Pccw Limited · HKEX:8
Pccw — H1 2021 Earnings Presentation
32 slides from Pccw's earnings presentation, Aug 6, 2021
Slide 1: 2021 Interim Results
2021 INTERIM RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2021 August 6, 2021 – Hong Kong
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain “forward-looking statements” that are not historical in nature. These forward-looking statements, which include, without limitation, statements regarding PCCW's future results of operations, financial condition or business prospects, are based
Slide 3: Overview
Overview BG Srinivas Group Managing Director 3
Slide 4: Accelerated Growth Momentum
Accelerated Growth Momentum 29% OTT Business revenue growth 97% Free TV & Related Business revenue growth 51% PCCW Solutions revenue growth PCCW Solutions and OTT Business Strengthen SEA Presence 4
Slide 5: Financial Review
Financial Review Susanna Hui Group Chief Financial Officer 5
Slide 6: Financial Highlights
Financial Highlights (US$ million) H1’20 H1’21 % change Core Revenue 1 2,138 2,326 9% Core EBITDA 1 692 732 6% Revenue (US$ million) H1’20 H1’21 % change EBITDA (US$ million) H1’20 H1’21 % change HKT 1,872 2,006 7% HKT 711 733 3% OTT 64 83 29% OTT (10) (3) 75% Free TV 17 33 97% Free TV (12) (6) 54%
Slide 7: Solid Financial Performance
Solid Financial Performance Adjusted Funds Flow resumed healthy growth to US$298 million Interim Distribution of 30.70 HK cents per SSU HKT Revenue (US$ million) HKT EBITDA (US$ million) 2,006 + 7% yoy 733 + 3% yoy 711 1,872 158 27 Mobile product 124 196 sales revenue 263 266 458 459 +58% yoy Pay TV
Slide 8: Viu Fast Gaining Popularity and Approaching EBITDA Breakeven
Viu Fast Gaining Popularity and Approaching EBITDA Breakeven OTT Revenue (US$ million) OTT EBITDA (US$ million) Viu Revenue 83 8 64 62 8 42 (10) (3) + 35% yoy 75 H1’20 H1’21 56 H1’20 H1’21 Music and Others Video H1’20 H1’21 Viu revenue grew by 47% to US$62 million driven by Scale reached inflection
Slide 9: Revenue Doubled on the Back of Expanded Viewership
Revenue Doubled on the Back of Expanded Viewership ViuTV Revenue (US$ million) ViuTV EBITDA (US$ million) 33 9 + 300% yoy 17 3 + 66% yoy (12) (6) 24 14 340 Others H1’20 H1’21 Advertising H1’20 H1’21 Revenue doubled, ahead of plan EBITDA loss further improved Unique local content drove healthy growth
Slide 10: Strong Performance on All Fronts
Strong Performance on All Fronts Solutions Revenue (US$ million) Solutions EBITDA (US$ million) 370 +51% yoy +118% yoy 63 244 257 +38% yoy 29 43 185 39 Recurring 113 +91% yoy 20 Project based 59 (10) H1’20 H1’21 H1’20 H1’21 EBITDA 12% 17% Margin Revenue increased by 51% driven by successful implemen
Slide 11: Spending with Discipline and Effectiveness
Spending with Discipline and Effectiveness Core Operating Expenses (US$ million) Achieved core opex savings of 8% year-on-year 374 344 Core opex to revenue ratio improved to 15% 134 75 Now TV opex moved from Media segment to HKT in 1H21 Key initiatives include: 305 Digitizing business processes to i
Slide 12: Prudent Capex to Support Future Growth
Prudent Capex to Support Future Growth Core Capex (US$ million) Capex to revenue ratio was 7.2% Higher Mobile capex mainly due to expanding and 177 enriching our 5G network 168 Lower TSS capex in line with the capex cycle of our 15 extensive local fiber network and international cable 11 systems 8 O
Slide 13: Strong Liquidity
Strong Liquidity As of As of Dec 2020 Jun 2021 Gross Cash Undrawn Gross Cash Undrawn Debt Balance (5) Facilities Debt Balance (5) Facilities US$ million HKT 5,448 337 1,163 5,555 276 1,014 PCCW 867 101 1,001 595 171 1,202 Total 6,315 438 2,164 6,150 447 2,216 Core Gross Debt (1) / EBITDA (3) 4.12 x
Slide 14: Debt Maturity Profile
Debt Maturity Profile (US$ million) HKT As of June 30, 2021 1,329 779 HKT Bank Loans 750 HKT Bonds 500 573 500 500 213 300 1 103 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 PCCW1 PCCW Bank Loans 32 PCCW Bonds 300 13 100 150 Note: 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1) E
Slide 15: Shareholder Focused Dividend Policy
Shareholder Focused Dividend Policy PCPD 2021 Interim 31.24 32.18 DIS Dividend per share: 28.33 29.75 9.36 HK cents 25.00 Final 20.20 Dividend Per 22.33 23.00 23.00 Share 20.17 21.18 17.04 Interim 13.21 Dividend Per Share (HK cents) 6.99 7.96 8.16 8.57 8.91 9.18 9.18 9.36 2% YoY 2014 2015 2016 2017
Slide 16: Media Business
Media Business 16
Slide 17: OTT Business
Ovivu OTT Business
Slide 18: A Leader in Southeast Asia OTT Video Entertainment
A Leader in Southeast Asia OTT Video Entertainment (All data and information below have been provided and verified by Media Partners Asia) 1 st 2 nd 2 nd MONTHLY ACTIVE PAID STREAMING USERS SUBSCRIBERS MINUTES Q2 2021 MAUs, Mn Q2 2021 Paying Subscribers, Mn H1 2021 Streaming Minutes, Bn Viu Disney+*
Slide 19: Viu Continued High Growth in MAUs and Premium Subscriber Base
Viu Continued High Growth in MAUs and Premium Subscriber Base Strong Momentum in Ad & Subscription Revenue Growth 49.4 Million 7.0 Million Monthly Active Users Paid Subscribers 49.4 7.0 36.1 4.3 29.9 2.0 2.0 14.4 2018 H1 2019 H1 2020 H1 2021 H1 2018 H1 2019 H1 2020 H1 2021 H1 • Thailand and Indonesi
Slide 20: Strong Momentum in Dual Revenue Model
Strong Momentum in Dual Revenue Model Viu - Accelerated Growth in monetization H1 2021 YOY Revenue Growth 40% 47% Subscription Revenue Total $ Revenue 54% Advertising & Related Revenue Extensive Partnership Footprint – Increased Accessibility and Penetration Devices • Partnering with leading brands
Slide 21: Leadership in Asian Content & Expansion of Korean Originals
Leadership in Asian Content & Expansion of Korean Originals CONTINUED TO BE THE HUB OF ASIAN CONTENT CREATES FURTHER DIFFERENTIATION H1 Top Korean titles • Debut of Viu Original Korean drama series STRONG KOREAN LINEUP • Mr Queen, True Beauty, Penthouse series • Complementary to the largest selectio
Slide 22: Free TV & Related Business
© viuv Free TV & Related Business
Slide 23: Robust and Continued Growth in Viewership
Robust and Continued Growth in Viewership Expanding Viewership and Distribution Q3 Programs • Prime time average TVR increased 15% Y-o-Y 1 • Olympic Games Tokyo 2020 supplemented with a range • Digital streamviews increased 113% Y-o-Y 2 of team-based events and programs • Thriving advertising busine
Slide 24: Artiste Management Business Prospered
Artiste Management Business Prospered - Attributable to Rising Popularity of Our Artistes Diversified Revenue Streams Synergistic Impacts • Artiste-related advertisements: number of brands • Artistes’ rising popularity contributed to viewership increased 3 times Y-o-Y from 29 to over 90 in H1 growth
Slide 25: IT Solutions Business
PCCW Solutions’ IT Solutions Business
Slide 26: Revenue by Industry & Services
Revenue by Industry & Services H1’21 Revenue by Industry H1’21 Revenue by Services Others Business Process Enterprise BFSI Outsourcing Applications 1% Telecom Technical 2% 11% Digital, 19% Services 14% Cloud 30% Solutions & Infra- structure Travel & 23% Transportation 10% 9% High-Tech & Media 18% 50
Slide 27: Driving Enterprise Digital Transformation
Driving Enterprise Digital Transformation Next Generation Human Capital IT Infrastructure for Mobile Integrated Smart Mall Platform Management Solution Payment Services Driving HR digitalization with deployment of Facilitated AlipayHK to provide swift Implemented the LoRaWAN-based SAP SuccessF
Slide 28: Expanding Industry-specific IP Solutions Portfolio
Expanding Industry-specific IP Solutions Portfolio Infinitum Communications Suite is a cloud-native platform designed specifically for the communications service providers, with rich functionalities to automate and streamline the end-to-end selling, ordering and monetizing processes. The solution is
Slide 29: Industry Case Studies
Industry Case Studies Communications, Media & High-Tech Travel & Transportation Communications, Media & High-Tech A Media Organization Airport Authority Hong Kong China Mobile Provision of outsourcing services for its Provision of communications systems for the Extend the Planning Management S
Slide 30: Industry Case Studies
Industry Case Studies Public Sector Public Sector Banking, Financial Services & Insurance Government Agency in Singapore Hospital Authority An Insurance Company Solutions Provision of holistic managed services To supply, deliver and maintain the Enhance Next Generation Insurance Platform inclu
Slide 31: Awards and Recognition
Awards and Recognition IT Innovation Marketing Excellence Partner Recognition IT Application Excellence Awards Market Leadership in Digital Marketing Best SuccessFactors Partner Award 2020 2020 Greater Bay Area HKIM Market Leadership Award 2019/2020 SAP IT Advancement Awards Gold Stevie® Award – Mul
Slide 32: Summary
Summary HKT Media Solutions HKT will strengthen its focus on 5G Viu will continue to reinforce its PCCW Solutions will further grow its development to spur consumer and status as the hub of Asian content IP solution suites to facilitate the commercial adoption and with a compelling lineup of dramas,