Financial Performance - Total revenue for the first half of 2024 was HKD 4.889 billion, a decrease of 8.2% year-on-year; main telecom service revenue was HKD 4.160 billion, down 11.3%[3] - Profit attributable to shareholders was HKD 455 million, a decline of 36.9% compared to the same period last year; basic earnings per share were HKD 0.123, also down 36.9%[3] - The net profit for the first half of 2024 was HKD 471 million, down 35.8% from HKD 734 million in the first half of 2023[19] - The group reported a total comprehensive income of HKD 461 million for the first half of 2024, down from HKD 723 million in the same period of 2023[20] - The group reported a segment profit of HKD 1,059 million for the six months ended June 30, 2024, a decrease of 30.3% from HKD 1,521 million in the same period of 2023[31] - EBITDA for the period was HKD 1.038 billion, down 28.3% from HKD 1.448 billion in the previous year[48] Revenue Breakdown - Mobile communication service revenue increased by 11.6% year-on-year to HKD 510 million; internet business revenue grew by 4.5% to HKD 737 million; enterprise business revenue rose by 6.8% to HKD 1.608 billion[4] - Revenue from mobile communication services increased to HKD 510 million for the six months ended June 30, 2024, up 11.6% from HKD 457 million in the same period of 2023[28] - Internet business revenue rose to HKD 737 million, a 4.5% increase compared to HKD 705 million in the previous year[28] - International telecommunications revenue decreased significantly to HKD 1,237 million, down 36.6% from HKD 1,951 million year-on-year[28] - Corporate business revenue increased to HKD 1,608 million, reflecting a growth of 6.8% from HKD 1,506 million in the prior year[28] - Telecom service revenue fell by 11.3% to HKD 4.160 billion, a decrease of HKD 530 million, primarily due to a decline in international telecom business messaging service revenue[49] Market Position and Developments - As of June 30, 2024, Macau Telecom held a 50.0% market share in the Macau mobile market, with over 620,000 5G users, achieving a penetration rate of 87.9%[5] - Macau Telecom's broadband market share was approximately 97.0%, maintaining its leading position in Macau[5] - The company launched 5.5G commercial services in July 2024, marking Macau's entry into the "5.5G era" and becoming one of the first cities globally to do so[5] - The group expanded its MPLS virtual private network service, TrueCONNECTTM, covering nearly 170 network service nodes across 160 countries and regions[9] - The group joined the GSMA Open Gateway initiative and won first place in the Open Gateway programming marathon at the 2024 Shanghai MWC, showcasing its technological innovation capabilities[10] Innovation and Technology - The company introduced a one-stop smart medical solution "Dr. Easy" for healthcare institutions, promoting the development of smart healthcare in Macau[6] - The group plans to leverage 5.5G technology to support the "Digital Macau 3.0" initiative, enhancing smart applications and services in the region[14] - The group aims to deepen digital transformation and upgrade core products by integrating emerging technologies such as AI and big data into its services[15] - The group has obtained 4 new patents and 12 software copyrights in the first half of 2024, bringing the total to 17 patents and 56 software copyrights as of June 30, 2024[11] Cost and Expenses - The cost of providing telecommunications services was HKD 2.358 billion, a slight decrease from HKD 2.418 billion in the previous year, while the cost of mobile phone and equipment sales increased to HKD 720 million from HKD 619 million[34] - Employee costs, including directors' remuneration, totaled HKD 537 million, down from HKD 577 million in the previous year[36] - The depreciation and amortization expenses totaled HKD 378 million, down from HKD 452 million in the previous year[34] - Other operating expenses decreased by 12.0% to HKD 249 million, primarily due to foreign exchange gains recorded during the period[59] Cash Flow and Liquidity - Cash inflow from operations was HKD 891 million, a decrease of 27.4% from HKD 1,228 million in the same period of 2023[63] - The group's liquidity management policy ensures sufficient cash reserves and adequate committed bank and other loan facilities to meet both short-term and long-term funding needs[74] - As of June 30, 2024, the group had cash reserves of HKD 1.561 billion and undrawn committed bank and other loan facilities of HKD 7.29 billion, sufficient to cover upcoming debt repayments of HKD 3.855 billion[72] Debt and Financing - The group’s net borrowings increased to HKD 2.363 billion, with a net capital debt ratio rising from 17% on December 31, 2023, to 18% on June 30, 2024[68] - The company has issued a 12-year guaranteed bond amounting to USD 450 million (approximately HKD 3.514 billion) with an annual interest rate of 6.1%[77] - Approximately 91.1% of the company's borrowings as of June 30, 2024, were at fixed interest rates, compared to 90.9% as of December 31, 2023[79] - The actual interest rate for fixed borrowings remained at 6.1% for both June 30, 2024, and December 31, 2023[80] Corporate Governance and Social Responsibility - The group has maintained a strong focus on sustainable development and corporate social responsibility initiatives, including the "Youth Growth Program" in Macau[12] - The company has fully complied with the corporate governance code as per the Hong Kong Stock Exchange rules during the reporting period[85]
中信国际电讯(01883) - 2024 - 中期业绩