Revenue Performance - Revenue from continuing operations increased to approximately HK$277.17 million for the six months ended June 30, 2024, compared to HK$263.39 million for the same period in 2023, representing an increase of approximately 5%[11]. - Revenue from the media segment rose to approximately HK$107 million, a 37% increase from approximately HK$78 million in the previous year, primarily driven by a 39% increase in advertising revenue[8]. - Revenue from digital media increased by approximately 49% compared to the same period last year[21]. - Revenue from continuing operations increased to approximately HK$277 million for the six months ended June 30, 2024, compared to approximately HK$263 million for the same period in 2023, primarily driven by increased advertising revenue in the media segment[52]. - Revenue from the telecommunications segment decreased by approximately HK$16 million to approximately HK$170 million for the six months ended June 30, 2024, compared to approximately HK$186 million for the same period in 2023[62]. - Reportable segment revenue for the telecommunications segment in 2024 was HK$169,823,000, a decrease of 8.5% from HK$185,576,000 in 2023[169]. - Media segment revenue increased to HK$107,375,000 in 2024, up 37.9% from HK$77,817,000 in 2023[169]. - Total reportable segment revenue for 2024 was HK$277,198,000, compared to HK$277,170,000 in 2023, indicating a slight increase[169]. Loss and Financial Performance - The Group's loss for the six months ended June 30, 2024, increased to approximately HK$255 million, representing a 29% increase from a loss of approximately HK$197 million in the same period of 2023[9]. - The basic loss per share for the period was HK$3.6, compared to HK$2.8 for the same period in 2023[11]. - The Group's operating loss for the six months ended June 30, 2024, was approximately HK$188.69 million, compared to HK$110.06 million for the same period in 2023[11]. - Loss from operations for the same period was HK$188,689,000, compared to a loss of HK$110,060,000 in 2023, representing a 71.2% increase in operating loss[96]. - Loss for the period was HK$254,929,000, up from HK$196,986,000 in 2023, indicating a 29.3% increase in total loss[100]. - Basic and diluted loss per share from continuing operations for the six months ended June 30, 2024, was approximately HK$3.6 cents, compared to approximately HK$2.1 cents for the same period in 2023[59]. - The loss from continuing operations attributable to equity shareholders for the six months ended June 30, 2024, was HK$254,929,000, compared to HK$149,239,000 in 2023, representing an increase of 70.8%[193]. - The total basic loss per share for the period was HK(3.6) cents, compared to HK(2.8) cents in the previous year, reflecting a 28.6% increase in losses per share[193]. Operating Expenses and Cost Management - The Group implemented several cost-saving measures, resulting in a decrease in total operating expenses by approximately 18% compared to the second half of 2023[10]. - The Group's operating expenses increased by approximately 33% compared to the last corresponding period, influenced by ongoing costs from the Pay TV operation[53]. - Operating expenses from the media segment increased by approximately 59% to approximately HK$279 million for the six months ended June 30, 2024, compared to approximately HK$175 million for the same period in 2023[61]. - The Group's financial performance reflects the challenging operating environment amid the economic rebound in 2024[7]. - Total operating expenses decreased by approximately 18% compared to the second half of 2023, leading to a 13% improvement in the loss from continuing operations, excluding non-cash impairment losses[56]. Customer Metrics and Market Reach - The number of broadband and telephony customers decreased to approximately 151,000 and 52,000, respectively, down from approximately 172,000 and 60,000 in June 2023[8]. - The customer retention rate significantly improved in the first half of 2024 following a strategic shift to telemarketing as the primary sales channel for telecommunications services[46]. - The Group's telecommunications network now covers over 2 million households in Hong Kong, enhancing its service reach[46]. Assets and Liabilities - Total assets increased to HK$950,801,000 as of June 30, 2024, compared to HK$945,159,000 at the end of 2023, reflecting a growth of approximately 0.3%[13]. - Total liabilities rose to HK$2,534,457,000, up from HK$2,273,976,000, indicating an increase of approximately 11.5%[13]. - The net gearing ratio improved to -113% from -118%, suggesting a reduction in financial leverage[13][14]. - The carrying amount of interest-bearing borrowings was approximately HK$1,281 million as of June 30, 2024, with 36% maturing within one year[66]. - The total deficit increased from HK$1,329 million as of December 31, 2023, to HK$1,584 million as of June 30, 2024[117]. Cash Flow and Financing Activities - Cash flows from operating activities showed a net cash used of HK$150,949,000 for the six months ended June 30, 2024, compared to HK$113,888,000 for the same period in 2023[111]. - For the six months ended June 30, 2024, net cash from financing activities was HK$244,197,000, an increase of 22.6% compared to HK$198,959,000 in 2023[113]. - The net cash used in investing activities was HK$56,161,000, slightly lower than HK$57,240,000 in the previous year[111]. - The Group's banking facility was renewed in March 2023, with an outstanding loan balance of HK$295 million expected to be rolled over[118]. - Forever Top has provided financial support to the Group, including a commitment to provide up to HK$986 million in unsecured loans over a 12-month period starting June 30, 2024[118]. Strategic Initiatives and Future Plans - The Group is actively exploring new partnership opportunities with other telecommunications operators and data center providers to expand its business scope[51]. - The Group plans to expand network coverage and upgrade its network to provide high-speed Gigabit-capable Passive Optical Network services to enhance competitiveness[72]. - The Group is implementing a strategic transformation plan aimed at enhancing business performance and achieving cost savings[119]. - The Group is working on four drama projects, including a mini-series for a Chinese social media platform and two new genre short series[84]. - The Group aims to promote more locally produced high-quality content and introduce new overseas content to enhance competitiveness[87]. Financial Risk Management - The Group's financial risk management includes market risk factors such as currency risk and interest rate risk[146]. - The Group's financial position remains stable with no significant changes in accounting policies affecting its performance[130]. - The Group's liquidity risk includes contractual cash outflows for additional loans from Celestial Pioneer Limited amounting to HK$240,000,000 with a term of 3 years[149]. Content and Programming - The Group secured broadcasting rights for several international sports events, providing over 600 hours of live broadcasts in the first half of 2024, including the "AFC Asian Cup Qatar" where Hong Kong qualified for the finals for the first time in 55 years[31][33]. - The flagship programme "City Focus" achieved a peak rating of 3.6 in the first half of 2024, following an upgrade to a newly designed virtual studio[39]. - The programme "Let's Feast GBA" achieved an average rating of 3.1 points, with a peak rating of 3.7 points[25]. - The average rating for "Undercover (CNY)" was 4 points, indicating strong viewer engagement[24]. - The Group's sports programming included major events like the "FIVB Women's Volleyball Nations League Hong Kong," which successfully boosted ratings and brand effect[31][33].
有线宽频(01097) - 2024 - 中期财报