Revenue Performance - Revenue increased by 1% year-on-year to HKD 11.692 billion, driven by growth in international direct dialing services and a 9% increase in enterprise solutions revenue to HKD 4.825 billion[4] - The company reported total revenue of HKD 11,692,176 thousand for the year ending August 31, 2023, representing a 1% increase from HKD 11,626,164 thousand in the previous year[10] - Total revenue for the year ended August 31, 2023, was HKD 11,692,176, a slight increase from HKD 11,626,164 in 2022, representing a growth of 0.57%[42] - Revenue from fixed telecommunications services was HKD 4,670,790,000, down 0.6% from HKD 4,697,959,000 in the previous year[57] - International telecommunications services revenue increased significantly to HKD 1,117,214,000, up 48.9% from HKD 750,192,000 in 2022[57] - Revenue from technology solutions and consulting services was HKD 1,061,536,000, a slight increase from HKD 1,037,159,000 in 2022[57] - Revenue from product sales was HKD 4,474,348,000, down 6.1% from HKD 4,765,564,000 in the previous year[57] - The residential segment generated revenue of HKD 2,392,820,000, a decrease from HKD 2,433,159,000 in the previous year[57] - The enterprise segment revenue increased to HKD 4,825,008,000, up from HKD 4,427,441,000 in 2022[57] Financial Performance - Adjusted EBITDA decreased by HKD 320 million or 12% to HKD 2.290 billion, primarily due to a 5% increase in network and sales costs to HKD 7.525 billion[4] - The adjusted net profit for the year was HKD 194,634 thousand, a significant decrease of 78% compared to HKD 904,875 thousand in the prior year[10] - The company recorded a loss of HKD 1.267 billion, which included a 194% increase in financing costs (HKD 702 million) and a goodwill impairment of HKD 1.2 billion[4] - The adjusted free cash flow decreased by 33% to HKD 763,249 thousand from HKD 1,133,253 thousand in the previous year[10] - The company reported a significant increase in financing costs to HKD 702,303 from HKD 239,204 in the previous year, indicating a rise of approximately 194%[42] - The company reported a net loss before tax of 1,231,331 thousand HKD in 2023, compared to a profit of 712,216 thousand HKD in 2022[65] - Basic loss per share for 2023 was 1,267,408 thousand HKD, compared to a profit of 553,321 thousand HKD in 2022, indicating a significant downturn[74] Operational Developments - The company aims to transition from traditional telecommunications to becoming a leader in Information and Communications Technology (ICT) by leveraging past investments in fixed-line infrastructure[5] - The introduction of AegisConnect aims to enhance core telecommunications services with AI diagnostics and DDoS protection, targeting mid-sized enterprises[6] - The management team has made significant progress in strengthening operations following the acquisition of Jardine One Solution, which faced integration challenges due to the pandemic[5] - The company continues to strengthen its position as a leading OTT entertainment operator in Hong Kong through partnerships with major content platforms[7] - The company accelerated the transformation of its enterprise business, providing comprehensive digital transformation solutions[15] - New contracts signed during the year generated strong momentum, offsetting revenue declines from previous years[15] Market and Customer Insights - The overall market for broadband services is expected to grow in line with population growth, as penetration rates have reached maturity[5] - The company provides customized services to 1,000 large enterprise clients and productized services to mid-sized and small enterprises, emphasizing its competitive market scale[6] - The company shifted its focus in residential business from customer acquisition through discounts to increasing ARPU through price hikes[15] - The company expects it will take 2 to 3 years for the increased ARPU to fully reflect in its overall contract base[15] - Broadband users decreased by 2% to 117,000, while voice users fell by 6% to 388,000[11] - The number of enterprise customers decreased by 4% to 101,000, while residential broadband users increased by 3% to 920,000[11] - The residential ARPU decreased by 3% to 179 HKD from 184 HKD year-over-year[11] Dividend and Shareholder Information - The adjusted free cash flow is considered a good indicator of cash-generating ability, with a proposed final dividend of HKD 0.20 per share, down 33% from the previous year[4] - The company plans to maintain a consistent dividend policy, ensuring that adjusted free cash flow remains at least 75% of the dividend payout ratio[4] - The company plans to distribute a final dividend of HKD 0.20 per share for the year ended August 31, 2023, consistent with the previous year[32] - The proposed final dividend per ordinary share for the year ended August 31, 2023, is also 20 cents, consistent with the previous year[80] Employee and Corporate Governance - The total number of full-time employees decreased by 9% to 4,428 from 4,864[11] - The group reported a 9% decrease in permanent full-time staff, with 4,428 employees as of August 31, 2023, down from 4,864 in 2022[29] - The company has adopted four restricted share unit plans to attract and retain skilled talent since its listing[30] - The company has complied with all corporate governance codes as per the Hong Kong Stock Exchange regulations[38] - There have been no significant events occurring after the reporting period[40] Financial Position and Debt Management - As of August 31, 2023, the group's cash and cash equivalents totaled HKD 1.017 billion, down from HKD 1.129 billion in 2022, while total debt was HKD 11.589 billion, compared to HKD 11.865 billion in 2022[22] - The net debt level as of August 31, 2023, was HKD 10.572 billion, a decrease from HKD 10.736 billion in 2022, resulting in a debt-to-equity ratio of 3.8 times, up from 2.4 times in 2022[22] - The group's net debt to EBITDA ratio was approximately 5.1 times as of August 31, 2023, compared to 4.6 times in 2022, with an average cost of financing at 5.3%, up from 2.7% in 2022[23] - The group has established interest rate swap arrangements totaling HKD 3.9 billion to mitigate interest rate risks, maintaining the risk at an annual level of 0.399%[24] - The management anticipates that cash inflows from operations, along with the ability to utilize existing bank loans, will be sufficient to meet the obligations as they come due[49]
香港宽频(01310) - 2023 - 年度业绩