PCCW (00008) H1 2025 Earnings Call August 01, 2025 05:00 AM ET Company ParticipantsHui Hon Hing - Executive Director, Acting Group Managing Director & Group CFOMarco Wong - Head - IROperatorLadies and gentlemen, welcome to PCCW twenty twenty five interim results announcement. Presenting today are miss Susana Hoy, acting group managing director and group chief financial officer and Mr. Marco Wong, Head of Investor Relations. Over to Susannah, please.Hui Hon HingGood afternoon. Thank you for joining the PCCW ...

Financial Data and Key Metrics Changes - PCCW reported a revenue increase of 7% to over US$2.4 billion and EBITDA growth of 6% to US$771 million [3] - HKT achieved a 4% revenue growth and a 3% increase in EBITDA, with adjusted fund flow also rising by 3% [3][12] - The overall EBITDA margin for HKT remained stable at 37% [12] Business Line Data and Key Metrics Changes - The OTT regional service recorded a 10% revenue growth and a 51% improvement in EBITDA [3][13] - View TV's revenue retreated in the first half due to event timing, but margins remained stable, with expectations for a rebound in the second half [3][4] - The talent management business saw increased international exposure for artists, contributing to overall business performance [10] Market Data and Key Metrics Changes - The OTT business experienced a 27% growth in subscription and advertising revenue, despite softer syndication and event revenue in the Middle East [13] - Digital membership for View TV grew by over 4% to reach 3,300,000, reflecting a younger audience segment [9] Company Strategy and Development Direction - PCCW is focused on leveraging digital infrastructure and AI to enhance customer service and drive digital transformation for enterprises [3] - The company aims to maintain its market leadership in the OTT space by optimizing content offerings and expanding partnerships [4][5] Management Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro environment but emphasized a commitment to delivering high-quality services and achieving profitable growth [2] - There are strong expectations for content performance in the second half, particularly with popular shows and concerts scheduled [3][8] Other Important Information - An interim dividend of HKD9.77 per share was declared, reflecting a prudent dividend policy aimed at sustainable growth [4] - HKT's gross debt decreased to US$5.57 billion, indicating successful deleveraging efforts [16] Q&A Session Summary Question: What are the expectations for View TV's performance in the second half? - Management expects View TV's performance to rebound in the second half due to a lineup of popular shows and concerts scheduled [3][4] Question: How is the company addressing the challenges in advertising revenue? - The company is expanding monetization opportunities through AVOD tiers and optimizing content offerings to attract advertisers [6][14] Question: What is the outlook for HKT's digital transformation solutions? - HKT is experiencing strong demand for its digital transformation solutions, which is driving revenue growth [11]

Financial Data and Key Metrics Changes - Revenues increased by 1.5% to €620,000,000 compared to the previous year [5] - Adjusted EBITDA grew by 2.5% to €99,000,000, with an EBITDA margin increase from 15.8% to 16% [5][29] - Net backlog decreased by 3.2% from €786,000,000 to €761,000,000 [5] Business Line Data and Key Metrics Changes - Made to measure segment increased by 8.6%, while superyacht segment grew by 26.5% [28] - Composite yachts above 80 feet accounted for more than half of the orders in Q2 [21] Market Data and Key Metrics Changes - The U.S. market showed a significant increase in negotiations, rising from €270,000,000 to €420,000,000 [34] - The Middle East market is recovering, with negotiations resuming after previous disruptions [68] Company Strategy and Development Direction - The company focuses on high-end markets, specifically above 24 meters, and aims to maintain a strong position despite market pressures [32][33] - A cost containment program has been implemented to enhance competitiveness and support profitability [60][78] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in achieving the guidance for 2025, despite market uncertainties and pressures from competitors [41] - The upcoming boat shows are expected to provide significant opportunities for sales and brand exposure [6][40] Other Important Information - The company has no debt and maintains over €100,000,000 in cash after paying dividends [42] - The Ravenna Shipyard is expected to be fully operational by October, enhancing production capabilities [40] Q&A Session Summary Question: How do you feel about the news on tariffs in the U.S. market? - Management indicated that tariffs are manageable and do not significantly impact the company, as most products do not have an American flag [47][49] Question: What gives you confidence to reach the 16.5% adjusted EBITDA margin guidance? - Confidence stems from a favorable product mix and a cost containment program that has been implemented [60] Question: Is the increase in order intake driven by a specific region? - The increase is widespread, with notable recovery in the Middle East and the U.S. market returning to normal [68] Question: Can you elaborate on the ongoing cost-cutting initiatives? - The company is reducing fixed costs by adjusting production rates and postponing non-essential expenses, with a goal to cut approximately 5% of fixed costs [78]

Financial Data and Key Metrics Changes - Sales increased by 9.9% year on year to approximately $63 million [2] - Gross profit grew by 10.1% year on year to about $35 million, with a gross profit margin of 55.5% [2] - Profit before tax rose by 17% year on year to $26.6 million, while net profit increased by 13.4% year on year to $21.7 million [3] - Diluted EPS was $1.96 per share, with an interim dividend declared at the same payout ratio of 80% as in the past [3] Business Segment Data and Key Metrics Changes - Sales from the Fixed First Connectivity segment decreased by 13% year on year to $7.6 million [4] - Sales from the Mobile First Connectivity segment increased by 14.4% year on year to $36.8 million [4] - Warranty and support services revenue grew by 6.9% year on year to $13.4 million, while software licenses revenue surged by 33.8% year on year to about $5 million [4] Market Data and Key Metrics Changes - Sales in the EMEA region increased by 39.2% year on year to $20.5 million [5] - Asia Pacific sales rose by 44% year on year to $5.9 million, while sales in other regions, mainly Australia, increased by 25% year on year [5] - Sales to North America decreased by 6.4% year on year to $34 million due to uncertainties with trade policies [5] Company Strategy and Development Direction - The company is optimistic about the growth in the EMEA region, which is expected to become a strong growth driver [11] - New product launches are planned, including innovative products that have no similar offerings in the market [13] - The company aims to expand its software offerings and create new subscription packages to enhance its ecosystem [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall demand for products in North America despite temporary shipment limitations [5] - The company is focusing on building dedicated products for non-US markets to enhance competitiveness [40] - Management emphasized the importance of creating value for customers and the long-term goal of becoming a connectivity company rather than just a networking company [117] Other Important Information - Recurring revenue increased by 12.5% year on year, accounting for 28.1% of total sales [6] - The number of devices with subscriptions increased by almost 18% year on year, with a take-up rate of 36.5% [6] - The company maintains a healthy balance sheet with a net cash balance of $53 million as of June 2025 [10] Q&A Session Summary Question: Can you elaborate on the situation regarding the US markets and shipments? - Management clarified that shipments were temporarily halted due to uncertainties about tariffs but have since fully resumed [20][22] Question: How significant is the new partnership with Iridium compared to Starlink? - Management indicated that while Iridium is trusted by traditional customers, Starlink has stronger momentum, and the revenue from Iridium is expected to be smaller [24][26] Question: What changes have occurred in the product structure, especially with Starlink? - The company now offers a full range of Starlink products and plans to launch a new integrated product called AntennaMax [32][34] Question: What is driving the strong growth in the EMEA region? - The transportation market in Europe is undergoing extensive upgrades, creating demand for connectivity solutions [39][40] Question: What steps have been taken to increase the subscription take-up rate? - Increased awareness among partners and addressing bottlenecks in the purchasing management portal are key strategies [43][44] Question: How does the company view the future of edge computing? - Management sees edge computing as a trend that will expand the ecosystem and enhance product stickiness, but revenue implications are still being explored [101][104] Question: What is the monetization strategy for the SpeedFusion Connect app? - The current focus is on user adoption rather than immediate monetization, with plans to explore charging in the future [115] Question: How does the company plan to position itself in the next 5 to 10 years? - The long-term goal is to become a connectivity company, expanding beyond just networking products [117]

Financial Data and Key Metrics Changes - Q2 2025 income increased by 15% year-on-year, excluding notable items, driven by double-digit growth across Global Banking, Global Markets, and Wealth Solutions [2][3] - Operating income for the group was $5.5 billion, up 14% or 15% excluding notable items [4] - Profit before tax for the quarter was $2.4 billion, up 34%, with a return on tangible equity (RoTE) of 19.7% [5][14] - Earnings per share for the first half was up 41% year-on-year, with a tangible net asset value (TNAV) per share of $16.8, up 16% year-on-year [14][15] Business Line Data and Key Metrics Changes - Corporate and Institutional Banking (CIB) income for the quarter was $3.3 billion, up 9%, driven by a 47% increase in Global Markets income [15] - Wealth and Retail Banking (WRB) income was up 4% to $2.1 billion, with Wealth Solutions income up 20% [17][18] - Non-interest income (Non NII) grew by 31% year-on-year, driven by strong performance in Global Markets and Wealth Solutions [7][8] Market Data and Key Metrics Changes - Underlying customer deposits increased by 4% or $19 billion in the quarter, with strong net new money from affluent clients [12] - Risk-weighted assets (RWA) increased by $6 billion in the quarter, with over half attributed to foreign exchange impacts [13][14] - The overall credit portfolio remained resilient, with a loan loss rate of 12 basis points in Q2, benefiting from net recoveries in CIB [11][12] Company Strategy and Development Direction - The company announced a new share buyback of $1.3 billion, aiming to exceed $8 billion in capital returns from 2024 to 2026 [3][14] - The strategy focuses on supporting clients through a diversified network and enhancing digital asset offerings [22][28] - The company is committed to sustainable finance, targeting to mobilize $300 billion by 2030 [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying trends supporting the business, despite external uncertainties [38] - The outlook for net interest income (NII) is expected to decline by a low single-digit percentage year-on-year, with a recovery in HIBOR anticipated later in the year [7][21] - Management remains optimistic about the growth of Wealth Solutions and the transition of deposits into assets under management [52][70] Other Important Information - The Fit for Growth program has achieved $500 million in run-rate savings, with a revised phasing of spending expected to be between 35% to 45% in 2025 [9][10] - The company is actively engaging in digital asset solutions, including a joint venture to issue a Hong Kong dollar-backed stablecoin [29][64] Q&A Session Summary Question: Insights on net interest income and deposit performance - Management provided details on HIBOR assumptions and the sustainability of deposit momentum, indicating that current deposits may transition into assets under management as uncertainty decreases [34][36][46] Question: Wealth Solutions and revenue guidance - Management acknowledged the current reliance on deposits but expressed confidence in the eventual shift towards higher-margin products as clients mature [50][52] Question: SC Ventures monetization and capital distribution - Management emphasized the strategic nature of SC Ventures and the focus on exceeding capital distribution targets, highlighting strong capital generation capabilities [73][84]

Financial Data and Key Metrics Changes - Q2 income increased by 15% year on year, excluding notable items, driven by double-digit growth across Global Banking, Global Markets, and Wealth Solutions [1][2] - Operating income for the Group was $5.5 billion, up 14% or 15% excluding notable items, reflecting strong performance in CIB and WRB [3][4] - Profit before tax for the quarter was $2.4 billion, up 34%, with a return on tangible equity (RoTE) of 19.7% [4][13] - Earnings per share for the first half increased by 41% year on year, with TNAV per share up 16% year on year to $16.8 [13][14] Business Line Data and Key Metrics Changes - CIB income for the quarter was $3.3 billion, up 9%, driven by a 47% increase in Global Markets income [14][15] - Wealth and Retail Banking income was up 4% to $2.1 billion, with Wealth Solutions income increasing by 20% [16] - Non-NII grew by 31% year on year, driven by strong performance in Global Markets and Wealth Solutions [6][19] Market Data and Key Metrics Changes - Underlying customer deposits increased by 4% or $19 billion in the quarter, with strong net new money from affluent clients [11][16] - Intra ASEAN corridor income increased by 17%, driven by FX and commodity trading [22] - The Group's affluent AUM reached $420 billion at the end of the first half of 2025, with an 11% CAGR since 2016 [25] Company Strategy and Development Direction - The company is focused on delivering a cross-border strategy to support client needs, with a strong emphasis on digital asset solutions and sustainable finance [21][26][30] - The Fit for Growth program aims to simplify, standardize, and digitize operations, with a target of achieving $1.5 billion in savings [8][90] - The company is committed to exceeding $8 billion in capital returns from 2024 to 2026, with a new share buyback of $1.3 billion announced [2][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying trends supporting the business, despite uncertainties in the external environment [36][41] - The outlook for net interest income (NII) is expected to be down by a low single-digit percentage year on year, with guidance for total income growth in 2025 upgraded to the bottom of the 5% to 7% range [6][19][20] - The company remains optimistic about the demand for origination in global banking, with a strong pipeline and growth in corporate lending [24] Other Important Information - The company achieved a significant gain of $238 million from the Solve India transaction, retaining a non-controlling interest in the acquiring entity [17][18] - The company is actively engaging in the digital asset space, including a joint venture to issue a Hong Kong dollar-backed stablecoin [27][29] Q&A Session Summary Question: Insights on net interest income and deposit performance - Management provided details on HIBOR assumptions and the sustainability of deposit momentum, indicating that current deposit growth is a positive sign for future asset management [33][34][36][44] Question: Wealth Solutions and net new money flow - Management acknowledged the current reliance on deposits but expressed confidence that clients will eventually shift towards higher-margin wealth products as uncertainty decreases [50][52][70] Question: Stablecoins and digital assets - Management discussed the strategic importance of digital assets and stablecoins, emphasizing their readiness to provide services in this evolving market [61][63][65] Question: Cost management and Fit for Growth program - Management clarified that the Fit for Growth program is a transformation initiative rather than a cost-cutting measure, with a focus on long-term efficiency and savings [87][90]

Financial Data and Key Metrics Changes - Total volumes decreased by 6.1% and revenue decreased by 5.6% in the first half of 2025, while revenue per hectoliter increased by 0.5% [8][9] - Normalized EBITDA decreased by 8% and normalized EBITDA margin contracted by 82 basis points [8][9] - In the second quarter, total volumes and revenue decreased by 6.2% and 3.9% respectively [8] Business Line Data and Key Metrics Changes - In China, volumes decreased by 7.4% in the second quarter, with revenue decreasing by 6.4% and revenue per hectoliter increasing by 1.1% [10] - In South Korea, volumes were impacted by shipment phasing, but the company continued to gain market share in both on-premise and in-home channels [6][13] - In India, the Budweiser brand grew ahead of the industry, delivering double-digit revenue growth and significant EBITDA margin improvement [13][74] Market Data and Key Metrics Changes - In APAC West, volumes and revenue decreased by 6.9% and 7.1% respectively, with normalized EBITDA decreasing by 8.8% [9] - The contribution of the in-home channel to volumes and revenue increased, with premium and super premium portfolio weights exceeding those in the Chinese restaurant channel [11] - The Indian market showed strong growth momentum, with the premium and super premium portfolio growing by double digits [74] Company Strategy and Development Direction - The company continues to invest in mega brands and focus on expanding the in-home channel while enhancing trade execution [5][20] - A channel expansion strategy is in place, focusing on premiumization in the in-home channel [11] - The company is committed to maintaining a sound balance sheet and disciplined financial practices [15] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges in China, particularly in the restaurant channel, and expects volume headwinds to continue into the third quarter [20][57] - The company remains focused on enhancing execution of mega brands and expanding distribution in the in-home channel [58] - Management expressed confidence in the long-term growth potential of the Indian market, driven by premiumization and favorable regulatory changes [74] Other Important Information - The company reported a net cash position of $2.4 billion as of June 30, 2025 [15] - An internal restructuring led to a non-underlying income tax of $53 million, which is expected to have no further impact on financials [83] Q&A Session Summary Question: Impact of anti-extravagance campaign on China - Management acknowledged a slowdown in the Chinese restaurant channel and indicated that the impact would continue into the third quarter [20] Question: Update on South Korea customs tax dispute and anti-dumping duties in Taiwan - The customs tax dispute is ongoing, and management is committed to defending the matter [25] - The impact of anti-dumping duties in Taiwan is still uncertain, and management is monitoring the situation closely [27] Question: Progress on inventory destocking in China - Management reported that inventory levels are lower than the previous year and expect a more normalized base by the end of the year [32] Question: In-home channel penetration and expansion plans - The in-home channel is expected to continue growing, with plans to enhance distribution and execution [39] Question: Market share strategy in Guangdong - Management emphasized the importance of expanding coverage in the in-home channel and improving execution to regain market share [49] Question: Core plus segment performance and competition - Management acknowledged competition pressures in the core plus segment and outlined plans to enhance brand power and distribution [61] Question: Margin outlook in South Korea - Management expressed confidence in future margin recovery driven by pricing, operational efficiencies, and premiumization [71] Question: Trends in the Indian market - The Indian market is experiencing strong growth, particularly in the premium segment, with favorable regulatory changes expected to further boost growth [74]

Financial Data and Key Metrics Changes - Total volumes decreased by 6.1% and revenue decreased by 5.6% in the first half of 2025, while revenue per hectoliter increased by 0.5% [8][9] - Normalized EBITDA decreased by 8% and normalized EBITDA margin contracted by 82 basis points [8][9] - In the second quarter, total volumes and revenue decreased by 6.2% and 3.9% respectively [8] Business Line Data and Key Metrics Changes - In China, volumes decreased by 7.4% in the second quarter, with revenue decreasing by 6.4% and revenue per hectoliter increasing by 1.1% [11] - In South Korea, volumes were impacted by shipment phasing, but market share continued to grow in both on-premise and in-home channels [6][14] - In India, the Budweiser brand grew ahead of the industry, contributing to double-digit revenue growth and significant EBITDA margin improvement [14][78] Market Data and Key Metrics Changes - In APAC West, volumes and revenue decreased by 6.9% and 7.1% respectively, with normalized EBITDA decreasing by 8.8% [10] - The in-home channel's contribution to volumes and revenue increased, with premium and super premium portfolio weights exceeding those in the restaurant channel [12][42] - The Indian market continues to show strong growth momentum, with premiumization driving performance [78] Company Strategy and Development Direction - The company is focusing on investing in mega brands and expanding the in-home channel to navigate current challenges and pursue long-term growth [5][6] - A channel expansion strategy is being implemented to enhance premiumization in the in-home channel [12] - The company is committed to maintaining a sound balance sheet while pursuing disciplined financial practices and capital allocation priorities [16] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges in China, particularly in the restaurant channel, but remains focused on enhancing execution and expanding distribution [21][60] - The company expects volume headwinds to continue into the third quarter, with potential for improvement in the fourth quarter due to easier comparisons [60] - Management emphasized the importance of premiumization and innovation in driving future growth [78][81] Other Important Information - The company reported a net cash position of $2.4 billion as of June 30, 2025 [16] - An internal restructuring led to a $53 million non-underlying income tax charge, which is not expected to impact future financials significantly [87][88] Q&A Session Summary Question: Impact of anti-extravagance on the catering business in China - Management acknowledged a slowdown in the Chinese restaurant channel and indicated that the impact would continue into the third quarter, focusing on mega brand investments and in-home channel expansion [20][21] Question: Update on South Korea customs tax dispute and anti-dumping duties in Taiwan - The customs tax dispute is ongoing, with no new updates, while the impact of anti-dumping duties in Taiwan is still being assessed [26][28] Question: Progress on inventory destocking in China - Management reported proactive inventory management, with current levels lower than the previous year, and expects a more normalized base by the end of the year [35][36] Question: In-home channel penetration and expansion plans - The company sees significant opportunities in the in-home channel, with plans to enhance distribution and execution to capture market share [38][42] Question: Market share strategy following pricing hikes in Korea - Management indicated that the pricing strategy is aligned with brand strength and innovation, with a focus on maintaining commercial momentum [72][101] Question: Trends in the Indian market - The Indian market is experiencing strong growth, particularly in the premium segment, with ongoing efforts to improve productivity and capitalize on regulatory changes [78][81]

Financial Data and Key Metrics Changes - The company reported a 4% growth in revenue, exceeding USD 2.2 billion, with EBITDA improving by 3% to USD 818 million [3][20] - The Adjusted Funds From Operations (AFF) grew by 3% to USD 328 million, leading to an interim dividend declaration of HKD 33.8 per share [3][20] Business Line Data and Key Metrics Changes - The enterprise segment saw an 11% year-on-year revenue growth, driven by a 14% increase in cloud projects and a 6% growth in high bandwidth fiber lines [11][20] - Mobile services revenue grew by 5%, with a significant increase in roaming revenue by 7%, reaching 104% of pre-pandemic levels [8][24] - Fixed broadband subscriber base grew by over 140%, contributing to a 3% overall growth in fiber users [10][21] Market Data and Key Metrics Changes - The China revenue grew by 13%, supported by demand for SD WAN services and data center uptake by Mainland Chinese entities [13] - The mobile business added 45,000 new customers, with a 21% increase in 5G subscribers, reaching a penetration rate of 54% [9][25] Company Strategy and Development Direction - The company is focusing on AI technology to enhance customer offerings and improve operational efficiency, achieving a 7% cost savings across the overall cost base [4][18] - Continued investment in digital infrastructure, including a 100 terabit core backbone network and expansion of 5G capabilities [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about enterprise growth, targeting 10% to 12% for the full year, supported by a healthy project pipeline and economic recovery in Hong Kong [35][36] - The company anticipates sustained growth in roaming revenue due to increased consumer outbound travel and commercial activities [37][38] Other Important Information - The company achieved a stable EBITDA margin of 37% and improved its gross debt to EBITDA ratio to 3.11x [20][31] - The company maintains a BBB investment grade rating and has sufficient liquidity to manage upcoming bond maturities [32][33] Q&A Session Summary Question: What is the guidance for interest costs in the second half? - Management expects full-year interest savings to be at least 25% to 30% assuming no significant spikes in interest rates [34] Question: Will enterprise growth of 11% be maintained for the full year 2025? - Management is optimistic about maintaining 10% to 12% growth for the full year, supported by a healthy pipeline and economic recovery [35][36] Question: Do you expect strong roaming revenue growth to be maintained for the remainder of 2025? - Management is positive about maintaining growth in roaming revenue due to increased consumer and commercial activities [37][38] Question: Is it possible to capitalize on low interest rates through refinancing into more floating debt? - Management indicated a willingness to leverage low rates while maintaining a prudent balance between fixed and floating debt [40] Question: What is the outlook for working capital in the second half? - Management expects better working capital management in the second half, as the first half typically requires higher funding [41] Question: Is there guidance for full-year growth in AFF? - Management is optimistic that AFF growth will exceed 3% for the full year [42]

Financial Data and Key Metrics Changes - The company reported a 4% growth in total revenue, exceeding USD 2.2 billion, with EBITDA improving by 3% to USD 818 million and AFF growing to USD 328 million [3][20][28] - The interim dividend declared was HKD 33.8 per share [3] - The gross debt decreased to USD 5.57 billion, improving the gross debt to EBITDA ratio to 3.11x [30] Business Line Data and Key Metrics Changes - The enterprise segment saw an 11% year-on-year revenue growth, driven by a 14% increase in cloud projects and a 6% growth in high bandwidth fiber lines [10][21] - Mobile services revenue grew by 5%, with a net addition of 45,000 customers and an ARPU increase to USD 193 [7][23] - Fixed broadband subscriber base grew by over 140%, contributing to a 3% increase in fiber users [9][21] Market Data and Key Metrics Changes - China revenue grew by 13%, supported by demand for SD WAN services and data center uptake [12] - Roaming revenue increased by 7%, reaching 104% of pre-pandemic levels, with active roaming penetration rising to 59% [7][23] - The number of 5G subscribers reached nearly 1.9 million, representing a 21% year-on-year increase [8][24] Company Strategy and Development Direction - The company is focusing on AI technology to enhance customer offerings and improve operational efficiency, achieving a 7% cost savings across the overall cost base [4][18] - Investments in digital infrastructure, including a 100 terabit core backbone network, are aimed at supporting high bandwidth requirements for AI and cloud computing [5][10] - The company is expanding its digital ecosystem through loyalty platforms and telemedicine services, targeting customer acquisition and retention [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about enterprise growth, targeting 10% to 12% for the full year, supported by a healthy project pipeline and economic recovery in Hong Kong [35][36] - The company anticipates continued growth in roaming revenue due to increased travel activities and mega events [37][38] - Management highlighted the positive impact of lower interest costs and a strengthened balance sheet on future growth prospects [18][34] Other Important Information - The company received an MSCI AA ESG rating for the fifth consecutive year, reflecting its commitment to sustainability and community engagement [17] - The company is actively managing its working capital, expecting improvements in the second half of the year [41] Q&A Session Summary Question: What is the guidance for interest costs in the second half? - Management expects full-year interest savings to be at least 25% to 30% [34] Question: Will enterprise growth of 11% be maintained for the full year 2025? - Management is optimistic, targeting 10% to 12% growth for the full year [35][36] Question: Do you expect strong roaming revenue growth to be maintained for the remainder of 2025? - Management is positive about maintaining growth in roaming revenue due to increased travel and events [37][38] Question: Is it possible to capitalize on low interest rates through refinancing into more floating debt? - Management indicated a willingness to leverage low rates while maintaining a prudent balance [39][40] Question: What is the outlook for working capital in the second half? - Management expects better working capital management in the second half [41] Question: Is there guidance for full-year growth in AFF? - Management is optimistic that growth will be better than 3% [42]