Pccw Limited · HKEX:8
Pccw — Hongkong Telecom — FY1999 Earnings Presentation
20 slides from Pccw's earnings presentation, May 7, 1999
Slide 1: 1998/99 Results Presentation
Hongkong Hongkong Telecom Telecom 1998/99 Results Presentation Linus Cheung Chief Executive David Prince Deputy Chief Executive & Finance Director 7 May 1999 1 Empowering Hong Kong @ HKT
Slide 2: Transforming the Company
Transforming the Transforming the Company Company Proactively Rebalancing the Revenue Portfolio Delivering Growth from Data and Internet Reshaping the Cost Structure Creating Customer Value through Innovation, Service Integration and Quality Expanding into New Markets in the Asia Region People - Ski
Slide 3: Financial Review - Summary
Financial Review Financial Review -- Summary Summary FY99 HK$’M %Change Revenues 32,411 (7.5) Operating Costs 20,573 (5.6) Operating Profit 11,838 (10.7) Net Interest & Other Income 1,304 22.6 Profit Attributable to Shareholders 11,507 (7.7) Earnings Per Share - cents 96.4 (8.5) Dividend Per Share -
Slide 4: Rebalancing the Revenue Portfolio
Rebalancing the Rebalancing Revenue Portfolio the Revenue Portfolio Excluding IDD, FY99 Revenues Grew 5.3% 20,000 CAGR = 16.5% • Intl Leased Circuits 17,500 • Local Telecoms • Mobile • Internet & IMS HK$ Million 15,000 • Technical & Others 12,500 = 60% of Total Revenues 10,000 7,500 FY95 FY96 FY97 F
Slide 5: Reshaping the Cost Structure
Reshaping the Reshaping Cost Structure the Cost Structure Robust Operating Margin, Enhanced EBITDA Margin 45% EBITDA Margin 45.7% 40% Operating Margin 35% 36.5% 30% FY95 FY96 FY97 FY98 FY99 5 Empowering Hong Kong @ HKT
Slide 6: Financial Review - Revenues
Financial Review Financial Review -- Revenues Revenues Change FY99 % FY98 FY97 International Telecommunications 15,564 (17.7) 18,910 19,392 Local Telecommunications 9,401 5.8 8,886 7,661 Mobile Services 5,824 (2.9) 5,996 4,659 Internet & Interactive Multimedia 626 145.8 255 67 Technical & Other Serv
Slide 7: Financial Review - Revenues
Financial Review Financial Review -- Revenues Revenues FY99 HK$’M %Change International Telecommunications 15,564 (17.7) – International Traffic – Impact of International Simple Resale (ISR) from 1.1.99 – IDD Market – International Leased Circuits 7 Empowering Hong Kong @ HKT
Slide 8: Financial Review - International Traffic
Financial Review Financial Review -- International International International Traffic – Bothway Gateway Traffic Volumes declined 8.8% YOY • Outbound traffic down 2.1%YOY • Inbound traffic down 14.2%YOY • Shift of Callback traffic to ISR through Leased Circuits • Reversed Traffic Flows - HKT again N
Slide 9: Impact of ISR
Financial Review Financial Review -- International International Impact of ISR 120 Non-China Traffic Revenue Impact: Lower Inpayments from Millions of Minutes/Month Incoming ISR Foreign Carriers 90 Cost Impact: Reduced Delivery Fees Outgoing payable to Competitors 60 CNY 30 Mar-98 Jun-98 Sep-98 Dec-
Slide 10: Financial Review - International: IDD Market
Financial Review Financial Review -- International International IDD Market – Price Competition – Low Pricing Stimulating Traffic Growth since 1.1.99 – Strongly positioned with Cable & Wireless Global Markets 10 Empowering Hong Kong @ HKT
Slide 11: International Leased Circuits
Financial Review Financial Review -- International International International Leased Circuits – International Leased Circuits Revenue increased 18% • Leased Capacity up 86% to 1.2Gbit/s • Demand for Data, Internet and ISR driving growth 11 Empowering Hong Kong @ HKT
Slide 12: Local Telephone Services
Financial Review Financial Review -- Revenues Revenues FY99 HK$’M %Change Local Telephone Services 9,401 5.8 – Overall Line Growth of 1% • Business line decline 1%; Residential line growth 2% – Increased penetration of Value Added Services • 259,000 HomeSelect = 137% Growth • 394,000 Caller Display
Slide 13: Mobile Services
Financial Review Financial Review -- Revenues Revenues FY99 HK$’M %Change Mobile Services 5,825 (2.9) – Customer Base increased 10% to 948,000 – Effective Differentiation: • Loyalty Programmes, Value-added Services • Integration with Internet - MobileEmail.Organiser • Competitive Pricing Packages an
Slide 14: Internet & Interactive Multimedia Services
Financial Review Financial Review -- Revenues Revenues FY99 HK$’M %Change Internet & Interactive Multimedia Services 626 145.8 – Internet Access Market Leader • 322,000 customers in Hong Kong incl. 11,000 Broadband • Netvigator dial -up Internet Traffic grew 147% = 57% of total • Acquired FICNet in
Slide 15: Technical & Other Services
Financial Review Financial Review -- Revenues Revenues FY99 HK$’M %Change Technical & Other Services 996 0.2 – Steady Revenue from Govt Technical Services Agreement – Increased Revenues from Investment Properties – Directory Advertising Sales declined due to Weak Economy – Callcentre Business Commen
Slide 16: Financial Review - Costs
Financial Review Financial Review -- Costs Costs FY99 HK$’M %Change Revenue Related Costs: Allocations to Other Administrations 6,404 (23.7) Cost of Sales & Services 3,272 8.2 Overhead Costs: Staff Costs 4,113 2.2 Depreciation 2,964 21.3 Rent, Rates, Utilities 1,054 24.5 Management Fee 112 (49.4) Ot
Slide 17: Outlook
Outlook Outlook Economy Competition 17 Empowering Hong Kong @ HKT
Slide 18: Commitment to Innovation
Commitment to Commitment to Innovation Innovation BY 2001: Hong Kong will be a major Asian e-commerce centre Internet usage in Hong Kong will be greater than that of the mobile phone today Hong Kong will be the preferred Internet hub in Asia 18 Empowering Hong Kong @ HKT
Slide 19: Overall Strategy
Overall Strategy Overall Strategy Broad Service Portfolio = Integrated Communications – Fixed/mobile voice, data, value added services – Internet & Interactive Multimedia Services – e-commerce Global Growth from International = Internet and Data tonnage – Closer integration with Cable & Wireless Per
Slide 20: Living the Vision
Living the Living the Vision Vision The Most Successful Integrated Communications Company in Asia 20 Empowering Hong Kong @ HKT