PCCW(HK:00008)2019-04-01 09:27Media Business Performance - The media business of PCCW recorded a significant increase in monthly active users for its OTT service Viu, reaching 30 million in 16 markets by the end of 2018, nearly doubling from the previous year[8]. - Viu's monthly active users increased by 89% year-on-year, reaching over 30 million by the end of 2018[9]. - The total viewing time for Viu's audience reached 37.5 billion minutes, a 117% increase compared to 2017[9]. - Viu produced over 900 Viu Original programs in local languages, doubling the output from the previous year[10]. - Viu OTT has 30.7 million monthly active users, while the combined monthly active users for Viu, Now TV, and Viu TV applications and online services is 32 million[15]. - Viu's expansion into Myanmar in September 2018 increased its market presence to 28 markets[9]. - The company secured exclusive broadcasting rights for the English Premier League in Hong Kong until the 2021/22 season, reinforcing its market leadership in media[8]. - The company secured exclusive broadcasting rights for the English Premier League from 2019/20 to 2021/22 seasons, along with other major sports events[9]. Telecommunications and IT Solutions - Hong Kong Telecommunications maintained a stable performance in fixed broadband and mobile communications despite intense competition, launching a series of smart living and business services[8]. - The fiber network of Hong Kong Telecommunications covers 88.3% of households and 7,400 non-residential buildings[5]. - PCCW's enterprise solutions business is positioned as a leading IT outsourcing and business process outsourcing provider in Hong Kong and mainland China[6]. - The company aims to become a premier digital transformation partner in the Asia-Pacific region through its enterprise IT solutions[8]. - The telecommunications segment will continue to innovate to meet customer needs for smart home, smart living, and smart business operations[12]. Financial Performance - Revenue for the year reached $5 billion, marking a 10% increase compared to the previous year[35]. - Total revenue for the year ended December 31, 2018, increased by 6% to HKD 35.187 billion compared to the previous year[87]. - Core revenue increased by 5% to HKD 38.55 billion[82]. - Core profit attributable to equity holders increased by 8% to HKD 1.302 billion[82]. - Basic earnings per share for the year were HKD 0.6373, an increase of 2% from the previous year[87]. - The company reported a significant increase in user data, with a total of 100 million subscribers, representing a 15% year-over-year growth[35]. Strategic Expansion and Growth - The company plans to expand its market presence by entering three new regions in the upcoming fiscal year[35]. - The company plans to continue expanding its overseas business in the digital transformation space after securing several key projects last year[12]. - The company aims to maintain its market leadership in media entertainment, IT solutions, and telecommunications in Hong Kong while seeking growth opportunities through new business development and market expansion[12]. - The company is exploring potential mergers and acquisitions to enhance its service offerings and market share[35]. Corporate Governance and Compliance - PCCW Limited maintains a high level of corporate governance, emphasizing ethics, transparency, and compliance with applicable laws and regulations[41]. - The board of directors 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[46]. - The company has adopted a securities trading code for all directors and employees, ensuring compliance with the standards set by the Hong Kong Stock Exchange[44]. - The company has established a systematic procedure for annual self-evaluation of the board's performance and contributions[53]. Community Engagement and Corporate Social Responsibility - The company has a commitment to community support through its charitable foundation, which sponsors various public welfare activities in Hong Kong[33]. - The company has established a corporate social responsibility policy and an environmental strategy to enhance sustainable development efforts[126]. - The company actively supports the community through various programs aimed at assisting the elderly, students, and individuals with disabilities[130]. - The company has launched a series of employee health and wellness activities in 2018, optimizing maternity and paternity leave benefits[128]. Awards and Recognition - The company has received multiple awards, including Best Investor Relations Company at the 8th Asian Excellence Award 2018[24]. - MOOV HK won the Gold Award for Excellence in Advertising and the Bronze Award for Excellence in Digital Marketing at the Marketing Excellence Award 2018[28]. - ViuTV received the Silver Award for Best Drama Campaign at the PromaxBDA Asia 2018[29]. - Now TV was recognized for Outstanding Information and Entertainment Pay TV Service at the Urban Outstanding Service Awards 2018[30]. Risk Management and Internal Controls - The company has established a clear organizational structure for risk management, ensuring that significant risks affecting performance are regularly reported to the board[70]. - The internal audit department adopted a risk and control-based audit approach, providing independent assurance on the effectiveness of internal controls to the board and audit committee[71]. - The company has implemented policies to enhance the effectiveness of its risk management and internal control systems, requiring management to conduct regular assessments[72]. - The audit committee found no significant issues that would materially affect the company's financial condition or operational performance, deeming the risk management and internal control systems sufficient and effective[75]. Employee Engagement and Development - The company employed over 23,600 staff globally as of December 31, 2018, a decrease from 24,000 in 2017, with approximately 63% based in Hong Kong[115]. - The company has established performance bonus and incentive plans to encourage employees contributing to its performance goals[115]. - The company has formed a joint venture with CLP Holdings to provide comprehensive electric vehicle charging services, contributing to a cleaner environment[126]. - The company has established multiple communication channels for employees to provide feedback and suggestions to senior management[128].