Pccw Limited · HKEX:8
Pccw — H1 2023 Earnings Presentation
23 slides from Pccw's earnings presentation, Aug 3, 2023
Slide 1: 2023 Interim Results
2023 Interim Results For the six months ended 30 June 2023 3 August 2023 – 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: Business Overview
Business Overview Susanna Hui Acting Group Managing Director & Group Chief Financial Officer 3
Slide 4: Diversified Portfolio of Leading Media and Telecom Businesses
Diversified Portfolio of Leading Media and Telecom Businesses OTT Business Free TV & Related Business • Leading video streaming platform in Southeast Asia • Steady performance with robust content line-up in 2H 2023 • Sustained growth in MAU and paid subscribers • Driving growth and exposure in our c
Slide 5: OTT Business
© viv OTT Business
Slide 6: Viu Continues To Be A Leading Video Streaming Platform in SEA
Viu Continues To Be A Leading Video Streaming Platform in SEA Achieved +30% YoY revenue growth 1 st 2 nd 2 nd 2 nd SUBSCRIBER PAID MONTHLY STREAMING NET ADDS SUBSCRIBERS ACTIVE USERS MINUTES 1H 2023 Subscriber Net Adds (YoY) 1H 2023 Paid Subscribers 1H 2023 MAUs 1H 2023 Streaming Minutes Viu Disney+
Slide 7: Sustained Growth In Both MAUs And Paid Subscribers
Sustained Growth In Both MAUs And Paid Subscribers Monthly Active Users Paid Subscribers Million Million 65.5 60.7 11.0 9.1 49.4 7.0 1H21 1H22 1H23 1H21 1H22 1H23 • Maintained MAU growth with notable pick up in • Boosted subscriber acquisition by developing new Indonesia and South Africa telco and B
Slide 8: Balance Of Regional And Localised Viu Original Content
Balance Of Regional And Localised Viu Original Content • 4 Korean Viu Originals & 6 localised Viu Originals for Thailand, Malaysia, Indonesia markets launched in H1 2023 • Diverse genres to suit different audiences and support robust SVOD and AVOD businesses Korean Viu Originals Local Viu Originals
Slide 9: Viu Scream Dates / Live Events
Viu Scream Dates / Live Events • Live events/experiences bringing cast closer to the fans and creating new revenue streams • Officially launched in March following the success of Taxi Driver 2 ✓ Pent-up demand for live ✓ Extend the Viu branded experiences ✓ Creating additional digital content, drivi
Slide 10: Forged Strategic Partnership With CANAL+ To Accelerate Growth
Forged Strategic Partnership With CANAL+ To Accelerate Growth Strategic Partnership with CANAL+ Completed in June 2023 • CANAL+, a leading global media and entertainment group, will become a significant minority shareholder in Viu for an aggregate investment of US$300 million • Affirmation of Viu’s
Slide 11: Free TV & Related Business
© viuv Free TV & Related Business
Slide 12: Steady Performance With Robust Content Lineup in 2H
Steady Performance With Robust Content Lineup in 2H 1H Overview 2H Program Highlights • Stable advertising revenue and expanded artiste management and events- Be On Game 膠戰S3 related revenues from increased involvement of our artistes in films, music The highly-anticipated third season of our succes
Slide 13: Driving Growth And Exposure in Hong Kong and Beyond
Driving Growth And Exposure in Hong Kong and Beyond CONTENT. TALENT. EVENT. Mad Fate (命案) MIRROR P1X3L Chill Club: The Alternatives ERROR COLLAR Continued to produce popular and quality Received nominations at the HK Film Awards and Diverse range of live performances and events programs for ViuTV, i
Slide 14: Dividend Underpinned by Business Resilience
Dividend Underpinned by Business Resilience 37.05 38.04 32.18 32.18 2023 Interim 29.75 31.24 28.33 Dividend per share: Final 25.00 9.77 HK cents Dividend 28.48 Per Share 20.20 23.00 23.00 27.69 21.18 22.33 20.17 Interim 17.04 Dividend 13.21 Per Share (HK cents) 6.99 7.96 8.16 8.57 8.91 9.18 9.18 9.3
Slide 15: Financial Overview
Financial Overview Marco Wong Head of Investor Relations 15
Slide 16: Financial Highlights
Financial Highlights (US$ million) H1’22 H1’23 % change Revenue (from continuing operations) 2,146 2,160 1% Revenue (from continuing operations) 1,981 2,012 2% (excluding mobile product sales) EBITDA (from continuing operations) 706 722 2% Revenue (US$ million) H1’22 H1’23 % change EBITDA (US$ milli
Slide 17: Resilient Performance with Growth in Mobile and TSS
Resilient Performance with Growth in Mobile and TSS Adjusted Funds Flow grew to US$311 million Interim Distribution of 32.05 HK cents per SSU HKT Revenue (US$ million) HKT EBITDA (US$ million) 2,071 2,103 +2% yoy 748 770 +3% yoy 165 148 Mobile Services 281 +3% yoy 468 489 272 + 5% yoy Local Data + 1
Slide 18: Viu Demonstrating Operational Scale
Viu Demonstrating Operational Scale OTT Revenue (US$ million) OTT EBITDA (US$ million) 124 +24% yoy +>800% yoy 101 19 21 105 + 30% yoy 142 21 80 Others Viu 2 H1’22 H1’23 H1’22 H1’23 Significant revenue growth of 24% underpinned by 30% growth in Viu With the enlarged revenue base, EBITDA was up 40 Vi
Slide 19: Steady Performance with Strong 2H Content Line-Up
Steady Performance with Strong 2H Content Line-Up ViuTV Revenue (US$ million) ViuTV EBITDA (US$ million) +1% yoy +5% yoy 50 50 10 11 H1’22 H1’23 H1’22 H1’23 Artiste management and event related revenues grew as EBITDA expanded by 5% on the back of savings our talent’s involvement in films, music and
Slide 20: Continued Efficiency Gains Across The Group
Continued Efficiency Gains Across The Group Operating Expenses (US$ million) Opex savings of 5% year on year with opex to 395 375 revenue ratio improving to 17% from 18% 79 largely due to improvement at HKT 76 HKT opex declined by 4% with continued focus on operating efficiency Digitalising business
Slide 21: Controlled Capex Spending to Meet Customer Demand
Controlled Capex Spending to Meet Customer Demand Capex (US$ million) Capex declined by 5% with the capex to revenue 154 146 ratio further improving to 6.8% 8 Mobile capex declined reflecting the completion of 2 9 1 territory-wide 5G coverage rollout in 2022, with 56 50 spending focused on capacity
Slide 22: Debt Maturity Profile
Debt Maturity Profile (US$ million) HKT As of 30 June 2023 580 954 HKT Bank Loans 851 HKT Bonds 750 650 500 500 351 300 128 213 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 As of 30 June 2023 PCCW PCCW Bank Loans PCCW Bonds 513 218 100 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Current m
Slide 23: Healthy Liquidity
Healthy Liquidity As of As of Jun 2022 Jun 2023 Gross Cash Undrawn Gross Cash Undrawn Debt Balance (5) Facilities Debt Balance (5) Facilities US$ million HKT 5,685 261 1,755 5,784 244 1,387 PCCW 722 113 711 831 85 1,269 Total 6,407 374 2,466 6,615 329 2,656 Gross Debt (1) / EBITDA (3) 4.20x 4.12x Ne