PresentationLadies and gentlemen, welcome to the PCCW 2025 Annual Results Announcement. Presenting today are Ms. Susanna Hui, Acting Group Managing Director and Group CFO; and Mr. Michael Wong, Head of Investor Relations. Over to Susanna, please.Hon Hing HuiActing Group MD, Group CFO & Executive Director Thank you. Despite global trade uncertainties and cautious consumer sentiment, the Hong Kong economy recovered steadily throughout 2025. And against this market backdrop, PCCW delivered a resilient performa ...

Core Viewpoint - The company reported a year-on-year increase in comprehensive income and EBITDA, while also reducing its losses compared to the previous year, indicating a positive trend in financial performance [1] Financial Performance - The comprehensive income for the year ending December 31, 2025, was HKD 40.252 billion, representing a 7% increase year-on-year [1] - The comprehensive EBITDA was HKD 13.290 billion, showing a 3% growth compared to the previous year [1] - The loss attributable to equity holders was HKD 0.253 billion, an improvement from a loss of HKD 0.300 billion in the prior year [1] - The proposed final dividend is HKD 0.284 per ordinary share, leading to a total annual dividend of HKD 0.3825 per ordinary share [1] Revenue Breakdown - Revenue from telecommunications in Hong Kong grew by 5% to HKD 36.553 billion [1] - OTT business revenue increased by 5% to HKD 2.579 billion [1] - Revenue from free television and related businesses was HKD 1.034 billion [1] Digital and Broadcasting Performance - The local broadcasting business, ViuTV, received positive reviews from both audiences and critics, solidifying its position as a preferred platform for young viewers in Hong Kong [1] - The number of digital subscribers grew by over 3.6% to 3.4 million, with viewing time increasing significantly by 6.7%, reflecting the enhanced appeal of the content [1]

Group 1 - The core viewpoint of the article highlights the growth in Viu's paid user base and revenue, with a significant increase in both subscription and advertising revenue by 27% [1] - Viu's paid user count reached 13.8 million, while ViuTV's digital membership rose to 3.3 million, indicating strong user engagement and future plans for major events [1] - Total revenue for the reporting period increased by 7% to HKD 18.922 billion, driven by growth in telecommunications and OTT business [1] Group 2 - Telecommunications revenue in Hong Kong rose by 4% to HKD 17.322 billion, while OTT business revenue increased by 10% to HKD 1.194 billion [1] - EBITDA for the period grew by 6% to HKD 6.010 billion, with OTT business EBITDA surging by 51% to HKD 346 million [1] - The comprehensive profit for the period increased by 116% to HKD 758 million, and the loss attributable to equity holders narrowed to HKD 445 million [1]

Financial Performance - Consolidated revenue increased by 7% year-over-year to $2426 million[21] - Consolidated EBITDA increased by 6% year-over-year to $771 million[21] - HKT revenue increased by 4% year-over-year to $2221 million, with EBITDA up by 3% to $818 million[20] - OTT revenue increased by 10% year-over-year to $153 million, with EBITDA up significantly by 51% to $44 million[20] - Free TV & Related revenue was $44 million, with EBITDA at $6 million[20] OTT Business (Viu) - Viu maintained its position as the No 1 Asian OTT platform in GSEA with 138 million paid subscribers[17] - Viu's subscription and advertising revenues grew by 27% and 29% year-over-year respectively[42] - Viu's EBITDA margin expanded by 8 percentage points year-over-year to 29%[42] HKT Business - Mobile services revenue grew by 5% year-over-year[92] - Local data revenue grew by 11% year-over-year[92] - Broadband revenue grew by 3% year-over-year[92] Cost Efficiency and Capex - Operating expenses decreased by 5% year-over-year[110] - Capex to revenue ratio improved to 58%[115] Dividend - 2025 Interim Dividend per share is 977 HK cents[28]