PCCW(HK:00008)2022-03-31 09:05Business Performance - The core business of PCCW recorded strong performance, with significant growth in revenue from the OTT service Viu, which maintained its leading position in Southeast Asia[8]. - Viu recorded a strong revenue growth in 2021, with EBITDA improvement, and had over 8.4 million paying users, a year-on-year increase of 58%[9]. - Monthly active users of Viu reached 58.6 million, representing a year-on-year increase of 30%[9]. - The telecommunications segment achieved double-digit revenue growth, focusing on large global enterprises, with over 100 clients from the Forbes Global 2000 list[10]. - 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]. - Revenue from continuing operations increased by 7% to HKD 38.654 billion[81]. - OTT business revenue surged by 25% to HKD 1.48 billion[81]. - The company's enterprise solutions business revenue grew by 20% to HKD 4.894 billion for the year ended December 31, 2021[83]. - The company reported a comprehensive profit attributable to equity holders of HKD 1.039 billion for the year[84]. Strategic Initiatives - PCCW successfully acquired additional spectrum in the government auction, enhancing its 5G network coverage and capacity[8]. - The company is actively expanding its IT services in Southeast Asia, focusing on smart city and digital transformation initiatives[7]. - The company aims to assist clients in achieving digital transformation and enhancing operational efficiency through its comprehensive IT solutions[7]. - The company is actively involved in mergers and acquisitions, enhancing its market presence and operational capabilities[32]. - The company is considering strategic acquisitions to enhance its market position, with a budget of $100 million earmarked for potential deals[35]. Digital Transformation and Technology - The digital ecosystem established by Hong Kong Telecom integrates services such as e-commerce, travel, insurance, big data analytics, fintech, and health tech[6]. - The company is focused on enhancing customer interaction and expanding its ecosystem through partnerships with technology providers[1]. - The company is investing in new technology development, allocating $50 million towards R&D initiatives[35]. - The company is focused on building 5G infrastructure and providing reliable broadband services to meet market demands[83]. Financial Overview - The revenue from continuing operations for the year was HKD 38.654 billion, with an EBITDA of HKD 12.309 billion[21]. - The company achieved a net profit attributable to equity holders of HKD 1.039 billion[21]. - The total debt as of December 31, 2021, was HKD 47.006 billion, with a debt-to-asset ratio of 50%[101]. - The company reported a profit attributable to shareholders of HKD 4.808 billion, with basic earnings per share of HKD 0.6349[88]. - The board declared a final cash dividend of HKD 0.2769 per share, resulting in a total annual cash dividend of HKD 0.3705 per share, a 15% increase from 2020[83]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, with experienced members overseeing various committees[34]. - The board consists of 14 members, including 3 executive directors, 5 non-executive directors, and 6 independent non-executive directors, with at least one independent director possessing relevant financial expertise[44]. - The company has established a clear division of roles between the chairman and the group managing director to ensure effective leadership and governance[43]. - The board's responsibilities include considering and approving interim and annual financial reports, as well as dividend amounts according to the adopted policy[43]. Employee Engagement and Corporate Social Responsibility - The company is actively involved in charitable activities, supporting public welfare initiatives in Hong Kong through its charitable foundation[33]. - The company has a corporate responsibility policy that covers areas such as citizen responsibility, equal opportunity, and the protection of company data and assets[39]. - The company has launched a new human resources information system, Connect, to streamline HR processes and improve employee access to information[119]. - The company has implemented a volunteer recognition program to encourage employee participation in community service[122]. Market Expansion and Customer Engagement - The company is actively seeking growth opportunities while monitoring potential adverse factors in a rapidly changing environment[83]. - The company is expanding its business into overseas markets, which increases exposure to multiple and potentially conflicting regulatory environments[115]. - The Club membership rewards program helps attract customers and offers personalized services[120]. - In 2021, the company received over 48,000 customer praises and multiple customer service awards[120]. Risk Management and Compliance - The group has established a clear organizational structure with defined responsibilities and reporting procedures for risk management and internal control[67]. - The internal audit department adopts a risk-based audit approach and reports findings to the board and audit committee regularly[70]. - The company has implemented comprehensive data governance measures, including enhanced data leak protection capabilities and employee training programs[111]. - The company has initiated various business projects aimed at sustainable growth, emphasizing the importance of effective project management to ensure timely and quality deliverables[112]. Awards and Recognition - Viu Thailand won the Best Actor in a Supporting Role and Best Actress in a Supporting Role at the 26th Asian Television Awards[29]. - Viu Indonesia received the Best Millennial Women Brand Choice 2021 for Movie Streaming, highlighting excellent products and services reputation[30]. - Viu Singapore achieved multiple awards at The Loyalty & Engagement Awards 2021, including Gold for Best Use of Influencers and Silver for Best Use of Content Marketing[31]. - Telecom Enterprise Solutions received the Best SuccessFactors Partner Award 2020 from SAP[29].