PCCW Limited · HKEX:8
PCCW — H1 2001 Earnings Presentation
21 slides from PCCW's earnings presentation, Sep 6, 2001
Slide 1: FY2001 Interim Results Review
FY2001 Interim Results Review For the period ended June 30, 2001
Slide 2: Forward looking statements
Forward looking statements This presentation contains forward-looking statements. These forward-looking statements are not historical facts. Rather, the forward-looking statements are based on the current beliefs, assumptions, expectations, estimates and projections of the Directors and management o
Slide 3: Chairman's Overview
a Pocw Chairman’s Overview
Slide 4: PCCW's Interim Earnings
PCCW’s Interim Earnings • Revenue up 12% to US$1.45 billion • EBITDA up 15% to US$501 million • Net profit of US$120 million • Our high growth new businesses like Business eSolutions, consumer broadband and IDC growing, are building critical mass -- key to new telecom sales – Result: driving our ove
Slide 5: Business Unit Summary
Business Unit Summary 1H00 Proforma 1H01 Proforma Y-O-Y Change US$ million Revenue EBITDA Revenue EBITDA Revenue EBITDA TSS 1,245 598 1,280 651 3% 9% Business eSolutions 68 (7) 118 12 73% n/a IDC 4 - 8 (5) 88% n/a Internet Services 65 (110) 83 (98) 27% n/a Infrastructure 16 (2) 92 40 495% n/a Others
Slide 6: Review of Financials
a Pocw Review of Financials
Slide 7: Key Financial Highlights
Key Financial Highlights • Strong growth driven by data, broadband services • Improving our revenue mix – Data and Internet growth more than offsets consumer IDD revenue decline – Broadband network customers up 60% to 305,000 • Initial cost savings achieved in core telco business – Staff cost lowere
Slide 8: Financial Highlights
Financial Highlights June30, 2000 June 30, 2001 US$ million except for Earnings per share (HK cents) Turnover 13 1,450 Operating profit/(loss) before net gain on (34) 336 investments Gains on investments, net 28 32 Profit/(loss) from operations (6) 368 Finance (costs) / income, net 10 (227) Share of
Slide 9: Business Unit Summary
Business Unit Summary 1H00 Proforma 1H01 Proforma Y-O-Y Change US$ million Revenue EBITDA Revenue EBITDA Revenue EBITDA TSS 1,245 598 1,280 651 3% 9% Business eSolutions 68 (7) 118 12 73% n/a IDC 4 - 8 (5) 88% n/a Internet Services 65 (110) 83 (98) 27% n/a Infrastructure 16 (2) 92 40 495% n/a Others
Slide 10: Data Driving Revenue Growth
Data Driving Revenue Growth 000s Wholesale BB Customers 400 • TSS 305 – Data revenue increased 17% • Rising broadband penetration 191 200 • Increasing connectivity requirements of corporates, service providers – Local telephone services rose 5% • Tariff increase in January 2001 0 1H00 1H01 • Busines
Slide 11: TSS Revenue Mix
TSS Revenue Mix 1H00 1H01 Others 17% Telephone Others 21% Telephone Services Services 39% 40% International 20% International 28% Data Services 16% Data Services 19% 11
Slide 12: Business eSolutions
Business eSolutions US$ million 140 • External contracts driving growth 1H01 1H00 – Housing Authority (HR system); Airport Authority (flight data 70 display system); ISP network platform for So-Net – eMPF system for major financial institution; Infrastructure and IP solutions for HK Clearing; System
Slide 13: Others
Others Infrastructure B2C (Internet Services) IDC US$ million US$ million US$ million 100 100 1H01 $10 1H01 1H01 1H00 1H00 50 1H00 EBITDA $5 0 50 Revenue (50) $0 Revenue EBITDA (100) 0 -$5 Revenue EBITDA (150) US$ millions 1H00 1H01 US$ millions 1H00 1H01 US$ millions 1H00 1H01 Revenue 16 92 Revenue
Slide 14: Early Efficiency Gains
Early Efficiency Gains TSS • Revenue per employee in TSS rose 6% year on year • Staff cost reduced by 3.2% • Reduced international services outpayments by 45% while revenues declined by 25% Development costs • Growth businesses incurring start-up costs – Business eSolutions EBITDA positive since 2Q0
Slide 15: Management of Asset Portfolio
Management of Asset Portfolio US$ million 1H00 1H01 • Emphasis on leveraging portfolio of assets to Gains from Investments 28 32 enhance overall performance • One-off dividend income from CSL -- US$16 million • IPO of portfolio companies • Mark to market value on listed assets – Conservative approac
Slide 16: Financing
Financing Financing Charges Long term debt secured 2% 25% • Benefited from low interest rate environment 46% • Investment grade credit rating achieved for PCCW 2% (HKTC) 7% – S&P BBB; Moody’s Baa1 18% US$4.7 billion HKTC loan – Policy is to extend maturity and reduce overall financing US$1.1 billion
Slide 17: Reach, RWC (CSL) Financials
Reach, RWC (CSL) Financials Contribution from PCCW-Telstra JVs to P&L US$ million Reach (5 months) EBITDA 97 Share of jointly controlled companies 37 PBT 52 Share of results of Associates 12 CSL(5 months) PBT 14 Share of results of unconsolidated 19 One-Off PBT subsidiaries Reach (IPBC) 19 Mobile 40
Slide 18: HKSA Rule Changes
HKSA Rule Changes • HK Society of Accountants introduced new SSAP rules this year for “Impairment of Assets” • Transition period of first adoption of new SSAP rules permits prior-year adjustment • Treatment of Goodwill on HKT acquisition – No net effect on FY2000 shareholders’ deficit • Treatment of
Slide 19: Impact of PYA - Goodwill
Impact of PYA - Goodwill December 31, 2000 Balance Sheet and P&L US$ million Before PYA After Assets and Liabilities Total Assets 8,887 8,887 Total Liabilities (10,699) (10,699) Net Assets/(Liabilities) (1,812) (1,812) Representing: Share capital 140 140 Reserves/(Deficit): Opening Balance 1,397 1,3
Slide 20: Provision for Unavoidable Costs
Provision for Unavoidable Costs • SSAP 28 issued in Jan. 2001 -- Relevant section -- Provisions • Adoption of SSAP 28 requires us to recognize the contingent loss which will become realized on assured exercise of certain options • Conservative approach to provision for potential loss at US$415 milli
Slide 21: FY2001 Interim Results Review
FY2001 Interim Results Review For the period ended June 30, 2001
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