Dear Friends of HKBN

HKBN Announces FY2024 Annual Results

YoY EBITDA Growth Outpaces the Industry
Delivering Sustainable Growth

Today we announced our operational and financial results for the year ended 31 August 2024 (“FY24”). Despite the challenging business environment, HKBN has been able to drive long-term growth of our Enterprise Solutions and Residential Solutions business through enhancing operational efficiencies, strengthening core business performance and diversifying our business portfolio.

ANNOUNCEMENT HIGHLIGHTS

• Revenue excluding sales of handsets declined year-on-year by 1%. Total revenue decreased year-on-year by 9% to HK$10,651 million, primarily attributed to weaker than expected performance in sales of handset and other products.




• EBITDA increased year-on-year by 3% to HK$2,365 million. FY24 second half year delivered a strong EBITDA performance of HK$1,214 million or 11% year-on-year growth.




• Profit for the year was HK$10 million. In comparison, the annual loss for the previous year was HK$67 million after excluding the one-time impairment on goodwill. This positive change was largely due to the Group’s ongoing efforts to improve its core business performance and operational efficiency.




• Adjusted free cash flow (“AFF”) decreased year-on-year by 19% to HK$620 million. The prevailing high-interest rate environment was the main factor, leading to a 41% increase in net interest paid over the year. In consideration of the Company’s dividend policy and the anticipated capital expenditure requirements to drive long-term shareholder value, the Board has recommended the payment of a final dividend of 16.5 HK cents per share (FY23: 20 HK cents per share), resulting in a 21% year-on-year decrease in full year payment to 31.5 HK cents per share (FY23: 40 HK cents per share).

Enterprise Solutions: Capturing Growth Through ICT Transcendence

Enterprise Solutions experienced a marginal year-on-year revenue decline of 1% to HK$6,675 million. However, the business has made notable progress in strengthening our core business performance and recorded a 1% increase in enterprise services revenue (excluding international telecommunications services), a result which underscores our robust capabilities in system integration. New business bookings remained solid, generating a strong revenue backlog from contracts set to mature over the next 2 to 3 years. With the launch of Aegis Intelligence to upgrade our enterprise network monitoring solution, Aegis Connect, we continue to inject innovation and add value to our high-margin Fixed Telecommunications Network Services, further deepening the relationship with enterprise customers.

Residential Solutions: Strengthened Infinite-play Strategy for ARPH (Average Revenue for Household) Growth

In the face of a highly competitive market environment, our Residential Solutions business demonstrated resilience with a slight revenue decline of 2% to HK$2,344 million. Service revenue remained stable, mainly attributable to our persistent implementation of an Infinite-play strategy to enrich our portfolio of value-added offerings and bundles, which resulted in a 2% increase in residential ARPU to HK$182. Our collaborations with AXA and Bowtie to launch home insurance and 4-in-1 healthcare service plans respectively has expanded our diversification strategy to widen market appeal and wallet share. With travel returning to pre-epidemic levels, consumer demand for roaming data rebounded sharply, leading to a significant increase in the sales of our Global SIM travel data cards.

Looking ahead to FY25, we will continue to streamline our operations, focusing on strengthening the residential business by enhancing our value-added offerings, and boosting the competitiveness of our enterprise ICT business to further enhance our market position. Anticipating a decline in interest rates, we foresee solid and sustainable growth ahead.

For more details about HKBN’s FY24 results, please click the links below:

• Announcement and shareholder letter




• PowerPoint presentation




• Webcast replay

Leading through purpose, HKBN tops Hong Kong’s telco industry in ESG*

*Based on the Hang Seng Corporate Sustainability Benchmark Index and MSCI’s ESG Ratings

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