PCCW (8) H1 2024 earnings summary

Executive summary

• Revenue grew 5% year-over-year to US$2,269 million (HK$17,698 million), driven by strong performance in Media, HKT, OTT, and Free TV segments.

• EBITDA increased 1% to US$727 million (HK$5,672 million), with margin stable at 32%.

• Viu paid subscribers reached 11.7 million, and ViuTV digital membership rose 6% to 3.2 million.

• Interim dividend of 9.77 HK cents per share declared, maintaining a prudent dividend policy.

• Loss attributable to equity holders narrowed to HK$462 million from HK$486 million year-over-year.

Financial highlights

• HKT revenue (excluding mobile product sales) rose 3% to US$2.01 billion (HK$15,683 million), with mobile services up 5% and broadband demand strong.

• OTT revenue up 12% to US$140 million (HK$1,089 million), with Viu revenue up 16% to US$122 million (HK$948 million); paid subscribers up 11% to 11.7 million.

• Free TV & Related Business revenue surged 23% to US$62 million (HK$480 million), with EBITDA up 10% to US$12 million (HK$91 million).

• Group capital expenditure was US$146 million (HK$1,142 million), with a capex-to-revenue ratio of 6.5%.

• EBITDA margins: HKT steady at 37%, OTT improved to 21%, Free TV at 19%.

Outlook and guidance

• Focus on profitable growth in video streaming and TV, leveraging HKT’s stability and digital transformation.

• Continued investment in content, technology, and 5G network expansion to drive engagement and market share.

• OTT business progressing toward cash flow breakeven and sustainable growth in the near to medium term.

• Management expects further margin improvement and cash flow breakeven for OTT business.