HKT(HK:06823)2022-08-11 08:31Financial Performance - Total revenue increased by 3% to HKD 16.157 billion, with service revenue from mobile communications rising by 2% to HKD 3.647 billion[3] - EBITDA totaled HKD 5.834 billion, reflecting a 2% increase compared to the previous year[5] - Adjusted cash flow increased by 2% to HKD 2.377 billion, with basic earnings per unit at HKD 0.2522[6] - Total revenue for the six months ended June 30, 2022, was HKD 16,157 million, representing a 3% increase compared to the same period last year[10] - EBITDA for the same period was HKD 5,834 million, reflecting a 2% increase year-over-year[13] - The company reported a 39% increase in other business revenue, reaching HKD 567 million for the six months ended June 30, 2022[10] - Profit attributable to equity holders increased by 1% to HKD 1.910 billion for the six months ended June 30, 2022[42] - The net profit for the same period was HKD 1,912 million, slightly up from HKD 1,908 million in 2021, reflecting a growth of 0.2%[65] - The total comprehensive income for the period was HKD 1,918 million, up from HKD 1,803 million, indicating a growth of 6.4%[65] Revenue Segmentation - The telecommunications services business revenue grew by 5% to HKD 11.596 billion, driven by increased adoption of high-speed fiber-to-the-home services[5] - Local telecommunications service revenue increased by 3% to HKD 7.968 billion, driven by a 6% growth in local data service revenue to HKD 5.685 billion, which accounted for 71% of local telecommunications revenue[20] - Total telecommunications service revenue rose by 5% to HKD 11.596 billion, with international telecommunications service revenue increasing by 9% to HKD 3.628 billion[20] - The telecommunications services segment generated external revenue of HKD 11,033 million, while mobile communications contributed HKD 4,561 million, and other businesses accounted for HKD 563 million[89] Customer Metrics - The number of mobile communication users reached 4,817 thousand, showing a 1% increase compared to the previous quarter[14] - The number of prepaid users increased by 25% to 1,512 thousand compared to the previous year[14] - The number of postpaid customers grew by 42,000 to 3.305 million, representing a 1% increase year-on-year[30] - The number of 5G customers nearly doubled to 867,000 by June 30, 2022, and further increased to 918,000 by July, accounting for 28% of the postpaid customer base[30] - Broadband customer base increased to 1.64 million lines, with FTTH connections rising by 5% to 964,000 lines[22] - The number of home Wi-Fi customers grew by 6% to 339,000, representing 23% of the overall consumer broadband market[22] Cost and Expenses - The cost of sales rose to HKD 8,134 million, up 7.7% from HKD 7,550 million in the previous year[63] - Sales costs increased by 8% to HKD 8.134 billion, reflecting rising costs associated with international voice revenue and enterprise project deliveries[35] - Operating costs decreased by 8% to HKD 2.189 billion, improving the overall operating cost ratio to 13.5% from 15.2%[36] - The depreciation and amortization expenses for the six months ended June 30, 2022, were HKD 2.83 billion, compared to HKD 2.75 billion for the same period in 2021[92] Debt and Financing - As of June 30, 2022, Hong Kong Telecommunications' total debt amounted to HKD 443.43 billion, an increase from HKD 438.86 billion on December 31, 2021[43] - The company's cash and short-term deposits totaled HKD 20.39 billion as of June 30, 2022, down from HKD 28.83 billion on December 31, 2021[43] - Net financing costs decreased by 12% to HKD 561 million compared to the previous period[10] - The company’s financing costs for the six months ended June 30, 2022, were HKD 627 million, an increase from HKD 561 million in 2021[92] - The company maintained a credit rating of "Baa2" from Moody's and "BBB" from S&P Global Ratings as of June 30, 2022[44] Dividends and Shareholder Returns - The company announced an interim distribution of HKD 0.3136 per unit for the six months ended June 30, 2022[6] - The interim dividend declared for the six months ended June 30, 2022, was HKD 31.36 per share[54] - The company declared an interim dividend of HKD 31.36 per share for the six months ended June 30, 2022, an increase from HKD 30.70 per share in 2021, totaling HKD 2.38 billion[96] Strategic Initiatives - The company is exploring opportunities in the metaverse through a partnership with PCCW and The Sandbox[8] - The company has established a 5G mobile network base station at a community isolation facility to support healthcare efforts during the pandemic[8] - The company aims to enhance its digital ecosystem and capitalize on potential Web3 opportunities[8] - The company launched the "2500M Fiber to Home Service" to enhance user experience and introduced a comprehensive service package for remote work[21] Compliance and Governance - The audit committees reviewed the unaudited interim financial information for the six months ended June 30, 2022, ensuring compliance with accounting policies[58] - The group’s financial statements have been prepared in accordance with Hong Kong Accounting Standards, with no significant impact from the adoption of revised standards effective from January 1, 2022[77] - The group has not early adopted any new or revised Hong Kong Financial Reporting Standards that are not yet effective during the reporting period[78]