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HKBN announces resilient FY20 growth across all business fronts. (From left) Our Co-Owner and Chief Strategy Officer Almira Chan, Co-Owner and Executive Vice-chairman William Yeung, and Co-Owner and Group CEO NiQ Lai.
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Dear Friends of HKBN
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HKBN Announces Solid FY20 Annual Results
Integration Synergies and Multi-play Strategy Bolster Resilience & Growth
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Today, we announced solid operational and financial results for the year ended 31 August 2020 (“FY20”). Despite social unrest and COVID-19, we saw resilient growth on all business fronts in FY20. The completion of JOS acquisition has further bolstered our offerings and capabilities in the enterprise space as the largest alternative telecom carrier with integrated telecom and technology solutions capabilities in Hong Kong. Key highlights of FY20 results include:
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Revenue, EBITDA and Adjusted Free Cash Flow (“AFF”) continued to grow year-on-year at 85%, 47%, and 49% respectively to HK$9,453 million, HK$2,505 million, and HK$1,114 million. The substantial year-on-year increase was mainly contributed by:
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Increase of Enterprise Solutions revenue by 103% to HK$4,708 million, which was mainly contributed by the full year operating results of WTT and eight and a half months operating results of JOS.
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Reported EBITDA increased by 47% to HK$2,505 million after adoption of HKFRS 16 in FY20. Excluding the impact of HKFRS 16, EBITDA would have increased 32% from HK$1,709 million to HK$2,251 million mainly contributed by consolidating the operating results of WTT and JOS and the realisation of synergies through integration.
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The Board has recommended the payment of a final dividend of 38 HK cents per share (FY19: 36 HK cents per share), resulting in a 7% year-on-year increase in full year payment to 75 HK cents per share (FY19: 70 HK cents per share).
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Enterprise Solutions: increased capabilities and presence drove revenue and ARPU growth
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WTT and JOS integrations increased both our capabilities and offerings in the enterprise segment, which have enabled us to provide integrated telecom and technology solutions at competitive value to a much larger customer base. During the year, our total number of enterprise customers increased to 105,000 and our enterprise ARPU improved from HK$1,742 to HK$2,948. Looking forward, Enterprise Solutions will maximise the operational and financial synergies benefits from the enlarged group, and fully utilise the network capacity and back-end support function of WTT and JOS in transforming HKBN to an integrated telecom and technology solutions powerhouse.
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Residential Solutions: successful integrated multi-play drove ARPU growth
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During the year, customers have shown good receptiveness to our quad-play offerings whereby our triple/quad-play upsell has reached 50% of total broadband customers as at 31 August 2020. Excluding the impact of one-month service fee waiver given to customers to relieve their household financial burdens due to COVID-19, our Residential Solutions revenue increased by 0.4% year-on-year to HK$2,483 million. Historical full base residential ARPU has increased from HK$185/month to HK$190/month. We will continue to expand quad-play bundle plans to infinite-play to drive ARPU and subscription growth and disrupt the legacy standalone broadband, fixed-voice, multimedia content and mobile services.
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1-HKBN Strategy with interest alignment to maximise synergies for growth
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“HKBN saw proven success integrating five add-on acquisitions since management buyout in 2012, especially in driving market leading growth with interest alignment through our Co-Ownership plans. With the collective efforts of our over 5,900 Talents led by around 990 Co-Owners to deliver disruptive innovations for stakeholders, and by transforming our enterprise customers into our business partners, we are in an enviable position to grow in these tough times,’’ said our Co-Owner and Executive Vice-chairman William Yeung, and our Co-Owner and Group CEO NiQ Lai.
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For more details of our FY20 results, please refer to the links below
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29 October 2020
HKBN Ltd.
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