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].

Financial Performance - For the year ended December 31, 2019, PCCW recorded stable performance despite economic challenges, with a strong operational performance from Hong Kong Telecommunications and continued expansion in media and enterprise services[7]. - The group reported a total revenue of HKD 37.521 billion and an EBITDA of HKD 12.381 billion for the year[19]. - The net profit attributable to equity holders was HKD 0.681 billion, reflecting the company's profitability[19]. - Total revenue decreased by 3% to HKD 37.521 billion, while revenue excluding mobile communication product sales increased by 3% to HKD 34.121 billion[82]. - Consolidated EBITDA increased by 1% to HKD 12.381 billion, with net profit attributable to equity holders at HKD 0.681 billion[82]. - 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]. - The company reported a significant increase in user data, with a total of 230 million active users, representing a growth of 15% year-over-year[40]. - The company reported a net profit margin of 12%, which is an improvement from 10% in the previous fiscal year[36]. Telecommunications and Technology - Hong Kong Telecommunications successfully acquired a significant amount of 5G mobile communication spectrum in a government auction, with plans to launch 5G services in April 2020[7]. - The company plans to launch 5G mobile communication networks and services in 2020, enhancing customer experience and creating new business opportunities[19]. - The telecommunications segment recorded stable operational performance in 2019, with adjusted cash flow showing steady growth despite a challenging economic environment[11]. - The company aims to explore enterprise market applications for 5G technology, leveraging its high-speed, massive connectivity, and ultra-low latency capabilities[11]. - The company is committed to seeking development opportunities in regional markets to achieve sustainable growth[7]. Media and Entertainment - The OTT service Viu had over 41 million monthly active users by the end of 2019, operating in 17 markets[7]. - Now TV successfully acquired exclusive broadcasting rights for the UEFA Euro 2020™ in Hong Kong, expected to drive subscriber growth and advertising revenue[8]. - Viu's monthly active users increased significantly from 31 million last year to 41 million by the end of 2019, with total viewing hours rising by 69% to 5.7 billion[8]. - The company aims to expand its media and enterprise solutions business in Southeast Asia, focusing on growth opportunities[19]. - The media business revenue increased by 1% to HKD 4.015 billion, with OTT revenue up 18% to HKD 1.071 billion and free TV revenue up 27% to HKD 0.259 billion[82]. Real Estate and Development - The residential project in Niseko, Japan, saw over 90% of units sold, with expectations to set new property price records in the area[7]. - The residential units at the Park Hyatt Niseko hotel have sold 90% of their units, with remaining units reserved for future development projects[11]. - The total revenue for the year ended December 31, 2019, was HKD 10.15 billion, a 238% increase from HKD 3 billion in 2018, primarily due to the sale of properties in Japan[98]. Corporate Governance and Management - The company emphasizes its commitment to corporate governance with a structured board and various committees, including the remuneration and nomination committees[37]. - The board consists of 15 members, including 4 executive directors, 5 non-executive directors, and 6 independent non-executive directors, ensuring at least one independent director has relevant financial expertise[45]. - The company has a strong management team with extensive experience in the telecommunications industry, including Mr. Li, who has been in the industry for many years[37]. - The company has established a robust succession plan and training programs to develop talent and support business growth[132]. - The company has implemented a whistleblowing policy to allow employees and stakeholders to report any misconduct, ensuring transparent and prompt investigations[74]. Risk Management and Compliance - The company has established a clear organizational structure for risk management and internal control, ensuring that assets are protected and compliance with relevant regulations is maintained[68]. - The risk management framework follows a "three lines of defense" model, with the first line responsible for identifying and managing risks on a daily basis[70]. - The company emphasizes continuous improvement in the monitoring environment and implements risk reduction measures as opportunities arise[70]. - The company has implemented risk management measures to mitigate market risks associated with foreign currency and interest rates[110]. - The company has established a comprehensive data governance approach to protect sensitive customer data and mitigate operational disruptions from cyberattacks[121]. Employee and Community Engagement - The company has established performance bonus and reward plans to incentivize employees based on overall performance metrics[113]. - The corporate volunteer team contributed over 10,000 hours of volunteer service in 2018, receiving multiple awards for their community contributions[136]. - The company actively supports the community through various programs aimed at assisting seniors, students, and individuals with disabilities[135]. - The company has received the "Caring Company" logo for over 15 consecutive years, recognizing its commitment to community care[136]. - In 2019, the company received over 180 customer service awards, including recognition from various associations for its high-quality customer service[134]. Strategic Acquisitions and Partnerships - The acquisition of HCL Insys Pte. Ltd. is expected to enhance the company's IT service capabilities in Southeast Asia, providing end-to-end IT services[10]. - The company completed the acquisition of HCL Insys to promote growth in Southeast Asia[26]. - The company has been actively involved in mergers and acquisitions to expand its market presence and capabilities[34]. - The company has established ongoing related transactions with China Unicom Group, which is a major shareholder and related party, involving the purchase and provision of various IT services and products[190]. Shareholder Returns and Dividends - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders, considering various factors including financial condition and operational needs[80]. - Proposed final dividend of HKD 0.23 per share for the year ended December 31, 2019, compared to HKD 0.2233 in 2018, subject to shareholder approval[114]. - The company declared an interim dividend of HKD 0.0918 per ordinary share for 2019, totaling approximately HKD 709 million, compared to HKD 0.0891 per share in 2018[144].

Media Business Performance - The media business recorded growth with Now TV maintaining its leadership position and Viu's active user base increasing from approximately 20 million to 36 million year-on-year[9]. - Viu OTT service achieved over 30 billion minutes of content viewed in the first half of the year, more than double compared to the same period in 2018[9]. - The company plans to introduce 80 original programs in 2019 across various Southeast Asian markets[9]. - ViuTV's new programming schedule has effectively increased viewership during prime time[141]. - ViuTV's revenue increased by 28% to HKD 1.27 billion, despite a challenging advertising environment[28]. - OTT business revenue grew by 12% to HKD 4.41 billion, with Viu's monthly active users reaching 36 million, up from 20 million year-on-year[29]. Telecommunications Segment - The telecommunications segment provided top-tier broadband and mobile services, contributing to stable operational performance[5]. - Hong Kong Telecom recorded stable operational performance in the past six months, with significant contributions from enterprise business[11]. - The consumer broadband business continued to perform steadily in a competitive market[11]. - The company plans to cautiously launch 5G services after the necessary ecosystem is ready next year[11]. - Hong Kong Telecom aims to explore non-traditional revenue opportunities while expanding its audience base in free television services[20]. - The company is closely monitoring global economic uncertainties, particularly due to the US-China trade disputes, which may impact growth strategies[20]. IT Services and Infrastructure - The company is expanding its IT services in Singapore and the Philippines, with a new world-class data center set to launch in Q3 2019[10]. - The IT services segment remains a market leader in Hong Kong, as recognized by Gartner, and has received multiple awards for its digital transformation efforts[10]. - The company aims to enhance operational efficiency to improve profit and cash flow from core businesses[11]. - The new data center, set to open in the second half of 2019, has already secured 63% of its initial capacity in pre-leases from leading global tech and financial institutions[32]. Real Estate Development - The real estate development projects in Japan and Thailand are progressing as planned, with a hotel and residential project in Hokkaido expected to be completed in Q4 2019[5]. - The real estate project in Hokkaido, Japan, has sold or reserved over 90% of residential units[11]. - The office space leasing situation at Jakarta's PCC is stable, with approximately 85% of office space reserved or leased[11]. - The company plans to redevelop a site in Central Hong Kong into luxury residential or commercial use, pending government approval[33]. Financial Performance - Revenue for the first half of 2019 reached HKD 12 billion, marking a 10% increase compared to the same period last year[14]. - The company reported a significant increase in user data, with a total of 10 million new subscribers added in the last quarter, representing a 15% growth year-over-year[14]. - The company reported a mid-year financial performance for 2019, highlighting significant contributions to the insurance sector in Hong Kong[13]. - The company reported a significant increase in revenue, achieving a mid-year report for 2019[16]. - The company reported a total revenue of 19,190 million, reflecting a significant performance in the first half of 2018[57]. Strategic Initiatives and Future Outlook - The company is optimistic about its diversified business and overseas expansion despite a lackluster global economic outlook[5]. - The management emphasized a strategic focus on ensuring business growth through careful expansion strategies tailored for each segment[12]. - The company is actively involved in new product and technology development to drive future growth[12]. - Future guidance indicates a projected revenue growth of 10% for the next quarter, driven by increased demand in digital services[148]. - The company is exploring potential mergers and acquisitions to enhance its service offerings and market presence[148]. Corporate Governance and Leadership - The board includes experienced directors with extensive backgrounds in finance and insurance, enhancing corporate governance[13]. - The company has a strong leadership team with over 30 years of experience in leveraging technology for business transformation[145]. - The management highlighted the importance of collaboration within the team to share insights and drive performance improvements[145]. - The company emphasizes high levels of corporate governance, adhering to the principles of transparency, accountability, and integrity[125]. Community Engagement and Corporate Responsibility - The company is actively engaged in charitable activities, supporting public welfare initiatives in Hong Kong[13]. - The strategic focus on governance and community engagement highlights the company's commitment to sustainable growth and corporate responsibility[146].