HKT(HK:06823)2025-02-20 08:49Financial Performance - Total revenue increased by 1% to HKD 34.753 billion, while total revenue excluding mobile communication product sales rose by 2% to HKD 32.031 billion[4] - EBITDA increased by 3% to HKD 13.743 billion, and adjusted cash flow rose by 3% to HKD 5.973 billion[4] - The adjusted profit attributable to shareholders increased by 2% to HKD 5.070 billion, with basic earnings per share at HKD 0.6692[4] - Total revenue for 2023 was HKD 34.33 billion, a 1% increase compared to 2022[17] - Total revenue for the year ending December 31, 2024, was HKD 34.753 billion, an increase from HKD 34.330 billion in the previous year, representing a growth of approximately 1.23%[81] - The EBITDA for the year ending December 31, 2024, was HKD 13.743 billion, up from HKD 13.400 billion in the previous year, indicating a growth of about 2.55%[81] - Net profit for the year increased to HKD 5,101 million, up from HKD 5,012 million in 2023, representing a 1.8% growth[65] - Basic earnings per share rose to 66.92 cents, compared to 65.89 cents in the previous year, reflecting a 1.6% increase[63] Customer Growth and Services - The total number of fiber-to-the-home (FTTH) connections reached 1.04 million, covering approximately 71% of the consumer broadband customer base[4] - The 5G customer base grew by 25% to 1.747 million, contributing to a 5% increase in mobile communication service revenue[4] - The Now OTT service user base increased by 15%, reflecting the growing popularity of video streaming services[11] - The number of mobile communication users reached 4.884 million, showing a 1% increase compared to the previous year[19] - The number of retail broadband service consumer market lines was 1.471 million, a slight increase of 0.2%[19] - The number of installed pay-TV users increased by 15% year-on-year, reaching 1.433 million due to the launch of the revamped Now OTT service[26] Revenue Streams - The enterprise business achieved an 8% revenue growth, with new project orders exceeding HKD 5 billion, marking an 11% increase[4] - Local telecommunications services revenue increased by 3% to HKD 17.35 billion in 2024[17] - Total telecommunications service revenue increased by 1% to HKD 24.457 billion for the year ending December 31, 2024, compared to the previous year[21] - Local telecommunications service revenue rose by 3% to HKD 17.350 billion, driven by a 6% increase in local data service revenue to HKD 13.552 billion[21] - Mobile communication service revenue grew by 5% to HKD 8.762 billion, driven by increased roaming contributions and customer upgrades to 5G[30] Operational Efficiency and Cost Management - Operating costs decreased by 5% to HKD 3.3 billion, reflecting ongoing efforts to improve operational efficiency and implement cost optimization measures[36] - The company is implementing various AI applications to enhance efficiency, contributing to overall performance improvements[5] - The company is actively embracing AI technology to enhance customer service and operational efficiency[14] - Sales costs increased by 1% to HKD 17.71 billion, consistent with revenue growth during the year[35] Capital Expenditures and Financial Position - Capital expenditures for the year amounted to HKD 2.138 billion, a 5% increase from the previous year[18] - The company has reduced its debt, strengthening its financial position to seize new opportunities[15] - Total debt decreased to HKD 41.723 billion from HKD 44.804 billion, with a debt-to-EBITDA ratio improving to 3.0 times[43] - Capital expenditures, including capitalized interest, amounted to HKD 2.214 billion, representing 6.4% of revenue[46] Dividends and Shareholder Returns - The final dividend per share was HKD 0.4588, resulting in a total annual distribution of HKD 0.7880, equivalent to the adjusted cash flow per share for the year[4] - The board proposed a final distribution of HKD 45.88 per share unit for the year ending December 31, 2024, pending approval at the upcoming annual general meeting[54] - The interim distribution of HKD 32.92 per share was paid to shareholders for the six months ending June 30, 2024[54] Employee and Organizational Changes - As of December 31, 2024, the group employed over 13,100 employees globally, a decrease from 13,600 in 2023, with approximately 63% based in Hong Kong[53] - The group has established performance bonus and reward programs to incentivize employees based on overall revenue, EBITDA, and free cash flow targets[53] Risk Management and Compliance - The group has implemented risk management measures to mitigate market risks associated with foreign currency and interest rates, with most financing denominated in foreign currencies[49] - The group has entered into forward and swap contracts to manage risks from adverse fluctuations in foreign exchange rates and interest rates[49] - The audit committees of the trustee-manager and the company reviewed the audited consolidated financial statements for the year ending December 31, 2024[60] - The company has adhered to the corporate governance code principles, with some exceptions due to the unique structure of the trustee-manager[61] Asset and Liability Management - Non-current assets increased from HKD 102,675 million in 2023 to HKD 105,928 million in 2024, marking a 3.3% growth[67] - Current assets grew from HKD 9,443 million in 2023 to HKD 10,885 million in 2024, an increase of 15.3%[67] - The company's total liabilities increased from HKD 76,736 million in 2023 to HKD 77,168 million in 2024, a slight increase of 0.6%[69] - Accounts payable as of December 31, 2024, totaled HKD 7,212 million, an increase of 24.5% from HKD 5,781 million in 2023[96]