HKT(HK:06823)2024-02-22 08:47Revenue Growth - Total revenue (excluding mobile communication product sales) increased by 3% to HKD 31.37 billion, driven by strong demand for digital transformation projects and a recovery in roaming revenue [4]. - Total revenue for 2023 reached HKD 34,330 million, a 1% increase compared to 2022's HKD 34,125 million [12]. - Total revenue for the year ended December 31, 2023, was HKD 34,330 million, a slight increase of 0.6% from HKD 34,125 million in 2022 [61]. - The external revenue from telecommunications services was HKD 22,867 million in 2023, up from HKD 22,705 million in 2022, indicating a growth of approximately 0.7% [80]. - The external revenue from mobile communications reached HKD 10,621 million in 2023, compared to HKD 10,556 million in 2022, marking an increase of about 0.6% [80]. EBITDA and Profitability - EBITDA increased by 3% to HKD 13.40 billion, supported by cost optimization measures including the deployment of artificial intelligence applications [4]. - EBITDA for 2023 was HKD 13,400 million, reflecting a 3% growth from HKD 13,064 million in 2022 [12]. - The EBITDA margin for telecommunications services improved to 39% in 2023, compared to 38% in 2022 [12]. - EBITDA for mobile communication services rose by 5% to HKD 50.57 billion, with a margin of 61%, reflecting improved operational efficiency [28]. - Profit attributable to shareholders increased by 2% to HKD 4.991 billion from HKD 4.901 billion in the previous year [39]. Cash Flow and Financing - Adjusted cash flow increased by 3% to HKD 5.80 billion, despite a 17% rise in financing costs [4]. - Adjusted free cash flow for 2023 was HKD 7,663 million, representing a 16% increase from HKD 6,613 million in 2022 [13]. - The company reported a net financing cost of HKD 2,134 million for 2023, a significant increase of 34% compared to HKD 1,589 million in 2022 [12]. - The group reported a net cash inflow from operations and has the ability to raise additional debt financing, with unutilized bank credit totaling HKD 12,733 million as of December 31, 2023 [73]. Customer Base and Services - Mobile communication service revenue grew by 5% to HKD 8.35 billion, reflecting a rapid recovery in roaming revenue and strong growth in the postpaid customer base [5]. - The number of 5G service customers reached nearly 1.4 million, accounting for 41% of the total postpaid customer base [5]. - The number of postpaid users increased by 3% to 3,428 thousand in the second half of 2023, compared to 3,383 thousand in the same period of 2022 [14]. - The number of Now TV subscribers increased by 2% to 1.429 million, despite a decrease in revenue from the pay-TV service to HKD 2.365 billion [20]. - The number of users for the payment platform increased to 3.77 million, a 4% increase from 3.63 million in the same period last year [30]. Cost Management - The company’s operating costs, excluding depreciation and amortization, decreased by 12% to HKD 3,476 million in 2023 from HKD 3,967 million in 2022 [12]. - Sales costs rose by 2% to HKD 17.454 billion, consistent with revenue growth during the year [32]. - Operating costs decreased by 12% to HKD 3.476 billion, improving the overall operating cost to revenue ratio to 10.1% from 11.6% last year [33]. Dividends and Shareholder Returns - The final dividend per share unit is proposed at HKD 0.4444, bringing the total annual dividend to HKD 0.7649 [9]. - The total dividend proposed for 2023 is HKD 3,369 million, up from HKD 3,271 million in 2022, marking an increase of about 3% [90]. - The interim distribution of HKD 32.05 per share was paid to shareholders on September 2023 [52]. Strategic Initiatives and Future Outlook - The company plans to leverage advanced technologies such as generative artificial intelligence to enhance efficiency and achieve significant growth in 2024 [10]. - The company aims to explore new paths for its diversified business portfolio in response to the economic environment while continuing to innovate and enhance service offerings [10]. - The company plans to continue investing in new technologies and market expansion strategies to drive future growth [68]. Operational Metrics - The number of FTTH connections exceeded 1 million, with a net increase of 38,000 connections, representing a 4% growth [17]. - Local data revenue recorded a significant growth of 10%, with total contract value from enterprise customers exceeding HKD 4 billion by year-end [7]. - Local telecommunications service revenue increased by 2% to HKD 16.87 billion for the year ended December 31, 2023, driven by a 6% increase in local data service revenue to HKD 12.82 billion [16]. Corporate Governance and Compliance - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2023, ensuring compliance with accounting policies [58]. - The company has maintained high standards of corporate governance, adhering to the applicable principles of the Corporate Governance Code [59]. - There were no purchases, sales, or redemptions of listed securities by the company or its subsidiaries during the year ending December 31, 2023 [57].