** to **17%**[19](index=19&type=chunk) - Content-related amortization expenses increased from **HK$738 million** in the same period last year to **HK$1.019 billion**, primarily due to media businesses' investment in content libraries[19](index=19&type=chunk) [Profitability Analysis](index=10&type=section&id=Profitability%20Analysis) Despite a 2% increase in consolidated EBITDA to HK$5.631 billion, the Group's profitability faced significant pressure due to a 60% surge in finance costs, resulting in a loss attributable to equity holders of HK$486 million from continuing operations - Consolidated EBITDA increased by **2%** to **HK$5.631 billion**, with the margin improving from **32.9%** to **33.4%**, reflecting improved operating efficiency at HKT and better profitability in the OTT business[20](index=20&type=chunk) - Net finance costs increased by **57%** from **HK$678 million** in the same period last year to **HK$1.066 billion**, primarily due to rising HIBOR[21](index=21&type=chunk) - For the six months ended June 30, 2023, loss attributable to equity holders from continuing operations was **HK$486 million**[26](index=26&type=chunk) [Liquidity, Capital Resources, and Risk Management](index=11&type=section&id=Liquidity,%20Capital%20Resources,%20and%20Risk%20Management) [Liquidity and Capital Structure](index=11&type=section&id=Liquidity%20and%20Capital%20Structure) As of June 30, 2023, the Group maintained ample liquidity with HK$20.719 billion in unutilized bank credit facilities, despite total debt of HK$51.597 billion and a debt-to-asset ratio of 56% Capital Structure Overview (As of June 30, 2023) | Indicator | Amount (HKD) | | :--- | :--- | | Total Debt | HK$51.597 billion | | Cash and Short-term Deposits | HK$2.563 billion | | Unutilized Bank Credit Facilities | HK$20.719 billion | - Subsidiaries CAS Holding No. 1 Limited and Hong Kong Telecommunications (HKT) Limited both maintained investment-grade credit ratings[27](index=27&type=chunk) [Capital Expenditure](index=11&type=section&id=Capital%20Expenditure) In H1 2023, the Group's capital expenditure slightly decreased to HK$1.141 billion, with HKT accounting for approximately 99%, reflecting the completion of the large-scale 5G network rollout and a shift towards capacity and indoor coverage enhancements - The Group's capital expenditure was **HK$1.141 billion**, a decrease from **HK$1.199 billion** in the same period last year, with the capital expenditure to revenue ratio at **6.8%**[28](index=28&type=chunk) [Risk Management and Hedging](index=11&type=section&id=Risk%20Management%20and%20Hedging) The Group actively manages foreign currency and interest rate risks without speculative derivatives, benefiting from natural hedging for most transactions and utilizing forward and swap contracts for foreign currency financing - The Group's business is not significantly exposed to risks from foreign exchange fluctuations, primarily due to natural hedging[29](index=29&type=chunk) - The Group uses forward and swap contracts to manage exchange rate and interest rate risks arising from foreign currency financing[30](index=30&type=chunk) [Shareholder Returns and Corporate Governance](index=12&type=section&id=Shareholder%20Returns%20and%20Corporate%20Governance) [Interim Dividend](index=12&type=section&id=Interim%20Dividend) The Board declared an interim dividend of HK$9.77 cents per ordinary share for the six months ended June 30, 2023, to be paid on or about September 6, 2023 2023 Interim Dividend Details | Item | Content | | :--- | :--- | | Interim Dividend | HK$9.77 cents per ordinary share | | Record Date | August 22, 2023 | | Payment Date | On or about September 6, 2023 | [Human Resources](index=12&type=section&id=Human%20Resources) As of June 30, 2023, the Group employed over 16,200 employees globally across 25 countries and cities, with approximately 66% based in Hong Kong, supported by performance bonus and incentive schemes - As of June 30, 2023, the Group's total global employees exceeded **16,200**[32](index=32&type=chunk) [Corporate Governance and Compliance](index=13&type=section&id=Corporate%20Governance%20and%20Compliance) The Audit Committee reviewed the unaudited interim financial information, confirming the company's compliance with the Corporate Governance Code and no purchases, sales, or redemptions of its listed securities during the reporting period - For the six months ended June 30, 2023, the company consistently applied and complied with the principles and all applicable code provisions of the Corporate Governance Code[36](index=36&type=chunk) - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[35](index=35&type=chunk) [Condensed Consolidated Interim Financial Statements](index=14&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Consolidated Income Statement](index=14&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2023, the Group recorded a 1% revenue increase to HK$16.85 billion, but rising finance costs led to a 33% decrease in profit before tax and a loss attributable to equity holders of HK$486 million Consolidated Income Statement Summary (Six Months Ended June 30, 2023) | Item (HK$ Million) | H1 2023 | H1 2022 (Restated) | | :--- | :--- | :--- | | Revenue | 16,850 | 16,738 | | Profit Before Tax | 874 | 1,299 | | Profit for the Period | 512 | 825 | | Loss Attributable to Equity Holders of the Company | (486) | (194) | | Basic Loss Per Share | (6.29) cents | (2.51) cents | [Consolidated Statement of Financial Position](index=16&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets were HK$91.826 billion, total liabilities HK$81.045 billion, and total equity HK$10.781 billion, with current liabilities exceeding current assets by HK$4.786 billion Consolidated Statement of Financial Position Summary (As of June 30, 2023) | Item (HK$ Million) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Non-current Assets | 78,339 | 78,018 | | Current Assets | 13,487 | 17,046 | | **Total Assets** | **91,826** | **95,064** | | Current Liabilities | (18,273) | (24,374) | | Non-current Liabilities | (62,772) | (57,925) | | **Total Liabilities** | **(81,045)** | **(82,299)** | | **Total Equity** | **10,781** | **12,765** | | Equity Attributable to Equity Holders of the Company | 3,803 | 5,554 | [Notes to the Financial Statements](index=19&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes provide detailed explanations of accounting policies, business segments, discontinued operations, dividends, and receivables, highlighting management's going concern assessment despite net current liabilities [Basis of Preparation and Going Concern](index=19&type=section&id=Basis%20of%20Preparation%20and%20Going%20Concern) The financial information is prepared in accordance with HKAS 34, with management affirming the going concern basis despite current liabilities exceeding current assets by HK$4.786 billion, supported by operating cash flows and unutilized credit facilities - As of June 30, 2023, the Group's current liabilities exceeded its current assets by **HK$4.786 billion**[46](index=46&type=chunk) - Management believes that based on the Group's operating cash flows, refinancing capabilities, and **HK$20.719 billion** in unutilized credit facilities, preparing the financial information on a going concern basis is appropriate[46](index=46&type=chunk) [Segment Information](index=22&type=section&id=Segment%20Information) The Group's operations are assessed by product, comprising HKT, Media Business (OTT and Free TV), and Other Businesses, with HKT contributing the majority of revenue and EBITDA, and Media Business showing the highest EBITDA growth in H1 2023 Revenue and EBITDA by Business Segment (H1 2023) | Business Segment (HK$ Million) | Total Revenue | EBITDA | | :--- | :--- | :--- | | HKT | 16,400 | 6,009 | | Media Business | 1,361 | 248 | | Other Businesses | 369 | (294) | | Elimination Items | (1,280) | (332) | | **Consolidated** | **16,850** | **5,631** | [Dividends](index=25&type=section&id=Dividends) The Board declared a 2023 interim dividend of HK$9.77 cents per share, totaling approximately HK$756 million, in addition to the HK$2.201 billion final dividend for 2022 paid during the reporting period Dividend Details (HK$ Million) | Item | Amount | | :--- | :--- | | Declared 2023 Interim Dividend | 756 | | Paid 2022 Final Dividend | 2,201 |

Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the Asia-Pacific region [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Market Expansion - The company successfully entered two new markets in Europe, contributing to a 20% increase in international sales [4]. - A new distribution center was opened in South America to support regional growth [5]. - Strategic partnerships were formed with local retailers in Southeast Asia to enhance market penetration [6]. Product Development - Launched three new products in the tech segment, which accounted for 25% of total revenue [7]. - R&D spending increased by 10% to accelerate innovation and product differentiation [8]. - Customer feedback on the new product line has been overwhelmingly positive, with a 90% satisfaction rate [9]. Operational Efficiency - Implemented a new supply chain management system, reducing delivery times by 15% [10]. - Automation initiatives in manufacturing led to a 5% reduction in production costs [11]. - Employee training programs were expanded, resulting in a 10% increase in productivity [12]. Sustainability Initiatives - Achieved a 30% reduction in carbon emissions through the adoption of renewable energy sources [13]. - Launched a recycling program that has successfully diverted 50% of waste from landfills [14]. - Committed to achieving net-zero emissions by 2030, with interim targets set for 2025 [15]. Corporate Governance - Appointed two new independent directors to the board, enhancing oversight and strategic guidance [16]. - Strengthened compliance measures to ensure adherence to global regulatory standards [17]. - Conducted an annual audit with no material findings, reflecting strong internal controls [18]. Customer Engagement - Introduced a loyalty program that has increased customer retention by 15% [19]. - Enhanced digital platforms to improve user experience, resulting in a 20% increase in online sales [20]. - Customer service response times improved by 25% due to the implementation of AI-driven support tools [21].

Revenue Growth - Viu's paid user base increased by 31%, leading to a 23% rise in OTT video revenue, marking the first EBITDA profit for the OTT business [5]. - The revenue for Viu increased by 22% to $100 million, marking its first positive EBITDA [8]. - The company reported a significant increase in revenue, achieving a total of HKD 12 billion for the first half of 2022, representing a year-on-year growth of 15% [6]. - Revenue for the first half of 2022 reached HKD 10 billion, marking a 15% increase compared to the same period last year [15]. - Total revenue increased by 1% to HKD 18.256 billion, with Hong Kong Telecom's revenue rising by 3% to HKD 16.157 billion [19]. - OTT business revenue surged by 22% to HKD 786 million, while free TV and related business revenue rose by 52% to HKD 388 million [19]. - The company reported a significant increase in revenue, achieving a mid-year report for 2022 with a notable growth rate of 15% compared to the previous year [155]. - Revenue for the first half of 2022 reached $1.2 billion, reflecting a 15% increase compared to the same period last year [158]. User Growth and Engagement - Viu recorded a significant 31% growth in paid users, reaching 9.1 million, and a 23% increase in monthly active users to 60.7 million [8]. - The number of monthly active users for Viu reached 60.7 million, with paid users increasing to 9.1 million as of June 30, 2022 [20]. - User data showed a total of 3 million subscribers, with a 10% increase compared to the previous year, indicating strong customer acquisition efforts [6]. - The company reported a significant increase in user data, with a total of 500 million active users, representing a growth of 25% year-over-year [15]. - The company reported a significant increase in user data, with a total of 1.5 million new subscribers added in the last quarter, representing a 20% growth year-over-year [16]. Strategic Partnerships and Collaborations - Strategic partnership with Lenovo to establish PCCW Lenovo Technology Solutions Limited, focusing on technology solutions in the Asia-Pacific region [5]. - Collaboration with The Sandbox to support Web3 development, becoming the first Hong Kong company in the metaverse [6]. - The partnership with Lenovo aims to accelerate business expansion in the Asia-Pacific region for the enterprise solutions segment [21]. - The company is exploring opportunities in the metaverse through a partnership with The Sandbox, integrating communications, media, and technology [10]. Technology and Service Expansion - The launch of the first 2500M FTTH broadband service in Hong Kong, integrating broadband, Wi-Fi, TV, and Smart Living [5]. - Comprehensive low, medium, and high-frequency 5G spectrum utilized to provide extensive network services for the East Rail Line [5]. - The number of 5G postpaid customers rose to 26% of the postpaid customer base, with 5G services extended to all MTR lines [9]. - The company has launched a new 5G service, with initial uptake exceeding 100,000 subscribers within the first month [6]. - The DrGo telemedicine platform expanded its services to pediatrics and mental health [9]. - The company is planning to expand its market presence in Southeast Asia, targeting a 20% increase in market share over the next two years [6]. Financial Performance and Outlook - The company provided an optimistic outlook for the next quarter, projecting a revenue growth of 12% driven by new product launches and market expansion strategies [6]. - Future guidance includes a focus on sustainable practices, with a goal to reduce carbon emissions by 30% by 2025 [6]. - The company reported a consolidated loss attributable to equity holders of HKD 88 million during the period [19]. - The company has outlined a future outlook with a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies [16]. - The board has approved a new strategy to diversify revenue streams, aiming for a 15% contribution from new business lines by the end of 2023 [16]. Corporate Social Responsibility - The company is committed to corporate citizenship, mobilizing resources to support the community during the pandemic [6]. - Commitment to corporate social responsibility by mobilizing resources to support the community during the pandemic [149]. - The company is committed to sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2025 [157]. Operational Efficiency and Cost Management - The company aims to improve operational efficiency, targeting a reduction in operational costs by 8% through digital transformation initiatives [6]. - The company aims to enhance operational efficiency, targeting a 5% reduction in operational costs through technology upgrades and process optimization [155]. - Operating expenses have been managed effectively, with a reduction of 5% compared to the previous year, improving overall profitability [158]. Employee and Governance - The company has over 21,200 employees and operates in Hong Kong, mainland China, and other regions [4]. - The group employed over 21,200 employees globally as of June 30, 2022, a slight decrease from 21,500 employees as of June 30, 2021 [184]. - The company is committed to maintaining high levels of corporate governance, emphasizing ethics, transparency, and accountability in all business operations [136].

Business Performance - The core business of PCCW recorded strong performance, with significant growth in revenue from the OTT service Viu, which maintained its leading position in Southeast Asia[8]. - Viu recorded a strong revenue growth in 2021, with EBITDA improvement, and had over 8.4 million paying users, a year-on-year increase of 58%[9]. - Monthly active users of Viu reached 58.6 million, representing a year-on-year increase of 30%[9]. - The telecommunications segment achieved double-digit revenue growth, focusing on large global enterprises, with over 100 clients from the Forbes Global 2000 list[10]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion for the fiscal year, representing a 15% year-over-year growth[35]. - Revenue from continuing operations increased by 7% to HKD 38.654 billion[81]. - OTT business revenue surged by 25% to HKD 1.48 billion[81]. - The company's enterprise solutions business revenue grew by 20% to HKD 4.894 billion for the year ended December 31, 2021[83]. - The company reported a comprehensive profit attributable to equity holders of HKD 1.039 billion for the year[84]. Strategic Initiatives - PCCW successfully acquired additional spectrum in the government auction, enhancing its 5G network coverage and capacity[8]. - The company is actively expanding its IT services in Southeast Asia, focusing on smart city and digital transformation initiatives[7]. - The company aims to assist clients in achieving digital transformation and enhancing operational efficiency through its comprehensive IT solutions[7]. - The company is actively involved in mergers and acquisitions, enhancing its market presence and operational capabilities[32]. - The company is considering strategic acquisitions to enhance its market position, with a budget of $100 million earmarked for potential deals[35]. Digital Transformation and Technology - The digital ecosystem established by Hong Kong Telecom integrates services such as e-commerce, travel, insurance, big data analytics, fintech, and health tech[6]. - The company is focused on enhancing customer interaction and expanding its ecosystem through partnerships with technology providers[1]. - The company is investing in new technology development, allocating $50 million towards R&D initiatives[35]. - The company is focused on building 5G infrastructure and providing reliable broadband services to meet market demands[83]. Financial Overview - The revenue from continuing operations for the year was HKD 38.654 billion, with an EBITDA of HKD 12.309 billion[21]. - The company achieved a net profit attributable to equity holders of HKD 1.039 billion[21]. - The total debt as of December 31, 2021, was HKD 47.006 billion, with a debt-to-asset ratio of 50%[101]. - The company reported a profit attributable to shareholders of HKD 4.808 billion, with basic earnings per share of HKD 0.6349[88]. - The board declared a final cash dividend of HKD 0.2769 per share, resulting in a total annual cash dividend of HKD 0.3705 per share, a 15% increase from 2020[83]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, with experienced members overseeing various committees[34]. - The board consists of 14 members, including 3 executive directors, 5 non-executive directors, and 6 independent non-executive directors, with at least one independent director possessing relevant financial expertise[44]. - The company has established a clear division of roles between the chairman and the group managing director to ensure effective leadership and governance[43]. - The board's responsibilities include considering and approving interim and annual financial reports, as well as dividend amounts according to the adopted policy[43]. Employee Engagement and Corporate Social Responsibility - The company is actively involved in charitable activities, supporting public welfare initiatives in Hong Kong through its charitable foundation[33]. - The company has a corporate responsibility policy that covers areas such as citizen responsibility, equal opportunity, and the protection of company data and assets[39]. - The company has launched a new human resources information system, Connect, to streamline HR processes and improve employee access to information[119]. - The company has implemented a volunteer recognition program to encourage employee participation in community service[122]. Market Expansion and Customer Engagement - The company is actively seeking growth opportunities while monitoring potential adverse factors in a rapidly changing environment[83]. - The company is expanding its business into overseas markets, which increases exposure to multiple and potentially conflicting regulatory environments[115]. - The Club membership rewards program helps attract customers and offers personalized services[120]. - In 2021, the company received over 48,000 customer praises and multiple customer service awards[120]. Risk Management and Compliance - The group has established a clear organizational structure with defined responsibilities and reporting procedures for risk management and internal control[67]. - The internal audit department adopts a risk-based audit approach and reports findings to the board and audit committee regularly[70]. - The company has implemented comprehensive data governance measures, including enhanced data leak protection capabilities and employee training programs[111]. - The company has initiated various business projects aimed at sustainable growth, emphasizing the importance of effective project management to ensure timely and quality deliverables[112]. Awards and Recognition - Viu Thailand won the Best Actor in a Supporting Role and Best Actress in a Supporting Role at the 26th Asian Television Awards[29]. - Viu Indonesia received the Best Millennial Women Brand Choice 2021 for Movie Streaming, highlighting excellent products and services reputation[30]. - Viu Singapore achieved multiple awards at The Loyalty & Engagement Awards 2021, including Gold for Best Use of Influencers and Silver for Best Use of Content Marketing[31]. - Telecom Enterprise Solutions received the Best SuccessFactors Partner Award 2020 from SAP[29].

Financial Performance - The company reported a mid-year revenue of HKD 6.5 billion, reflecting a year-on-year increase of 12%[13]. - The company reported a total revenue for the six months ended June 30, 2021, of HKD 18,355 million, compared to HKD 15,643 million for the same period in 2020, representing a growth of 17.3%[62]. - The net profit for the first half of 2021 was HKD 376 million, up from HKD 254 million in the first half of 2020, indicating a growth of approximately 47.9%[49]. - The company reported a significant increase in user data, with a total of 500 million active users, representing a growth of 25% year-over-year[16]. - The company anticipates achieving break-even for its Viu OTT streaming service in the short term, driven by data analytics and engaging content[11]. - The company has set a performance guidance of 20% revenue growth for the upcoming fiscal year[16]. - The company reported a significant contribution to the Hong Kong insurance industry, with key executives recognized for their achievements, including Mr. Xie receiving the Gold Bauhinia Star in 2001[14]. User Growth and Engagement - Viu OTT service recorded significant growth in monthly active users, paid users, and revenue, with a total of 49.4 million monthly active users and 7 million paid users, representing increases of 37% and 62% year-on-year respectively[7]. - User data showed a growth in active subscribers, reaching 3.2 million, which is a 15% increase compared to the previous year[13]. - Viu's monthly active users reached 49.4 million, a 37% increase year-over-year, while paid users grew to 7 million, up 62%[138]. - ViuTV's total revenue nearly doubled year-over-year, significantly exceeding budget expectations[138]. Business Expansion and Strategy - The company is actively preparing to open a golf resort in Thailand in the third quarter, while the operation of the Niseko Park Hyatt Hotel has been adjusted due to the pandemic[5]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2023[16]. - The company is considering strategic acquisitions to bolster its service offerings, with a budget of HKD 2 billion allocated for potential deals[13]. - The company is committed to exploring new digital service revenue channels while enhancing market penetration through its integrated service offerings[11]. - The company plans to divest its data center business in Hong Kong and Malaysia for $750 million, with proceeds aimed at strategic investments and shareholder value creation[11]. Operational Efficiency and Cost Management - The company reported a 5% increase in operating margin, attributed to cost optimization measures implemented in the last quarter[13]. - For the six months ended June 30, 2021, the operating costs decreased by 8% to HKD 29.32 billion due to various cost control measures implemented in response to uncertain operational and economic environments[38]. - The company aims to reduce operational costs by 5% through efficiency improvements and technology upgrades[144]. Governance and Management - The company has a strong focus on corporate governance, with various committees in place, including the remuneration and nomination committees[15]. - The management team has a robust educational background, with degrees from prestigious institutions such as Cornell University and the Australian National University[15]. - The board includes members with diverse backgrounds, such as Mr. Mai, who has held senior positions in China Unicom and has a wealth of experience in the telecommunications industry[15]. - The company emphasizes the importance of regulatory compliance and has members with experience in legal and arbitration matters, ensuring sound governance practices[15]. Market Challenges and Future Outlook - The company continues to face challenges from increased competition in the media and telecommunications markets, as well as rising content costs and changing consumer habits[136]. - Future performance may be impacted by regulatory developments, external capital acquisition capabilities, and macroeconomic uncertainties[136]. - The overall economic recovery in Hong Kong is expected to align with government forecasts, although uncertainties remain regarding the reopening of borders with mainland China[5]. Investments and R&D - The company is investing HKD 1 billion in technology research and development to enhance service delivery and customer experience[13]. - The company is investing HKD 500 million in new technology development aimed at improving network efficiency and customer experience[144]. - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[147].

P U 電訊盈科 , ® 2020年年報 股份代號：0008 目錄 | --- | --- | |-------|----------------------| | | | | 1 | 企業簡介 | | 3 | 主席報告書 | | 4 | 集團董事總經理報告書 | | 8 | 集團相關數字概覽 | | | 10 2020 年大事回顧 | | 12 | 獎項 | | 15 | 董事會 | | 21 | 企業管治報告 | | 38 | 管理層的討論及分析 | | 51 | 財務資料 | | 236 | 投資者關係 | 企業簡介 電訊盈科有限公司是一家以香港為總部的環球公司，在電訊、媒體、資訊科技服務 方案、物業發展及投資以及其他業務均持有權益。 本公司持有香港電訊信託與香港電訊有限公司大部分股權。香港電訊是香港首屈 一指的電訊服務供應商及領先的固網、寬頻、流動通訊及媒體娛樂服務營運商。 香港電訊提供端對端整合方案，以新興科技協助企業進行數碼轉型。香港電訊並 建立了一個數碼生態圈，將集團的會員計劃、電子商務、旅遊、保險、金融科技及 健康科技等服務結合，深化公司與客戶的關係。 電訊盈科擁有一個全面綜合的香港多媒體及娛 ...

Financial Performance - The company recorded a stable performance for the six months ending June 30, 2020, despite the severe impact of the COVID-19 pandemic on global social and economic activities [4]. - Revenue for the first half of 2020 reached HKD 12 billion, reflecting a 5% increase compared to the same period last year [9]. - The company reported a significant increase in revenue for the first half of 2020, with a year-on-year growth of 15% [137]. - The company reported a consolidated loss attributable to equity holders of HKD 0.584 billion, compared to a loss of HKD 0.263 billion in the same period last year [139]. - The net profit for the first half of 2020 was HKD 254 million, a significant decrease of 76.9% from HKD 1,099 million in the same period of 2019 [42]. - The company has set a performance guidance of 8-12% revenue growth for the upcoming fiscal year [133]. - The company provided an optimistic outlook for the next quarter, projecting a revenue growth of 10% to 12% [137]. User Engagement and Viewership - Now TV's viewership increased by double digits during the first half of the year, driven by free access to selected content and a rise in home entertainment consumption [7]. - ViuTV's viewership more than doubled in prime time during the first six months, reflecting the popularity of self-produced content and increased advertising revenue [7]. - Viu achieved 36.1 million monthly active users across 16 markets, a 21% increase year-on-year, with a 23% growth in viewing sessions, totaling 3.2 billion views in the first half of 2020 [7]. - Now TV experienced an increase in viewership for entertainment and news content, while ViuTV launched popular series, leading to higher ratings during the pandemic [128]. - Viu service saw monthly active users increase by 21% to 36.1 million and paid subscribers rise by 119% to 4.3 million [147]. 5G Network and Technology Development - The company launched its 5G mobile network on April 1, 2020, and is expanding its coverage to provide a unique mobile communication experience in Hong Kong [4]. - Hong Kong Telecom became the first local mobile operator to launch a true 5G network on April 1, leveraging a large spectrum across various bands [8]. - The company is actively promoting the adoption of 5G among consumers and enterprises, aiming to develop new revenue sources in digital and smart living services [8]. - The company aims to drive consumer and enterprise adoption of 5G technology, exploring new revenue streams in digital and smart living services [132]. - The company is investing HKD 500 million in research and development for new technologies aimed at enhancing customer experience [133]. Strategic Partnerships and Acquisitions - The company established a strategic outsourcing partnership with StarHub in Singapore to enhance its IT services and support digital transformation [7]. - A strategic acquisition of a local telecom provider is in progress, expected to enhance service offerings and customer base by 30% [135]. - A strategic acquisition of a local tech firm is anticipated to be finalized by Q3 2020, which is expected to enhance the company's service offerings [133]. Market Expansion and Future Outlook - The company is focusing on market expansion, particularly in the Asia-Pacific region, aiming for a 15% increase in market share by the end of 2021 [9]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2025 [10]. - The company plans to continue evaluating and expanding data center capacity in Hong Kong and beyond to meet growing customer demand [151]. - The company is actively expanding regional business and launching new services and products as part of its effective business continuity plan [130]. Operational Challenges and Economic Impact - The pandemic has severely impacted the restaurant and hotel industry, with low occupancy rates reported at the hotel in Hokkaido since February [8]. - The ongoing pandemic and economic uncertainties are anticipated to continue affecting the company's performance in the near term [17]. - The company acknowledges that the pandemic will continue to pose severe challenges and uncertainties in the short term, impacting livelihoods and business prospects [128]. Corporate Governance and Shareholder Value - The board has approved a dividend payout of HKD 0.50 per share, reflecting a commitment to returning value to shareholders [135]. - The company declared an interim cash dividend of HKD 0.0918 per share for the six months ending June 30, 2020, unchanged from the previous year [41]. - The company plans to distribute special interim dividends, contingent on certain conditions, potentially increasing the number of shares distributed to shareholders [122]. Digital Ecosystem and Service Integration - The group is focused on enhancing its digital ecosystem, integrating services such as e-commerce, travel, insurance, fintech, and health tech [8]. - The group launched the telemedicine platform DrGo in July, connecting users with doctors for medical consultations via video [8]. - The company is committed to using its expertise in technology and communications to help Hong Kong citizens and businesses overcome current adversities [128].