Financial Performance - Revenue from continuing operations for the six months ended June 30, 2023, increased to approximately HK$263 million, a slight rise from approximately HK$262 million for the same period in 2022[9]. - Operating expenses rose to approximately HK$373 million for the six months ended June 30, 2023, up from approximately HK$358 million in the previous year[9]. - Loss from operations before depreciation and amortisation increased to approximately HK$77 million, compared to approximately HK$32 million in the last corresponding period[9]. - Net loss from continuing operations decreased to approximately HK$149 million, representing a reduction of approximately 14% from a net loss of approximately HK$173 million for the six months ended June 30, 2022[9]. - Revenue for the six months ended June 30, 2023, was HK$263,393,000, a slight increase from HK$261,704,000 in the same period of 2022[12]. - Loss from operations increased to HK$110,060,000 compared to HK$96,100,000 in the previous year[12]. - Loss from continuing operations improved to HK$149,239,000 from HK$173,346,000 year-on-year[12]. - Total comprehensive loss for the period was HK$196,932,000, down from HK$225,801,000 in the previous year, reflecting a reduction of 12.8%[144]. - The company reported a loss of HK$196,986,000 for the six months ended June 30, 2023, compared to a loss of HK$225,874,000 for the same period in 2022, indicating an improvement in financial performance[147]. Customer Base and Market Position - The number of broadband customers decreased to approximately 172,000 in June 2023, down from approximately 201,000 in June 2022[10]. - The number of telephony customers decreased to approximately 60,000 in June 2023, down from approximately 71,000 in June 2022[10]. - Revenue from the telecommunications segment decreased by approximately HK$6 million to approximately HK$186 million for the six months ended June 30, 2023[10]. - The Group's telecommunications business covers over 2 million households in Hong Kong, with plans to convert hybrid fibre/coaxial networks into fibre optic networks for gigabit-speed broadband access[38]. - The Group's news service maintained a 24-hour broadcast on Channel 78, recognized for its credibility and influence in the industry[33]. Strategic Initiatives and New Offerings - The Group terminated all 118 pay channels on June 1, 2023, marking a strategic shift towards multimedia[21]. - The launch of the new 24-hour integrated horse racing OTT platform "i-CABLE 18 Treasure" occurred in late April 2023[22]. - The Group produced new travel and cooking programs in response to post-pandemic consumer interests, including "Good Deal in Japan" and "Master Chef's Delights 2023"[24][25]. - The Group's health-related program "Health Care Group" was launched to promote a healthy lifestyle post-pandemic[26]. - The Group secured broadcasting rights for several international events, including the highly anticipated Hong Kong Sevens and the FIVB Volleyball Nations League, enhancing its positioning as a professional sports brand[27]. - The Group launched two pilot programs on Channel 77 in preparation for the exclusive broadcast of the "19th Asian Games Hangzhou" in September 2023[29]. - Following the cessation of Pay TV, the new OTT service "i-CABLE 18 Treasure" was launched, featuring up to 14 different forms of horse racing, receiving strong support from previous subscribers[30]. Financial Position and Liabilities - Total assets as of June 30, 2023, were HK$897,556,000, up from HK$879,494,000 at the end of 2022[13]. - Total liabilities increased to HK$1,834,017,000 from HK$1,619,023,000[13]. - The net gearing ratio improved to -139% from -146%[13]. - The consolidated net liability value of the Group as of June 30, 2023, was approximately HK$936 million, compared to approximately HK$740 million as of December 31, 2022[71]. - Current liabilities exceeded current assets by HK$428 million as of June 30, 2023, down from HK$489 million as of December 31, 2022[162]. Operational Efficiency and Cost Management - The Group continues to focus on improving operational efficiency and reducing costs amid ongoing market challenges[142]. - The Group's total salaries and related costs for the six months ended June 30, 2023, were approximately HK$204 million, compared to approximately HK$171 million for the same period in 2022, reflecting an increase of about 19.3%[97]. - Depreciation expenses decreased to HK$45,793,000 in the first half of 2023 from HK$104,963,000 in the same period of 2022, indicating a reduction in asset write-downs[44]. - Interest costs paid rose to HK$21,788,000 in the first half of 2023, compared to HK$11,083,000 in the previous year, reflecting higher borrowing costs[150]. Future Outlook and Market Trends - The Group expects a positive impact on the advertising market in the second half of 2023 due to the recovery of economic activities and the tourism industry[111]. - The reopening of borders with Mainland China is anticipated to increase MTR passenger traffic and advertising revenue from MTR In-train TV[122]. - The Group plans to explore business opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area, collaborating with major media and operators in Mainland China to expand its audience base[126]. - A new roaming data service plan for the Greater Bay Area, Asia, and globally will be launched to cater to Hong Kong residents who frequently travel[129]. Financial Risks and Management - The Group is exposed to various financial risks, including market risk, credit risk, and liquidity risk[182]. - The Group's liquidity risk remains stable compared to the previous year, with no significant changes in contractual undiscounted cash outflows[188]. - The Group manages price risk by maintaining a diversified portfolio of investments with different risk and return profiles[186]. - The Group's financial risk management includes sensitivity analysis for price risk, indicating potential impacts on financial performance based on market fluctuations[192].
有线宽频(01097) - 2023 - 中期财报