HKT(HK:06823)2023-09-07 08:38Customer Growth and Services - As of June 2023, the number of 5G customers reached nearly 1.2 million, accounting for 35% of postpaid customer base[6] - The number of 5G users increased to 1.27 million by the end of July 2023, representing 38% of the postpaid customer base[12] - Now TV's commercial user revenue grew by 17% year-on-year, driven by increased penetration in the dining and tourism sectors[14] - The number of mobile communication users decreased by 3% to 4,656,000, while postpaid users increased by 2% to 3,383,000[55] - The installed pay TV user base grew by 4% to 1,428,000, reflecting a positive trend in subscription services[55] - The Club membership increased by 4% to 3,778,000, indicating strong customer engagement[55] Revenue and Financial Performance - For the six months ended June 30, 2023, mobile communications service revenue increased by 5% to HKD 3.815 billion, reflecting a recovery in roaming revenue and increased adoption of 5G services[46] - Total revenue, including mobile communications product sales, increased by 1% to HKD 4.968 billion, despite a slowdown in mobile device sales[46] - Total revenue (excluding mobile communication product sales) increased by 3% to HKD 15.247 billion, reflecting strong demand for reliable fiber services and gradual recovery in roaming revenue[48] - The telecommunications service revenue increased by 1% to HKD 11.685 billion, with local telecommunications services growing by 2%[49] - The profit attributable to unit holders rose by 2.2% to HKD 1.952 billion, with basic earnings per unit at HKD 0.2577[48] - The company reported a mid-year financial performance, but specific figures and percentages were not provided in the extracted content[26] Operational Efficiency and Cost Management - Operating costs were reduced by 4%, contributing to the overall increase in EBITDA[49] - Adjusted cash flow increased by 2.2% to HKD 2.429 billion, demonstrating improved operational efficiency[54] - The cost of sales increased by 2% to HKD 8.279 billion, consistent with revenue growth during the period[73] - Operating costs, excluding depreciation and amortization, decreased by 4% to HKD 2.112 billion, improving the overall operating cost to revenue ratio to 12.9% from 13.5% last year[74] Investments and Capital Expenditures - Capital expenditures for the six months ended June 30, 2023, were HKD 1.134 billion, representing 6.9% of revenue, down from 7.3% last year[84] - The authorized and contracted capital for property, plant, and equipment increased from HKD 1,273 million as of December 31, 2022, to HKD 1,558 million as of June 30, 2023, an increase of 22.4%[138] Debt and Financial Position - Total debt as of June 30, 2023, was HKD 45.117 billion, with a debt-to-asset ratio of 41%, up from 40% at the end of 2022[81] - Financing costs increased by 48% to HKD 0.925 billion due to rising interbank rates, with the average cost of debt rising to 3.77% from 2.61% last year[77] - The total liabilities decreased from HKD 22,609 million as of December 31, 2022, to HKD 18,673 million as of June 30, 2023[97] Digital Transformation and Innovation - HKT Enterprise Solutions is leveraging AI and cloud technology to assist organizations in digital transformation, particularly in the Greater Bay Area[6] - The company is participating in the pilot program for the potential launch of a "digital Hong Kong dollar"[7] - The company is expanding its digital transformation service offerings, integrating AI-based cloud computing and enterprise managed services[15] - The company aims to position Hong Kong as a global innovation technology hub, leveraging unique competitive advantages[21] Community and Environmental Initiatives - The Smart Charge joint venture aims to provide electric vehicle charging solutions, supporting the Hong Kong Climate Action Blueprint 2050[19] - The company continues to enhance user experience by transforming traditional phone booths into smart phone booths, providing free internet access and useful information[8] - The company is enhancing its community services with smart phone booths that provide free Wi-Fi and other amenities[19] Governance and Management - The board includes experienced non-executive directors with extensive backgrounds in telecommunications and finance, enhancing corporate governance[27][28][29][30][32][34] - The company is involved in various committees, including audit and remuneration, indicating a structured approach to oversight and strategic decision-making[27][30][34] - The independent non-executive director has a notable academic background, having served as a professor at prestigious universities, which may contribute to the company's strategic direction[34][35] Shareholder and Equity Information - The major shareholder of the company is PCCW, holding 3,963,449,681 units, representing 52.29% of the issued share capital[193] - The total number of shares held by PCD in PCCW is 269,471,956, while Eisner holds 38,222,413 shares[183] - The company has not repurchased or redeemed any units during the six months ending June 30, 2023, in compliance with the trust agreement[198]