HKT(06823)2024-07-25 09:01Financial Performance - The total revenue from mobile communications for the six months ended June 30, 2024, was HKD 4.976 billion, a 5% decrease compared to the previous year[5]. - EBITDA for the six months ended June 30, 2024, increased by 3% to HKD 6.168 billion, maintaining an overall EBITDA margin of 37%[15]. - The total contract value for the first half of 2024 exceeded HKD 2.5 billion, reflecting a 27% growth year-on-year[10]. - The company reported a 3% increase in total telecommunications service revenue to HKD 12.063 billion for the six months ended June 30, 2024[12]. - The company's total revenue (excluding mobile communication product sales) increased by 3% for the six months ending June 30, 2024, with EBITDA growth of 3% due to improved cost efficiency[25]. - Total revenue increased by 2% to HKD 16.669 billion, with total revenue excluding mobile communication product sales rising by 3% to HKD 15.683 billion[51]. - The total revenue for telecommunications services rose by 3% year-on-year to HKD 12.063 billion, with international telecommunications service revenue increasing by 7% to HKD 3.774 billion[58]. - The company reported external revenue from telecommunications services of HKD 11,459 million for 2023, with a total external revenue of HKD 16,669 million[153]. - Total revenue for the six months ended June 30, 2024, was HKD 16,400 million, compared to HKD 16,685 million for the same period in 2023, representing a decrease of approximately 1.7%[175]. Customer Growth and Engagement - The total number of fiber-to-the-home (FTTH) connections reached 1.028 million, accounting for 70% of the consumer broadband lines by June 30, 2024[1]. - The number of members in The Club increased by 4% to 3.94 million, enhancing customer engagement through lifestyle products[14]. - The number of The Club members increased to nearly 4 million, driven by registrations from mainland China and Macau[25]. - The mobile communication user base grew to 4.884 million, reflecting a 5% increase compared to the previous year[28]. - As of June 30, 2024, the number of 5G mobile communication customers reached 1.571 million, accounting for 46% of postpaid customers[22]. - The number of registered users for DrGo increased by 6% to 395,000 as of June 30, 2024[28]. - The number of "PayMe" accounts increased by 3% to 3.82 million, reflecting the growing use of mobile payments among consumers[67]. - The postpaid mobile customer base grew by 50,000 year-on-year, reaching 3.433 million by June 30, 2024, with 5G customers increasing to 1.571 million, representing 46% of postpaid customers[88]. Revenue and Cost Management - The cost of sales for the six months ended June 30, 2024, rose by 3% to HKD 8.491 billion, consistent with revenue growth[6]. - Local telephone service revenue decreased by 12% to HKD 1.031 billion for the six months ended June 30, 2024, compared to HKD 1.173 billion in the same period last year[37]. - Mobile communication product sales recorded HKD 986 million, a decline of 14% due to weak consumer sentiment and lack of new features in smartphones[40]. - The local data service revenue, including broadband and local data revenue, increased by 5% year-on-year to HKD 6.345 billion for the six months ending June 30, 2024[33]. - The cost of goods sold was HKD 3,152 million, an increase of 23.7% from HKD 2,547 million for the same period in 2023[116]. - Sales costs, excluding the cost of goods sold, decreased to HKD 5,339 million from HKD 5,732 million, representing a reduction of 6.9%[116]. Investments and Capital Expenditures - Capital expenditures for the six months ended June 30, 2024, amounted to HKD 1.103 billion, representing 6.6% of revenue[8]. - Capital expenditure for mobile communications business decreased by 5%, reflecting improved efficiency in network maintenance and capacity enhancement[78]. - The company announced a partnership with China Merchants Capital to expand its physical network into new development areas in Hong Kong, enhancing resources for consumer services[47]. Technology and Innovation - The company launched a new 50G PON service in March 2024, enhancing network quality and supporting next-generation applications like 8K streaming and AI[1]. - The company launched the world's first cross-border rewards program in collaboration with several Asia-Pacific telecom operators to enhance travel experiences for mobile customers[25]. - The company has installed 5G infrastructure in 16 public and private hospitals, enhancing smart healthcare applications[35]. - The updated Now TV streaming app launched in January 2024, enhancing user flexibility and increasing customer conversion rates and spending[85]. - The company launched the 1O1O HOME service in January 2024, aiming to enhance customer loyalty and spending through tailored home broadband solutions[59]. Financial Health and Governance - The total debt as of June 30, 2024, was HKD 46.344 billion, with a debt-to-asset ratio of 41%[97]. - The company aims to maintain high standards of corporate governance, emphasizing ethical practices and compliance with applicable laws and regulations[155]. - The group has maintained compliance with the Corporate Governance Code, with specific exceptions noted due to the unique structure of the trust[136]. - The company maintains a clear credit policy, requiring individual credit assessments for customers requesting credit above a certain amount[183]. Dividends and Earnings - The interim dividend per share was HKD 0.3292, with basic earnings per share at HKD 0.2627, an increase of 2%[45]. - The interim dividend record date is set for August 14, 2024, with no transfers of units allowed during the specified period[123]. - The interim distribution per unit for the six months ended June 30, 2024, was HKD 32.92, consistent with the same period in 2023[132]. - Basic and diluted earnings per share for the six months ended June 30, 2024, are HKD 1,990 million, compared to HKD 1,952 million for the same period in 2023, reflecting a growth of approximately 1.9%[182].