香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲 明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 1 PCCW Limited （於香港註冊成立的有限公司 ) （股份代號：0008 ) 截至 2024 年 6 月 30 日止六個月的 中期業績公告 電訊盈科有限公司（「電訊盈科」或「本公司」）董事（「董事」）謹此宣佈本公司及其附屬公司 （統稱「本集團」）截至 2024 年 6 月 30 日止六個月的未經審核綜合業績。本簡明綜合中期財務資料 雖未經審核，惟已經本公司的審核委員會審閲，並按照香港會計師公會頒佈的《香港審閲委聘準則》 2410 由實體獨立核數師執行中期財務資料審閲工作的準則由本公司的獨立核數師羅兵咸永道會計師 事務所審閲。 • Viu 的付費用戶達 1,170 萬名，並增添超過 110 部新作品 • ViuTV 的數碼會員數目達 320 萬名，並管理 65 位藝人 • 收益增加百分之五至港幣176.98億元 • 香港電訊收益（未計流動通訊產品銷售）增加百分之三至港幣156.83億元 • OTT ...

Investment Rating - The report does not explicitly mention an investment rating for the company [1][2][3] Core Viewpoints - The company, PCCW, has experienced significant market value erosion since the dot-com bubble burst, with its market cap dropping from a peak of HKD 580 billion to around HKD 30 billion [2] - PCCW's revenue growth has been stagnant, with a 10-year CAGR of only 1% from 2014 to 2023 [6] - The company has undergone significant business restructuring, focusing primarily on telecom and media, with telecom contributing 94% of revenue in 2023 [11] - PCCW's core telecom business, Hong Kong Telecom, is heavily reliant on fixed-line services, which are in a mature-to-decline phase, while mobile services are still in the early stages of 5G adoption [16][25][28] - The company has a strong dividend history, paying out HKD 27 billion in dividends over the past 5 years, representing 65% of its free cash flow [37][38] Business Overview - PCCW was founded in 1993 and became a major player in Hong Kong's telecom market after acquiring Hong Kong Telecom in 2000 for USD 35.9 billion [2] - The company's major shareholders include Li Ka-shing's son, Richard Li, who holds 24.92%, and China Unicom, which holds 18.41% [3][5] - PCCW's business segments have been streamlined, with telecom and media now accounting for 94% and 9% of revenue, respectively [11] - The company has divested several non-core assets, including Now TV and its property business, to focus on its core telecom operations [11] Financial Performance - PCCW's revenue in 2023 was HKD 36.3 billion, with Hong Kong Telecom contributing HKD 34.3 billion [15] - The company's EBITDA improved to HKD 12.8 billion in 2023, with an EBITDA margin of 35.3%, the highest in 5 years [33] - Capital expenditures have decreased significantly, from HKD 5 billion in 2019 to HKD 2.3 billion in 2023, contributing to improved free cash flow [34][36] - Free cash flow increased from HKD 6.1 billion in 2019 to HKD 11 billion in 2023 [36] Industry Analysis - Hong Kong's telecom market is highly competitive, with 28 licensed fixed-line operators and 4 major mobile operators [22][25] - Fixed-line penetration in Hong Kong remains high at 66.8%, compared to 13% in mainland China and 29% in the US [20] - The mobile market is saturated, with a penetration rate of 282%, and 5G adoption is still in its early stages, with 68.2% of mobile users on 5G as of March 2023 [26][28] - Hong Kong Telecom's mobile business is heavily reliant on hardware sales, with 26% of its mobile revenue coming from device sales in 2023 [30] Dividend and Shareholder Returns - PCCW has a strong track record of paying dividends, with HKD 27 billion paid out over the past 5 years [37] - The company's dividend payout ratio is 65% of its free cash flow, indicating a strong commitment to returning capital to shareholders [37] - For long-term investors, dividends have been a significant source of returns, with an annualized return of 15.75% from 2014 to 2023, assuming reinvestment of dividends [38]

Viu Platform Performance - Viu's monthly active users reached 62.4 million by the end of 2023[4] - Viu's subscription revenue grew by 32% and total revenue increased by 27% in 2023[6] - Viu's monthly active users reached 62.4 million, with overall revenue increasing by 27% year-over-year, driven by a 32% rise in subscription revenue and a 15% increase in advertising revenue[9] - Viu's paid subscription revenue grew by 32%, with 1.34 million paying subscribers, a 10% increase, and monthly active users (MAU) reached 6.24 million[20] - Viu's advertising revenue increased by 15% YoY, with monthly active users reaching 62.4 million as of December 31, 2023[113] - Viu's OTT business EBITDA surged by 233% to HKD 592 million, with margin increasing from 9% to 24%[113] - Viu's paying subscriber base grew by 10% to 13.4 million, with subscription revenue increasing by 32% year-on-year[112] 5G and Broadband Network Expansion - The company's 5G customer penetration rate in the postpaid customer base expanded to 41%[6] - The company's 10G broadband network now covers 2.4 million households, with a significant increase in 2500M service adoption[6] - The 5G customer base reached nearly 1.4 million by the end of 2023, accounting for 41% of postpaid customers and over half of csl and 1O1O customers[13] - The company's 2500M broadband service saw a significant increase in user numbers, with service plan fees rising by HKD 98, and the company is prepared to offer up to 10G high-speed services to 2.4 million households[13] - Hong Kong Telecom's 5G customer base grew to 1.4 million, a 32% increase, and FTTH (Fiber-to-the-Home) customers reached 1.01 million, a 4% increase[21] - Mobile communication service revenue grew by 5% to HKD 8.348 billion, driven by roaming recovery and strong 5G adoption, with 5G penetration reaching 41% of postpaid customers by the end of 2023[107] Revenue and Financial Performance - The company's revenue in mainland China grew significantly by 32%[6] - The company's outbound roaming revenue in the second half of 2023 recovered to 95% of pre-pandemic levels[6] - The company's OTT business EBITDA grew more than twofold[6] - The company's roaming revenue surged by 176% in 2023, with roaming user numbers nearly doubling, and December's roaming revenue exceeding pre-pandemic levels[12] - Hong Kong Telecom's total revenue reached HKD 31.37 billion, a 3% increase, with EBITDA of HKD 13.4 billion, also a 3% increase[21] - Total revenue increased by 1% to HKD 36.347 billion, with Hong Kong Telecom's revenue rising by 1% to HKD 34.330 billion and OTT business revenue growing by 22% to HKD 2.452 billion[97] - EBITDA increased by 4% to HKD 12.831 billion, with Hong Kong Telecom's EBITDA rising by 3% to HKD 13.400 billion and OTT business EBITDA surging by 233% to HKD 592 million[97] - The company's overall revenue for 2023 was HKD 36.347 billion, with EBITDA of HKD 12.831 billion[19] - The company's loss from continuing operations attributable to equity holders improved to HKD 471 million[97] - The final dividend per ordinary share is HKD 28.48 cents, bringing the full-year dividend to HKD 38.25 cents per ordinary share[97] - The board declared a final dividend of HKD 28.48 cents per share, bringing the full-year dividend to HKD 38.25 cents per share[100] - Adjusted funds flow for 2023 rose by 3% to HKD 5.798 billion, with a full-year distribution of HKD 0.7649 per stapled unit[110] Media and Entertainment Business - The company's MakeALive online and live events expanded to five Asian markets[6] - The company's ViuTV maintained advertising revenue despite a weakening TV advertising market[6] - The company's Viu platform serves 16 markets across Asia, the Middle East, and South Africa[4] - ViuTV's online platform registered members grew by 9% to over 3 million, supported by popular shows like "Legal and Love" and "Office Romance"[10] - The company's MakeALive service expanded to five Asian markets, showcasing its capability to host online and ticketed live events for its artists and other performers[11] - The company's media business saw OTT revenue of HKD 2.452 billion, a 22% increase, and free TV and related business revenue of HKD 952 million, a 5% increase[20] - Free TV and related business revenue increased by 5% to HKD 952 million, with EBITDA nearly doubling to HKD 190 million[99] - ViuTV achieved stable ratings and attracted sponsors from various industries with its diverse entertainment programs[99] - The company expanded into new entertainment formats such as movies, stage plays, and overseas events, contributing to stable growth in event and artist management businesses[99] - Free TV and related business revenue grew by 5% to HKD 952 million, with EBITDA increasing by 96% to HKD 190 million[114] - ViuTV's digital platform registered members grew by 9% YoY to over 3 million[115] - ViuTV's EBITDA for the year ended December 31, 2023, increased by 96% to HKD 190 million, with margin rising from 11% to 20%[116] Corporate Governance and Leadership - Mr. Tse, aged 86, serves as a non-executive director of PCCW and has extensive experience in the insurance industry across Asia and globally[27] - Mr. Tang, aged 49, was appointed as a non-executive director and vice chairman of PCCW in August 2023, and also holds senior positions in China United Network Communications Group[27] - Ms. Meng, aged 51, was appointed as a non-executive director of PCCW in December 2021 and serves as the chairman and president of China Unicom International[28] - Ms. Wang, aged 53, was appointed as a non-executive director of PCCW in December 2021 and serves as the general manager of the finance department at China United Network Communications Group[28] - Mr. Wei, aged 53, has been a non-executive director of PCCW since May 2012 and has over 20 years of experience in investment and operational management in China[28] - Vision Deal HK Acquisition Corp. is led by Mr. Wei as Executive Director and Chairman, who also chairs the Nomination Committee[30] - Mr. Wei serves as a Non-Executive Director for Polestar Automotive Holding UK PLC and JNBY Co., Ltd[30] - Mr. Wei was recognized as one of "China's Best CEOs" by FinanceAsia magazine in 2010[30] - Mr. Wei holds a degree in International Business Management from Shanghai International Studies University[30] - Mr. Wei has extensive experience in the banking sector, including roles at HSBC and PricewaterhouseCoopers[30] - Mr. Wei has served as an Independent Non-Executive Director for multiple companies, including 500.com Limited and BlueCity Holdings Limited[30] - Mr. Wei was appointed as an Independent Non-Executive Director for China Chain Store & Franchise Association[30] - Mr. Wei has held positions in various international banking roles, including in Saudi Arabia and the United States[30] - Mr. Wei has been involved in the establishment of the Zhi Li Education Fund in Hong Kong[31] - Mr. Wei has a background in corporate finance and investment banking, with experience at PricewaterhouseCoopers and HSBC[30] Risk Management and Compliance - The company's risk management and internal control systems, including ESG risks, are reviewed at least annually by the audit committee[67] - The company has established a robust risk management culture, ensuring operational units identify and manage risks with corresponding controls[68] - The company promotes a strong compliance and risk management culture across the organization, adhering to ethical standards through comprehensive policies and processes[69] - The company has established a comprehensive anti-bribery and corruption policy and procedure manual, ensuring integrity and reducing corruption risks[70] - The company maintains strict confidentiality and efficient handling of insider information, ensuring proper approval before disclosure[70] - The company has a three-line defense model for risk management, with clear responsibilities for risk identification, oversight, and independent assurance[74] - The company’s risk management framework includes regular reviews by the Risk Management, Monitoring, and Compliance Committee, reporting significant risks to the Board[75] - The Group Internal Audit Department adopts a risk-based audit approach, covering major risks across operations and reporting findings to senior management and the Audit Committee[76] - The company ensures asset protection and compliance with accounting standards through established policies and controls[72] - The company’s risk management process combines top-down and bottom-up approaches for comprehensive risk identification and mitigation[74] - The Group Risk Management and Compliance Department oversees the enterprise risk management framework and regularly reports to the Audit Committee[75] - The company’s internal audit function is independent of management, reporting directly to the Board and the Audit Committee[76] - The company’s senior management, with the assistance of risk management committees, designs and monitors the enterprise risk management and internal control systems[76] - The company has adopted the principles of ISO 31000:2018 for managing business and operational risks, integrating risk management into daily operations[78] - The company conducts annual certifications to ensure the effectiveness of its enterprise risk management and internal control systems[78] - In 2023, the company increased training sessions and risk workshops, unified risk reporting terminology, and enhanced communication with authorized directors regarding risk management[82] - The company's internal audit function focuses on IT security, data privacy, third-party management, and regulatory compliance[82] - The company's risk management framework is considered adequate and effective, with sufficient resources and staff qualifications[83] - External auditors also assess the adequacy and effectiveness of the company's risk management and internal controls as part of their statutory audit[83] - The company continuously improves its risk management capabilities, particularly in managing environmental, social, and governance (ESG) risks[84] - The company maintains a risk register to track and monitor risk mitigation actions across operational units[81] - The company's risk management process includes risk identification, analysis, evaluation, and the implementation of mitigation plans[80] - The company's risk management and compliance department regularly reports to the audit committee and other subcommittees on risk assessment progress[77] - The company has implemented measures to combat cyber threats, including subscribing to attack surface management and continuous automated red teaming solutions, as well as bounty hunting platforms for in-depth threat assessments[85] - The company ensures strict compliance with data privacy laws and IT security policies, conducting continuous reviews of endpoint security and network protection to maintain high information security standards[85] - The company is adopting an enhanced technology evaluation framework for AI to address potential vulnerabilities and ensure effective governance and supervision in meeting regulatory requirements and managing technology risks[86] - The company has launched various business projects to achieve sustainable growth and create long-term value for stakeholders, with ongoing risk management support to ensure timely and high-quality project delivery[86] - The company has established training, performance management, and recognition programs to retain and develop talent, supported by the implementation of a human resources system and succession planning to mitigate the impact of key personnel loss[87] - The company has adopted business continuity management policies and corporate incident response plans to ensure prompt handling of major incidents and maintain normal business operations[87] - The company leverages its strengths, such as product functionality, coverage, timely product launches, and market experience, to maintain competitiveness in a market increasingly driven by innovations like generative AI[89] - The company is expanding its diversified business portfolio into industries like fintech and health tech, while monitoring political and macroeconomic changes to mitigate potential financial and strategic risks[89] - The company is exploring strategic business opportunities through internal growth and potential mergers or strategic investments in the telecom and technology markets[89] Sustainability and Corporate Social Responsibility - The company has integrated environmental elements into sustainable business operations, including electric vehicle charging solutions through a joint venture with CLP Holdings[132] - The company has installed solar panel systems on four machine buildings and plans to install more to promote renewable energy[133] - The company has adopted paperless systems and sustainable materials in its operations, including PEFC-certified paper and eco-friendly materials in employee canteens[134] - The company has signed sustainability-linked loans totaling over USD 3.9 billion with financial institutions as of December 31, 2023[134] - The company has received multiple awards for its sustainability efforts, including being ranked in the top 67% of global telecommunications peers by MSCI ESG Ratings[135] - The company was awarded the "Best ESG Report Award - Mid Cap" and "ESG Best Performance Award - Mid Cap" at the BDO ESG Awards[136] - The company has established a comprehensive employee performance evaluation system and reward program to foster a performance-based culture[137] - The company has launched a membership rewards program called The Club, which helps attract customers and provides opportunities for personalized services[138] - The company received over 80 customer service awards in 2023 and over 22,000 customer praises[139] - The company maintains partnerships with over 5,000 global suppliers and has implemented responsible procurement practices[140] - The company has obtained ISO 9001:2015 certification for its quality management system since 2018[141] - The company provided over HKD 17 million in donations and materials to support the Hong Kong community[142] - The company has implemented a "Volunteer Recognition Program" to provide volunteer leave for employees participating in community services[143] - The company adheres to multiple laws and regulations, including the Telecommunications Ordinance and the Personal Data (Privacy) Ordinance[144] Shareholder and Dividend Information - The final dividend per ordinary share is HKD 28.48 cents, bringing the full-year dividend to HKD 38.25 cents per ordinary share[97] - The board declared a final dividend of HKD 28.48 cents per share, bringing the full-year dividend to HKD 38.25 cents per share[100] - Proposed final dividend of HKD 28.48 cents per ordinary share for the year ended December 31, 2023, subject to approval at the Annual General Meeting on May 30, 2024[127] - Interim dividend of HKD 9.77 cents per ordinary share paid in September 2023 for the six months ended June 30, 2023[127] - The company paid an interim dividend of HKD 9.77 cents per ordinary share in September 2023, totaling approximately HKD 756 million[151] - The board proposed a final dividend of HKD 28.48 cents per ordinary share for the year ended December 31, 2023, subject to shareholder approval[151] Legal and Regulatory Compliance - The company's compliance with the Competition Ordinance could result in a maximum fine of 10% of annual turnover in Hong Kong for up to three years for serious anti-competitive behavior[148] - Violations of the Telecommunications Ordinance could result in a maximum fine of HKD 1 million or a higher amount as determined by the court[145] - Violations of the Broadcasting Ordinance could result in a maximum fine of HKD 1 million, with the possibility of license revocation in severe cases[146] - Violations of the Trade Descriptions Ordinance could result in a maximum fine of HKD 500,000 and imprisonment for up to five years[147] - The company has appointed a Group Data Protection Officer to oversee all activities related to data privacy compliance[149] - The company will publish a separate 2023 Environmental, Social, and Governance report in accordance with the ESG Reporting Guide[150] Share and Option Plans - The total number of shares that can be issued under the 2014 Share Option Scheme is 728,229,465, representing approximately 9.41% of the issued shares as of the annual report date[175] - The company's 2014 share option plan has not granted any options since its adoption until December 31, 2023, with the number of authorized options remaining at 728,229,465 as of both January 1, 2023, and December 31, 2023[177] - The total number of shares available for issuance under the PCCW Subscription Plan is 71,254,636, representing approximately 0.92% of the issued shares as of the annual report date[179] - The PCCW Share Award Plans have been extended for 10 years, effective from November 15, 2022, and will expire on November 14, 2032[182] - Total unvested shares as of December 31, 2023, amounted to 6,391,875[184] - Total shares granted during the year were 4,554,458[184] - Total shares forfeited or lapsed during the year were 854,626[184] - Total shares vested during the year were 4,769,362[184] - The highest number of shares granted to a single individual (Xu Hanqing) was 1,123,822 on August 4, 2023[184] - The total number of shares granted to the top five highest-paid individuals was 442,326[184] - The total number of shares granted to service providers was 1,162,304[184] - The total number of shares granted to other recipients was 531,004[184] - The fair value of shares granted on August 4, 2023, was HKD 3.92 per share[184] - The fair value of shares granted on May 30, 2023, was HKD 4.02 per share[184] - Total unvested share awards as of December 31, 2023, amounted to 2,137,481 units[185] - Total share awards granted during the year were 1,473,141 units[185] - Total share awards forfeited or lapsed during the year were 349,055 units[185] - Total share awards vested during the year were 1,488,259 units[185] - The fair value of share awards granted in 2023 ranged from HKD 9.05 to HKD 10.18 per unit[185] - The highest number of share awards granted to a single participant in 2023 was 262,563 units[185] - The total number of share awards granted to service providers in 2023 was 224,336 units[185

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].