HKT(HK:06823)2022-03-31 08:44Financial Performance - Hong Kong Telecom recorded stable growth in adjusted funds flow (AFF) in 2021, reflecting a recovery from the economic downturn[20]. - Total revenue for the year reached HKD 33.961 billion, with an EBITDA of HKD 12.733 billion[54]. - Revenue for the fiscal year reached HKD 30 billion, marking a 15% increase compared to the previous year[139]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion, representing a 20% year-over-year growth[141]. - The company reported a net profit margin of 12%, reflecting improved operational efficiency[139]. - The company has set a performance guidance of 10% revenue growth for the next fiscal year[139]. Customer Growth and Engagement - The number of customers continued to grow, with a significant increase in demand for fiber-to-the-home (FTTH) services, covering 98% of households[20]. - The penetration rate of 5G services reached approximately 21% of mobile communication customers by the end of last year, driven by the expanding application ecosystem[20]. - The number of 5G postpaid customers steadily increased in 2021, surpassing the initial penetration target of 20% to reach 21%, with an ARPU of HKD 70[27]. - The total transaction amount for The Club's "redemption and purchase" service more than doubled year-on-year, indicating effective customer engagement[21]. - The demand for smart home solutions has increased, helping to offset pricing pressures in the mass market[20]. - The online shopping platform Club Shopping saw sales grow by over 100% year-on-year, indicating strong consumer engagement[40]. - The number of registered users for the telemedicine platform DrGo has steadily increased, reflecting a growing demand for convenient healthcare services[40]. Service and Technology Development - The company successfully acquired additional mobile spectrum in the second half of the year to enhance the 5G experience for customers[20]. - The introduction of the MIRROR 5G service plan, utilizing augmented reality (AR) and virtual reality (VR), has contributed to an increase in average revenue per user (ARPU)[20]. - The company has been actively constructing fiber internet services in 16 rural areas to support government initiatives[20]. - The company anticipates further enhancement of indoor reception and coverage with the acquisition of 20 MHz of 5G spectrum in the 700 MHz band, expected to be operational this year[30]. - The introduction of new digital applications and solutions, leveraging emerging technologies like AI and IoT, is expected to boost operational efficiency for business clients[21]. - The company aims to leverage the synergy of its four-network services to enhance its market leadership in fiber broadband, mobile communications, and pay TV[40]. Awards and Recognition - Hong Kong Telecom won a total of 36 awards at the 53rd Outstanding Salesperson Awards[78]. - Hong Kong Telecom received the Best Smart Living Brand award at the 2021 e-Generation Brand Awards[81]. - Hong Kong Telecom was recognized with the 2021 Greater Bay Area Co-Creation Award[84]. - Hong Kong Telecom secured 55 awards at the 2021 Hong Kong Customer Service Association Awards[87]. - HKT Flexi was awarded the Outstanding Digital Mobile Loan Platform at the 2021 Financial Services Excellence Awards[80]. - HKT Enterprise Solutions won multiple awards including Best Managed Cloud Solution and Best Cybersecurity Solution at the 2020 FinTech Awards[83]. - Hong Kong Telecom's csl brand was recognized as No. 1 in 5G mobile communication services at the 2021 Headline No. 1 Awards[86]. - Now TV secured exclusive broadcasting rights for the English Premier League for three seasons from 2022/23 to 2024/25, enhancing its position as a leading sports broadcaster in Hong Kong[31]. Corporate Governance and Management - The board of directors includes experienced executives, with Li Ka Shing serving as the Executive Chairman, ensuring strong leadership[130]. - The company has a robust management structure with a focus on financial oversight, led by qualified professionals in the finance sector[130]. - The board has approved a new strategy to enhance customer engagement through digital platforms, aiming for a 30% increase in online interactions[137]. - The company has adopted corporate governance policies to ensure compliance with applicable laws and regulations[150]. - The board of directors has oversight of financial reporting and risk management systems to ensure compliance with applicable rules[156]. - The company has established various committees under the board, including the remuneration committee, nomination committee, and audit committee, with most members being independent non-executive directors[185]. Strategic Initiatives and Future Outlook - The company is exploring opportunities in the Greater Bay Area to contribute to regional development and digital transformation[42]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2025[138]. - New product launches are expected to contribute an additional HKD 5 billion in revenue over the next fiscal year[136]. - The company is investing HKD 1 billion in research and development for new technologies, focusing on 5G and AI solutions[137]. - A strategic acquisition of a local telecom firm is anticipated to enhance service offerings and customer base by 10%[138]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs by streamlining processes[144]. Corporate Social Responsibility - The company has established a corporate responsibility policy covering areas such as citizen responsibility and workplace health and safety[147]. - The corporate social responsibility policy emphasizes the company's positive contributions to society and the environment[148]. - The company has been recognized for its corporate social responsibility efforts, receiving a bronze award at the Spark Awards 2021[128]. - HKT's commitment to accessibility was acknowledged with a silver award in the 2020-2021 Accessibility Web Awards, demonstrating its focus on inclusivity[128].