Pccw Limited · HKEX:8
Pccw — H1 2009 Earnings Presentation
23 slides from Pccw's earnings presentation, Aug 20, 2009
Slide 1: 2009 Interim Results
2009 Interim Results For the period ended June 30, 2009 August 20, 2009 - Hong Kong 0
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 Alex Arena Group Managing Director 2
Slide 4: 2009 H1 Financial Performance
2009 H1 Financial Performance (US$ million) H1’08 H1’09 % Change Revenue 1,458 1,638 + 12% Core 1,379 1,342 - 3% Business* EBITDA 441 460 + 4% Core - 2% 432 421 Business* Profit Attributable 84 to Equity Holders 84 Stable * Core business includes telecom, media and ICT businesses 3
Slide 5: Financial Review
Financial Review Susanna Hui Group Chief Financial Officer 4
Slide 6: Core and PCPD Results
Core and PCPD Results (US$ million) Core Business* PCPD Revenue EBITDA Profit Attributable to Equity Holders % + 4% + 12 Stable 1,638 460 84 84 1,458 441 296 9 39 11 79 432 421 85 1,379 1,342 73 (1) H1’08 H1’09 H1’08 H1’09 H1’08 H1’09 * Core business includes telecom, media and ICT businesses 5
Slide 7: Core Revenue by Segment
Core Revenue by Segment (US$ million) Core Revenue TSS Breakdown - 3% y-o-y Local Telephony 293 273 - 7% TSS 1,379 1,342 Local Data 310 322 + 4% International 245 232 - 5% Mobile Others 248 230 - 7% TV & Content H1’08 H1’09 PCCW Solutions 1,096 1,057 TSS Other Businesses - 4% Eliminations 110 106 -
Slide 8: Cost Efficiency
Cost Efficiency Core Operating Expenses (US$ million) 5% Savings 360 343 TSS Core Opex to Revenue Ratio Mobile TV & Content 26.1% 25.6% 267 239 PCCW Solutions Other Businesses H1’08 H1’09 Eliminations 51 42 28 35 26 26 47 42 (50) (50) H1’08 H1’09 7
Slide 9: Core EBITDA
Core EBITDA (US$ million) Core EBITDA - 2% y-o-y Mobile 432 421 + 20% y-o-y 14 17 TSS Mobile H1’08 H1’09 TV & Content TSS PCCW Solutions 455 439 - 4% TV & Content Other Businesses (5) (4) H1’08 H1’09 11 11 (43) (42) H1’08 H1’09 8
Slide 10: Group Performance
Group Performance (US$ million) H1’08 H1’09 % change Revenue 1,458 1,638 + 12% Core Business 1,379 1,342 - 3% Cost of sales (633) (825) Operating expenses (384) (353) EBITDA 441 460 + 4% Core Business 432 421 - 2% Depreciation and amortization (224) (243) Operating profit 217 217 Other gains/ (losse
Slide 11: Debt Profile
Debt Profile (US$ million) Gross debt: US$4,538m Revolving Credit & Term Loan Facilities As of June 30, 2009 US$ Bonds $1,538 $1,000 $500 $1,000 $500 2009 2010 2011 2012 2013 2014 2015 Average remaining term of debt at approximately 3.4 years Average cost of debt reduced to approximately 4% from
Slide 12: Credit Fundamentals
Credit Fundamentals Net Debt Net Debt/EBITDA (1) PCCW Group (US$ million) 3,921 3.3 3.8 3.0 2.9 2,819 2,973 2,925 H2 H1 H2 H1 ’07 ’08 ’09 EBITDA/Interest (2) PCCW Group 5.0 5.4 H2 H1 H2 H1 4.6 4.4 2007 2008 2009 Net Debt(3) up 32% y-o-y to US$3,921m Net Debt/EBITDA (1) as of June 30, 2009 was 3.8x H
Slide 13: Business Review
Business Review Alex Arena Group Managing Director 12
Slide 14: Quadplay Update
Quadplay Update Fixed line IPTV Broadband Mobile 13
Slide 15: Stable Fixed-line Business
Stable Fixed-line Business Solid Customer Base Maintained Since 2005 (’000) Residential Lines Business Lines 1,667 1,543 1,487 1,423 1,403 1,407 1,407 1,407 1,408 1,408 1,407 1,387 1,400 1,266 1,180 1,183 1,183 1,185 1,195 1,236 1,175 1,176 1,183 1,144 1,127 1,164 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
Slide 16: Launch: Revitalizing the Fixed Line
Launch Revitalizing the Fixed Line An evolutionary step for fixed-line services Portable 8” touch-screen multimedia device Provides traditional voice and IDD services Provides video-calling Watch through embedded TV decoder 130,000 songs and music video on Incorporates Dictionary, Voca
Slide 17: Market Leader in Broadband
Market Leader in Broadband Broadband Continues to Grow Despite the Poor Economy (’000) ++22% -o-y % yy-o -y Wholesale Business 1,302 1,305 Consumer 1,237 1,275 1,176 1,117 113 113 110 998 107 953 104 99 857 94 88 80 1,136 1,099 1,126 1,060 1,005 952 840 798 715 H1 H2 H1 H2 H1 H2 H1 H2 H1 2005 2006 2
Slide 18: High Speed and Mobility Products Differentiate & Drive Broadband Growth
High Speed and Mobility Products Differentiate & Drive Broadband Growth Grow 1000M ARPU h Increased Speed t 100M row e G VDSL 2 nu 100M New ve 50M Re 30M e w N ADSL2+ Differentiate 18M Auto Network Selector New ADSL 1.5-8M >6,000 hotspots Ubiquitous wireless platform Increased Mobility 17
Slide 19: Pocket Wi-Fi for Multi Devices
Pocket Wi-Fi for Multi Devices Mobile Phone Laptop Game Device Entertainment Devices Camera The personal Wi-Fi Zone enables customers to simultaneously connect many devices to PCCW’s HSPA network, all under one single tariff plan 18
Slide 20: PCCW mobile Performance
PCCW mobile Performance Rapidly Growing PCCW mobile Base ARPU 3G base - 3G exit ARPU HK$175 - Blended (2G + 3G) post-paid exit ARPU HK$132 + 63% y-o-y -o-y (’000) +20% y 3G 1,408 1,313 2G Post-paid 1,176 2G Prepaid 1,071 470 957 414 921 288 781 206 738 55 119 459 440 430 516 462 460 456 491 405 429
Slide 21: Growth Under Challenging Times
Growth Under Challenging Times Mega Sport Packs, Steady Growth Momentum Other Value Packs & Segmented Offers Installed Base Paying Base 213 216 213 199 Paying base ARPU (HK$/ month) 166 140 992 110 114 118 927 953 105 882 70 818 57 758 686 705 668 608 628 549 560 501 441 444 361 391 269 271 192 147
Slide 22: Service Excellence as Differentiator
Service Excellence as Differentiator Content on Marketing Widest variety of content Well received self-produced Market segmentation: drive penetration into premium, offering unparalleled choice to programs on mid-affluent and mass pay TV viewers: demonstrating strength in customer segments cre
Slide 23: 2009 Interim Results
2009 Interim Results For the period ended June 30, 2009 August 20, 2009 - Hong Kong 22