HUTCHTEL HK(00215)2025-03-14 09:21Financial Performance - Total revenue for 2024 was HKD 4,782 million, a decrease of 2% compared to 2023[3] - EBITDA for 2024 increased by 4% to HKD 1,522 million, driven by effective cost-saving measures[9] - The company achieved a net profit attributable to shareholders of HKD 6 million, improving by 112% from a loss of HKD 52 million in 2023[7] - Total revenue for 2024 decreased by 2% to HKD 4,782 million compared to HKD 4,896 million in 2023[16] - EBITDA for 2024 increased by 4% to HKD 1,522 million, primarily due to a reduction in operating expenses[18] - Shareholder profit for 2024 was HKD 6 million, a 112% improvement from a loss of HKD 52 million in 2023[19] - The company reported a pre-tax profit of HKD 85 million, significantly up from HKD 26 million in the previous year, marking a 226.9% increase[29] - The total comprehensive income attributable to shareholders for the year was HKD 36 million, compared to a loss of HKD 50 million in 2023[31] Revenue Breakdown - Customer service revenue net increased by HKD 36 million or 1% to HKD 3,561 million[9] - Roaming service revenue surged by 30% to HKD 684 million, offsetting a 4% decline in local service revenue[9] - Revenue from mobile communication and related services increased to HKD 3,561 million in 2024, up 0.8% from HKD 3,531 million in 2023[58] - Revenue from telecommunications hardware and other products decreased to HKD 1,221 million in 2024, down 10.6% from HKD 1,365 million in 2023[58] Customer Metrics - The number of customers increased by 17% to approximately 4.6 million, primarily due to strong growth in prepaid customer base[12] - Total customer base increased by 17% to 4.64 million, with a significant growth in prepaid customers by 29%[21] - The monthly churn rate for postpaid customers remained stable at 1.0%[21] - The 5G penetration rate rose by 8 percentage points to 54% in 2024[12] - 5G penetration rate increased by 8 percentage points to 54% compared to 2023[21] Expenses and Cost Management - Operating expenses decreased by 5% to HKD 1,430 million, reflecting successful cost management measures[18] - Operating expenses for 2024 totaled HKD 1,658 million, a decrease of 4.4% from HKD 1,735 million in 2023[62] - The cost of goods sold decreased to HKD 1,200 million from HKD 1,340 million, reflecting a reduction of 10.4%[29] Cash Flow and Liquidity - Cash and cash equivalents increased to HKD 3,168 million from HKD 1,910 million, representing a growth of 66.0%[33] - Operating cash flow for the year ended December 31, 2024, was HKD 1,115 million, a decrease of 3.2% from HKD 1,152 million in 2023[38] - Net cash generated from operating activities was HKD 1,081 million, down from HKD 1,127 million, reflecting a decline of 4.1%[38] - Cash flow from investing activities showed a net inflow of HKD 936 million, a significant improvement compared to a net outflow of HKD 1,543 million in 2023[38] - The company reported a net cash position of HKD 3,679 million as of December 31, 2024, with 63% denominated in USD and 36% in HKD[79] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 5.21 per share, consistent with 2023[8] - The company declared an interim dividend of HKD 361 million for the year[34] - Total dividends paid for 2024 remained unchanged at HKD 361 million, consistent with 2023[67] Capital Expenditure and Investments - Capital expenditure decreased by 10% to HKD 434 million, representing 12% of service revenue[24] - The company incurred HKD 434 million in capital expenditures for property, plant, and equipment, a decrease of 9.8% from HKD 481 million in 2023[38] - Capital commitments for property, plant, and equipment amounted to HKD 129 million in 2024, up from HKD 121 million in 2023[84] Governance and Corporate Strategy - The company aims to enhance long-term total returns for stakeholders while focusing on sustainable profitability and cash flow growth[85] - The group’s sustainable development mission aligns its business strategy with sustainable development goals, aiming to create long-term value for stakeholders[89] - The group’s governance framework for sustainable development is integrated at all levels, including the board and various committees, ensuring accountability in operations[89] - The company has complied with all applicable code provisions of the corporate governance code during the year ending December 31, 2024[97] Employment and Human Resources - As of December 31, 2024, the group employed 1,181 full-time and part-time staff, a decrease from 1,240 in 2023, with an average of 1,197 employees for the year[88] - Employee costs for the year ending December 31, 2024, totaled HKD 386 million, up from HKD 368 million in 2023[88] - The group emphasizes the importance of high-quality human resources to maintain market leadership and offers competitive salaries and benefits[88] Future Outlook - The company plans to expand its 5G network in high-traffic areas and launch innovative solutions to enhance customer experience[13] - The company remains cautiously optimistic about future business prospects despite global economic uncertainties[13]