Financial Performance - For the six months ending June 30, 2024, the company reported revenue from continuing operations of approximately HKD 277,170,000, an increase from HKD 263,393,000 in the same period last year, representing a growth of about 5%[1] - The company recorded a loss of approximately HKD 255,000,000 for the six months ending June 30, 2024, an increase of about 29% compared to a loss of approximately HKD 197,000,000 in the same period last year[2] - The group's revenue for the six months ended June 30, 2024, increased to approximately HKD 277 million, up from HKD 263 million for the same period in 2023, primarily driven by increased advertising revenue in the media segment[16] - The group reported a loss from continuing operations of HKD 254,929,000 for the six months ended June 30, 2024, compared to a loss of HKD 149,239,000 for the same period in 2023, indicating a deterioration in performance[42] - Basic loss per share from continuing operations was HKD 3.6 for the six months ended June 30, 2024, compared to HKD 2.1 for the same period in 2023[41] Revenue Segmentation - The media segment's revenue from continuing operations increased from approximately HKD 78,000,000 to about HKD 107,000,000, marking a growth of approximately 37%, primarily due to a 39% increase in advertising revenue[2] - The telecommunications segment's revenue decreased from approximately HKD 186,000,000 to about HKD 170,000,000, a decline of approximately 8.6%[2] - The revenue of the digital media segment grew by approximately 49% year-over-year[4] - The telecommunications segment generated revenue of HKD 169,823,000 for the six months ended June 30, 2024, down from HKD 185,576,000 in the same period of 2023, a decrease of 8.5%[69] Customer Metrics - The number of broadband and telephone customers decreased from approximately 172,000 and 60,000 to about 151,000 and 52,000, respectively, reflecting a competitive market environment[2] - The number of active users on hoy.tv reached approximately 380,000 in June 2024, representing an increase of about 82% compared to December 2023[4] - The i-cable.com website recorded approximately 840,000 active users in June 2024, with a peak of over 1.59 million active users during the period[4] - The "HOY" official mobile application has accumulated over 700,000 downloads as of June 30, 2024, a 41% increase from December 2023[4] Cost Management - Total operating expenses decreased by approximately 18% after excluding non-cash impairment losses, compared to the second half of 2023[2] - The company has implemented several cost-saving measures to enhance operational efficiency and performance[2] - The group's service costs for the same period rose by approximately HKD 70 million to about HKD 373 million, with production costs, network expenses, and sales costs increasing by approximately 39%, 11%, and 13% respectively compared to the previous year[16] Digital Transformation and Media Strategy - The company is accelerating the digital transformation of its media platform, leading to simultaneous increases in advertising revenue and advertiser clients[3] - The group broadcasted over 600 hours of international sports events in the first half of the year, including the Asian Cup with 24 participating teams[8] - The group produced a series of programs targeting the Greater Bay Area, including the large-scale Spring Festival variety show "Dragon Rising Bay Area Happy Year" aired in February 2024[7] - The group is one of the designated broadcasters for the 2024 Paris Olympics, producing a series of preview programs related to the event[9] Financial Position and Liabilities - The company’s net asset to debt ratio improved to -113% as of June 30, 2024, compared to -118% in the previous year[1] - Total assets as of June 30, 2024, were approximately HKD 951 million, compared to HKD 945 million as of December 31, 2023, with total liabilities increasing to approximately HKD 2,535 million from HKD 2,274 million[23] - The total liabilities increased to HKD 2,534,457,000 as of June 30, 2024, compared to HKD 2,273,976,000 as of December 31, 2023, reflecting a rise of approximately 11.5%[44] Future Outlook and Strategic Initiatives - The company aims to further expand its commercial customer market as a new revenue driver[3] - The group plans to continue investing in property, plant, and equipment to enhance profitability and shareholder returns[35] - The group is preparing a series of sports-themed projects in anticipation of the Greater Bay Area National Games in 2025, aimed at promoting sports enthusiasm among the public[39] - The company plans to continue its strategic transformation plan to enhance business performance and implement cost-saving measures[49] Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code as of June 30, 2024, with some deviations noted[97] - The Audit Committee, consisting mainly of independent non-executive directors, reviewed the interim financial information for the six months ended June 30, 2024, with no disagreements noted[99]
有线宽频(01097) - 2024 - 中期业绩