Pccw Limited · HKEX:8
Pccw — FY2006 Earnings Presentation
41 slides from Pccw's earnings presentation, Mar 28, 2007
Slide 1: 2006 Annual Results
2006 Annual Results For the year ended December 31, 2006 March 28, 2007 - Hong Kong 0
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains "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 on
Slide 3: 概覽
概覽 2
Slide 4: 2006年財務表現
2006年財務表現 （百萬美元） （百萬美元） 年 2005年 2005年 年年 2006年 2006 收益 收益 2,885 3,287 EBITDA EBITDA 853 875 投資及其他收益 投資及其他收益 80 5 本年度溢利 239 209 股權持有人 股權持有人 應佔溢利 應佔溢利 204 161 董事會建議派發末期股息每股港幣12分，但仍須待 3 股東通過後方可作實
Slide 5: 業務進展
業務進展 已安裝 的用戶達758,000名，ARPU上升，頻道現已超過130條 電視及內容 首選的體育節目平台 － 擁有英超聯、歐洲聯賽冠軍盃等獨家播放權 增設廣告及互動業務，開拓新收益來源 完成「四網合一」平台 － 陸續推出新產品及服務 核心業務 固網業務更形鞏固－ ARPU明顯趨於穩定 寬頻 － 寬頻線路超過100萬條，Wi-Fi香港熱點增至逾3,000個 收購SUNDAY全部資產，著手全面整合至本集團 流動通訊 推出3G服務，提升網絡，並推出創新服務 跨平台服務 － 、 、「流動戲票」、 、「視察易」 萃鋒、客戶聯絡中心及PCCW Global － 外間業務收益增長 其他業務 電訊盈科企
Slide 6: 與中國網通的合作關係
與中國網通的合作關係 寬頻 國際網絡傳輸 於2007年1月取得有關當局的批准後，完成收購 網通寬帶的五成股權 PCCW Global已成功與中國網通訂立一份合約， 提供速度達30千兆比特(Gigabyte) ，接通香港與 網通寬帶在杭州及寧波兩個城市為超過25萬客戶 美國之間的傳輸服務方案 提供寬頻服務 電訊盈科銳意擴闊在內地寬頻市場的業務立足點 其他合作 資訊科技服務 繼續磋商有關電話查詢業務的合作 呼家樓物業發展項目仍待北京有關當局審批，而 電訊盈科企業方案與中國網通(香港)達成協議， 東四區項目合營協議將告訂立 合作提供資訊科技服務 繼續與中國網通探討，電訊盈科如何提供支援， 雙方計劃合
Slide 7: 展望
展望 發揮「四網合一」在內容及應用服務方面的潛力 「四網合一」 四網合一」 透過跨平台傳送獨特內容，取得互利優勢，如 、 、 、「視察易」等，日後陸續推出更多創新服務 英超聯現場獨家播放權，令 增長持續強勁 電視及內容 新增來自廣告及交易的收益來源 於2007年推出高清電視服務 保持市場佔有率，著重增加收益 核心業務 加強固網服務的優勢，新增高速數據及視象服務 增加萃鋒、電訊盈科企業方案及客戶聯絡中心的外間業務收益 更加緊密融入「四網合一」，令市場推廣更為有效 流動通訊 推出創新的跨平台服務，令 優於同業 「高速下載分組接入」（HSDPA）及電訊盈科的Wi-Fi服務，應有助 提升無線數據使用量
Slide 8: Overview
Overview 7
Slide 9: 2006 Financial Performance
2006 Financial Performance (US$ million) 2005 2005年 2006 年 2006 Revenue 收益 2,885 3,287 EBITDA EBITDA 853 875 投資及其他收益 Investment & Other Gains 80 5 Profit for the Year 239 209 股權持有人 應佔溢利 Profit Attributable to Equity Holders 204 161 The Board Has Recommended a Final Dividend of 12 HK Cents Per Share,
Slide 10: Achievements
Achievements 758,000 installed, higher ARPU, and over 130 channels today TV & Content Premier platform for sports programming – exclusive EPL, UEFA, etc. Advertising & Interactive Services established for new revenue streams Quad Play platform completed - new products & services coming Core Business
Slide 11: Co-operation with China Netcom
Co-operation with China Netcom Broadband International Connectivity Completed acquisition of 50% CNCBB stake after approvals from relevant authorities in Jan 2007 PCCW Global secured contract with China Netcom to provide 30 Gigabyte connectivity CNCBB provides broadband services to 250,000+ solution
Slide 12: Outlook
Outlook Quad Play Unleashing Quad Play potential with content and applications Quad Play Mutual benefit from cross-platform delivery of unique content like , EasyWatch, more to come Exclusive EPL live broadcast rights should sustain strong growth TV & Content New sources of revenue from advertising
Slide 13: Financial & Business Review
Financial & Business Review 12
Slide 14: Summary P&L
Summary P&L (US$ million) 2005 2006 % change Revenue 2,885 3,287 up 14% Cost of Sales (1,342) (1,627) General and administrative expenses (1,033) (1,178) Operating profit 510 482 Other gains, net 80 5 Losses on property, plant and equipment (7) (1) Finance costs, net (217) (164) down 25% Impairment
Slide 15: Revenue
Revenue y -oo--yy - 4% % y (US$ million) UUpp114 3,287 2,949 2,885 PCPD + 42% y-o-y 931 TSS + 2% y-o-y 748 657 TV & Content + 71% y-o-y Mobile (2) 1,964 1,971 1,929 PCCW Solutions + 5% y-o-y 24 55 95 Other Businesses TV & Content 77 158 239 202 212 89 79 76 (115) (114) (156) Elimination 2004 (1) 200
Slide 16: Cost of Sales
Cost of Sales (US$ million) 1,627 1,350 1,342 PCPD • Booked against 779 higher revenues 614 539 Group Total ex- PCPD • In line with ex-PCPD revenue growth 803 848 736 2004 2005 (1) 2006 (1) (1) Included post-acquisition results of SUNDAY in H2’05 and 2006 15
Slide 17: Expenses
Expenses (US$ million) 1,461 1,395 1,455 128 118 142 Tax 251 163 218 Net finance costs 389 325 345 Depreciation & amortization 757 690 785 Operating costs 2004 2005 (1) 2006 (1) (1) Included post-acquisition results of SUNDAY in H2’05 and 2006 16
Slide 18: EBITDA
EBITDA -o-yy %yy-o- UUpp33% (US$ million) 842 853 875 97 122 87 PCPD TSS PCCW Solutions 912 897 898 Mobile (2) TV & Content 3 Mobile Other Businesses 4 PCCW Solutions 6 PCCW Solutions 20 (34) (36) (24) (137) (104) (43) (98) (2) 2004 (1) 2005 (1)( 2) 2006 (1) Restated for new segments (2) Included po
Slide 19: Profit for the Year
Profit for the Year (US$ million) 239 202 35 209 3 48 Minority Interests Profit Attributable 204 to Equity Holders 199 161 * Other Gains, Net 80 * 5* (1) (1) 2004 2005 2006 (1) Included post-acquisition results of SUNDAY in H2’05 and 2006 18
Slide 20: Debt Profile
Debt Profile (US$ million) Convertible Bonds Revolving Credit Facilities Gross debt: US$3,715m US$ Bonds As of December 31, 2006 Guaranteed Notes $1,000 $956 $808 (1) $450 $456 $500 (1) $500 2007 2008 2009 2010 2011 2012 2013 2014 2015 Update (1) US$450m convertible bonds due 2007 and US$456m guaran
Slide 21: Credit Fundamentals
Credit Fundamentals Gross Debt/EBITDA (1) Net Debt PCCW consolidated (US$ million) HKTC 4.7 4.5 4.4 4.2 4.3 3.0 3.2 3,735 2.1 3,368 2,498 2,529 ’03 ’04 ’05 ’06 ’03 ’04 ’05 ’06 EBITDA/Interest (2) 8.2 8.5 2003 2004 2005 2006 6.6 5.0 3.2 3.2 2.9 3.3 Gross Debt down 1 % y-o-y to US$ 3,715m Net Debt up
Slide 22: Operational & Strategic Review
Operational & Strategic Review 21
Slide 23: 2006 - Invested in Quad Play Platforms
2006 - Invested in Quad Play Platforms Solid Performance in Each of the Four Service Lines 22
Slide 24: Stable Fixed-Line Business
Stable Fixed-Line Business Solid Customer Base Fixed Lines (‘000) Maintained stable market share Residential Lines Business Lines - Line gain in both residential and business since July 2005 - Monthly churn rate less than 1% 1,667 1,543 - Launched innovative services to 1,487 1,403 1,407 retain cust
Slide 25: Growing Mobile Customer Base
Performance Growing Mobile Customer Base Improvements (’000) 5 % % yy--oo--yy ++225 • Total mobile customer base grew 25% – Rising market share Prepaid 921 – Post-paid up 25% as well Post-paid 781 • Mobile service renamed PCCW mobile 738 – Began full integration after purchasing 350 100% SUNDAY oper
Slide 26: Innovations
Innovations on mobile on mobile MobileTix Exclusive content on-line and mobile Hong Kong’s first mobile 60,000+ songs & music ticketing service First mobile TV utilizing videos in library multicast technology Purchase cinema tickets on Local and international top 6 initial channels of local & hit se
Slide 27: Market Leader in Broadband
Market Leader in Broadband Broadband Lines Continue to Grow --yy Achievements (’000) yy--oo 7%% ++117 Wholesale 1,117 Business 998 Achieved 17% growth y-o-y with low Consumer 953 churn rate (remaining below 1%) 857 99 796 94 Innovative services driving growth 753 88 703 629 80 − driving broadband de
Slide 28: Momentum Continues
Momentum Continues Strong Demand for Drivers (’000) y o--y Over 130 local & international channels Installed base yy--o 758 - as of March 2007 Paying base 88% % ++33 The strongest sports content line-up: 608 - English Premier League, UEFA Euro 2008TM, Italian Serie A, J-League, UEFA Champions 549 Le
Slide 29: Healthy Growth in ARPU
Healthy Growth in ARPU Strong Paying Base & ARPU Growth ARPU Drivers Paying base (’000) Paying base ARPU Premium content offering with English (HK$/ month) Value packs further Premier League & other leading sports enhanced ARPU Mini Packs Highly popular mini-packs & value 140 plans with up-selling p
Slide 30: 2007 - Unleashing the Quad Play
2007- Unleashing the Quad Play Strategy to provide common content, applications and transactions across all four platforms To Give Customers Better Functionality, More Flexibility, and to Increase Expenditure 29
Slide 31: Typical Quad Play Offerings
Most Comprehensive Sports & Football Content on Multiple Platforms Typical Quad Play Offerings Access to many services via multiple devices IPTV Mobile New Fixed-line Broadband Service Internet * Content Applications & Transactional Services EasyWatch PCCW’s Integrated Technology Platform * Exclusiv
Slide 32: PCCW Quad Play Example
PCCW Quad Play Example Share & view both photos & video, real time uploading and processing Unique Quad Play Service View & share photos & video on PC, mobile, New Fixed-line Service, and (on channel 508) Free of charge sharing images within 3G network - Enjoy basic plan free if subscribe to two or
Slide 33: Another PCCW Quad Play Example - EasyWatch
Another PCCW Quad Play Example - EasyWatch New Fixed-line IPTV Service Unique Remote Monitoring Service Simple and convenient one-stop-shop home/ business security and monitoring solution Viewed anytime anywhere even overseas Platform recording available Wireless camera – Image stored at PCCW server
Slide 34: Third PCCW Quad Play Example - EPL
Third PCCW Quad Play Example - EPL English Premier League 100% EPL games live rights EPL anytime anywhere over PCCW’s four delivery platforms * Professional Cantonese commentators Innovative Network Personal Video Recording service (NPVR) now Select replay service to watch already-played matches any
Slide 35: Tremendous Quad Play Opportunities
Tremendous Quad Play Opportunities Leveraging PCCW’s Unique Content Across All Platforms * * Exclusive for 3 seasons commencing from 2007/08 Unlocking Advertising & Transactional Capabilities of Unique Interactive Platform 34
Slide 36: Advertising and Interactive Services
Advertising and Interactive Services Further Opportunities On PCCW Quad Play Merchandising Transaction Services Dial a Dinner Buy your Cinema ticket Order your meal Real Time stock Quotes Interactive Advertising Broadcast Ads & Sponsorship Providing New Revenue Streams 35
Slide 37: Complementing PCCW's Quad Play
Complementing PCCW’s Quad Play Massive expansion of PCCW Wi-Fi to 3,000+ Wi-Fi hotspots in HK For convenient high-speed outdoor wireless broadband access to laptops, PDAs, mobile phones, and any wireless-enabled devices Wi-Fi at MTR stations in pipeline 36
Slide 38: 2007 - PCCW Has Unleashed the Quad Play
2007- PCCW Has Unleashed the Quad Play 37
Slide 39: Appendix
Appendix 38
Slide 40: PCCW Consolidated Debt Maturity Profile
PCCW Consolidated Debt Maturity Profile (US$ million) 1 Dec 2003 Net Debt = 3,735 Debt to EBITDA = (4,424 / 948) = 4.67X $1,154 $1,000 $54 $956 $1,100 $450 $481 $385 $456 $250 $96 $500 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2031 Net Debt = 3,368 Debt3 to EBITDA = (3,816 / 842) = 4.53x Dec
Slide 41: HKTC Debt Maturity Profile
(US$ million) HKTC Debt Maturity Profile Net Debt =2,074 HKTC Debt to EBITDA = (2,200 / 1,047) = 2.10X Dec 2003 $1,000 $450 $500 $250 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2031 Net Debt = 2,621 HKTC Debt to EBITDA = (2,656 / 889) = 2.99X Dec 2004 $1,000 $956 $450 $456 $250 $500 2005 2006