HKT(HK:06823)2022-02-24 08:42Revenue Growth - Total revenue increased by 5% to HKD 33.961 billion, driven by strong demand for fixed broadband and more consumers and businesses opting for 5G services[3] - Total revenue for the year ended December 31 was HKD 33,961 million, a 5% increase compared to the previous year[10] - For the year ended December 31, 2021, total revenue increased to HKD 33,961 million, up from HKD 32,389 million in 2020, representing a growth of approximately 4.9%[69] - The total revenue from customer contracts for 2021 was HKD 33,906 million, compared to HKD 32,310 million in 2020, marking an increase of approximately 4.9%[101] Profitability - EBITDA rose by 2% to HKD 12.733 billion, and adjusted for the impact of the 2020 Employment Support Scheme, it increased by 5%[3] - EBITDA for the year was HKD 12,733 million, reflecting a 2% growth year-over-year[10] - The EBITDA margin for telecommunications services improved to 39% from 38% in the previous year[10] - EBITDA for the year ended December 31, 2021, was HKD 12,733 million, compared to HKD 12,527 million in 2020, reflecting an increase of about 1.6%[99] Net Profit and Earnings - Profit attributable to shareholders was HKD 4.808 billion, with basic earnings per share at HKD 0.6349[3] - The net profit for the year was HKD 4,822 million, a decrease from HKD 5,319 million in 2020, reflecting a decline of about 9.3%[71] - Basic earnings per share for the year were HKD 0.7001, compared to HKD 0.6349 in the previous year, indicating an increase of approximately 10.3%[70] - The diluted earnings per share decreased from HKD 5.303 million in 2020 to HKD 4.808 million in 2021, based on weighted average shares of approximately 7.575 billion[113] Dividends - The final dividend per share was HKD 0.4207, bringing the total dividend for the year to HKD 0.7277, equivalent to the adjusted cash flow per share[3] - The proposed final dividend per share for the year ended December 31, 2021, is HKD 42.07, amounting to HKD 3.187 billion, compared to HKD 40.97 and HKD 3.104 billion in 2020[109] Revenue by Segment - Mobile communications revenue recorded a 13% increase to HKD 11.748 billion, reflecting strong customer acquisition and upgrades to 5G plans[5] - The local data services business achieved a revenue growth of 4%, while international telecom services revenue declined by 2% due to reduced voice wholesale revenue[5] - Mobile communication revenue increased by 13% to HKD 11,748 million, driven by a 51% increase in mobile communication product sales[10] - The company reported a 280% increase in revenue from pay TV services, reaching HKD 2,456 million[10] Operating Costs and Financing - Operating costs increased by 8% to HKD 4,499 million, impacting overall profitability[10] - Financing costs netted HKD 1,148 million, an 11% increase compared to the previous year[10] - The financing costs for 2021 were HKD 1,148 million, a decrease from HKD 1,296 million in 2020, representing a reduction of approximately 11.5%[99] Customer Growth - The number of mobile communication users increased by 4% to 4,770 thousand, up from 4,605 thousand in the previous year[11] - The number of The Club members rose by 11% to 3,541 thousand, compared to 3,178 thousand in the previous year[11] - The number of installed pay TV users increased by 2% to 1,373 thousand, up from 1,348 thousand in the previous year[11] - The number of prepaid users increased by 9% to 1,473 thousand, compared to 1,353 thousand in the previous year[11] Capital Expenditures - Capital expenditures for the year totaled HKD 2,378 million, consistent with the previous year's expenditure[11] - For the year ended December 31, 2021, the group's capital expenditure, including capitalized interest, was HKD 24.58 billion, representing 7.2% of revenue, a slight decrease from 7.5% in 2020[46] Debt and Assets - The total debt as of December 31, 2021, was HKD 438.86 billion, with a debt-to-asset ratio of 40%[44] - The total assets as of December 31, 2021, amounted to HKD 109,612 million, an increase from HKD 103,171 million in 2020, representing a growth of about 6.3%[78] - The total non-current liabilities increased from HKD 49.902 billion in 2020 to HKD 56.212 billion in 2021, reflecting a rise of approximately 12.5%[88] Strategic Initiatives - The company plans to leverage synergies from its four-network integration and explore new opportunities in the Greater Bay Area[7] - Hong Kong Telecom aims to enhance its market leadership in fiber broadband, mobile communications, and pay TV services[7] - The company plans to introduce more innovative products and services to enhance its competitive advantage in the market[8] - The company plans to continue investing in enhancing digital capabilities and expanding its 5G network, considering current market conditions[46] Employee and Governance - The company employed over 15,400 staff globally as of December 31, 2021, down from 16,300 in 2020, with approximately 67% based in Hong Kong[54] - The company has established performance bonus and reward programs to incentivize employees based on overall performance metrics[54] - The company maintained compliance with the corporate governance code, with some exceptions noted regarding the establishment of independent committees[64]