PCCW(HK:00008)2020-04-01 09:20Financial Performance - For the year ended December 31, 2019, PCCW recorded stable performance despite economic challenges, with a strong operational performance from Hong Kong Telecommunications and continued expansion in media and enterprise services[7]. - The group reported a total revenue of HKD 37.521 billion and an EBITDA of HKD 12.381 billion for the year[19]. - The net profit attributable to equity holders was HKD 0.681 billion, reflecting the company's profitability[19]. - Total revenue decreased by 3% to HKD 37.521 billion, while revenue excluding mobile communication product sales increased by 3% to HKD 34.121 billion[82]. - Consolidated EBITDA increased by 1% to HKD 12.381 billion, with net profit attributable to equity holders at HKD 0.681 billion[82]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion for the fiscal year, representing a 15% year-over-year growth[35]. - The company reported a significant increase in user data, with a total of 230 million active users, representing a growth of 15% year-over-year[40]. - The company reported a net profit margin of 12%, which is an improvement from 10% in the previous fiscal year[36]. Telecommunications and Technology - Hong Kong Telecommunications successfully acquired a significant amount of 5G mobile communication spectrum in a government auction, with plans to launch 5G services in April 2020[7]. - The company plans to launch 5G mobile communication networks and services in 2020, enhancing customer experience and creating new business opportunities[19]. - The telecommunications segment recorded stable operational performance in 2019, with adjusted cash flow showing steady growth despite a challenging economic environment[11]. - The company aims to explore enterprise market applications for 5G technology, leveraging its high-speed, massive connectivity, and ultra-low latency capabilities[11]. - The company is committed to seeking development opportunities in regional markets to achieve sustainable growth[7]. Media and Entertainment - The OTT service Viu had over 41 million monthly active users by the end of 2019, operating in 17 markets[7]. - Now TV successfully acquired exclusive broadcasting rights for the UEFA Euro 2020™ in Hong Kong, expected to drive subscriber growth and advertising revenue[8]. - Viu's monthly active users increased significantly from 31 million last year to 41 million by the end of 2019, with total viewing hours rising by 69% to 5.7 billion[8]. - The company aims to expand its media and enterprise solutions business in Southeast Asia, focusing on growth opportunities[19]. - The media business revenue increased by 1% to HKD 4.015 billion, with OTT revenue up 18% to HKD 1.071 billion and free TV revenue up 27% to HKD 0.259 billion[82]. Real Estate and Development - The residential project in Niseko, Japan, saw over 90% of units sold, with expectations to set new property price records in the area[7]. - The residential units at the Park Hyatt Niseko hotel have sold 90% of their units, with remaining units reserved for future development projects[11]. - The total revenue for the year ended December 31, 2019, was HKD 10.15 billion, a 238% increase from HKD 3 billion in 2018, primarily due to the sale of properties in Japan[98]. Corporate Governance and Management - The company emphasizes its commitment to corporate governance with a structured board and various committees, including the remuneration and nomination committees[37]. - The board 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[45]. - The company has a strong management team with extensive experience in the telecommunications industry, including Mr. Li, who has been in the industry for many years[37]. - The company has established a robust succession plan and training programs to develop talent and support business growth[132]. - The company has implemented a whistleblowing policy to allow employees and stakeholders to report any misconduct, ensuring transparent and prompt investigations[74]. Risk Management and Compliance - The company has established a clear organizational structure for risk management and internal control, ensuring that assets are protected and compliance with relevant regulations is maintained[68]. - The risk management framework follows a "three lines of defense" model, with the first line responsible for identifying and managing risks on a daily basis[70]. - The company emphasizes continuous improvement in the monitoring environment and implements risk reduction measures as opportunities arise[70]. - The company has implemented risk management measures to mitigate market risks associated with foreign currency and interest rates[110]. - The company has established a comprehensive data governance approach to protect sensitive customer data and mitigate operational disruptions from cyberattacks[121]. Employee and Community Engagement - The company has established performance bonus and reward plans to incentivize employees based on overall performance metrics[113]. - The corporate volunteer team contributed over 10,000 hours of volunteer service in 2018, receiving multiple awards for their community contributions[136]. - The company actively supports the community through various programs aimed at assisting seniors, students, and individuals with disabilities[135]. - The company has received the "Caring Company" logo for over 15 consecutive years, recognizing its commitment to community care[136]. - In 2019, the company received over 180 customer service awards, including recognition from various associations for its high-quality customer service[134]. Strategic Acquisitions and Partnerships - The acquisition of HCL Insys Pte. Ltd. is expected to enhance the company's IT service capabilities in Southeast Asia, providing end-to-end IT services[10]. - The company completed the acquisition of HCL Insys to promote growth in Southeast Asia[26]. - The company has been actively involved in mergers and acquisitions to expand its market presence and capabilities[34]. - The company has established ongoing related transactions with China Unicom Group, which is a major shareholder and related party, involving the purchase and provision of various IT services and products[190]. Shareholder Returns and Dividends - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders, considering various factors including financial condition and operational needs[80]. - Proposed final dividend of HKD 0.23 per share for the year ended December 31, 2019, compared to HKD 0.2233 in 2018, subject to shareholder approval[114]. - The company declared an interim dividend of HKD 0.0918 per ordinary share for 2019, totaling approximately HKD 709 million, compared to HKD 0.0891 per share in 2018[144].