| |
Dear Friends of HKBN
HKBN Ltd. Announces FY18 Interim Results for the 6 Months Ended 28 Feb 2018
Strong J-Curve Growth Delivered in Residential & Enterprise Businesses
|
|
| |
| |
Today we announced our unaudited consolidated results for the six months ended 28 February 2018. During the period, we delivered strong J-curve growth momentum in both residential and enterprise businesses, harvested from the successful execution of our enhanced quad-play strategy and the full integration of New World Telecom (“NWT”) business. Key highlights from the interim period include:
- Strong year-on-year growth in Revenue, EBITDA and Adjusted Free Cash Flow at 22%, 23% and 24%, to HK$1,868 million, HK$594 million and HK$237 million, respectively.
- Residential revenue increased by 17% to HK$1,101 million. Historical full base residential ARPU increased by 4% year-on-year, from HK$166 in 1H2017 to HK$173 in 1H2018, while the monthly churn rate remained low.
- Enterprise revenue increased by 19% year-on-year to HK$679 million.
- The Board of Directors has recommended the payment of an 18% year-on-year increase in interim dividend to 26 HK cents per share.
Successful quad-play strategy execution resulted in strong growth in residential service revenue and ARPU
|
|
| |
 |
Offering a full suite of broadband, fixed-voice, OTT and mobile services, our quad-play strategy was in full swing, garnering a 17% year-on-year growth in residential revenue. Residential ARPU (Average Revenue Per User) grew from HK$166 in 1H2017 to HK$173 in 1H2018, while our market share by broadband subscriptions maintained at 37% as at 31 December 2017 (based on the latest available OFCA statistics).
Rapid growth in our mobile business continued, with residential mobile registered subscriptions increased from 218,000 in FY17 to 313,000 in 1H2018. With the introduction of high-tier tariff plans, mobile ARPU (without broadband services) increased significantly from HK$119 in FY17 to HK$142 in 1H2018; while mobile ARPU (with broadband services) rose notably from HK$268 in FY17 to HK$311 in 1H2018.
Strong OTT overlay was achieved with myTV SUPER partnership. Since launching myTV SUPER offerings in April 2016, we have achieved 730,000 set-top boxes ordered by residential customers, and 165,000 apps to HKBN mobile customers, as at 28 February 2018.
|
| |
|
At HKBN’s 1H2018 interim results presentation, our Co-Owner and CEO William and our Co-Owner and COO NiQ revealed the exceptional financial progress made from executing our J-curve growth strategy.
|
|
|
| |
|
| |
Accelerated enterprise business growth momentum contributed by full integration of NWT & enhanced competitive value for different customer segments
HKBN enterprise business continued to deliver strong growth. Benefitting from the full integration of NWT, as well as more big-project wins whilst maintaining SME market expansion momentum, enterprise revenue grew rapidly by 19% year-on-year to HK$679 million. The number of enterprise customers increased 10% year-on-year to 56,000; while APRU rose 4% to HK$1,526. HKBN’s market share by broadband subscriptions increased to 19% as of 31 December 2017 (based on the latest available OFCA statistics).
Moving full steam ahead to drive continued robust growth via Co-Ownership Plan III
“We are proud to have delivered remarkable, across-the-board growth in the industry, executing in line with our pledged J-curve strategy,” said our Co-Owner and CEO William. “We are moving full steam ahead to harvest higher returns for our investors in the years to come, and simultaneously bring exceptional value for our customers.”
“HKBN’s strongest Legal Unfair Competitive Advantage (“LUCA”) is the shareholder alignment that comes part and parcel with our unique Co-Ownership programme. Unlike most companies, the majority of our supervisory-and-above-level Talents have invested their own family savings into HKBN stock and serve our business from the perspective of a Co-Owner,” said our Co-Owner and COO NiQ. “We aim to further deepen this shareholder alignment by making our Co-Ownership Plan III, which will be open this June, available to 663 of our supervisors-and-above-level Talents for their elective participation. As a team united with skin in the game, this exciting development will give us unparalleled passion and hunger to achieve our aspirational goal of cumulative HK$2.1 to HK$2.4 Adjusted Available Cash per Share for Distribution for the period FY18-20.”
For details of HKBN’s 1H2018 interim results, please refer to the links below:
|
|
| |
|
|
