Hutchison Telecommunications Hong Kong Holdings (215) H1 2024 earnings summary

Executive summary

• Total revenue for 1H 2024 declined 12% year-over-year to HK$2,058 million, mainly due to lower hardware sales and changes in consumer spending, despite a 31% increase in roaming service revenue and robust prepaid and 5G segment growth.

• Loss attributable to shareholders narrowed by 37% to HK$12 million, with loss per share at 0.25 HK cents.

• Customer base expanded 25% year-over-year to 4.3 million, driven by a 46% increase in prepaid customers and 5G penetration rising to 51%.

• Interim dividend maintained at 2.28 HK cents per share.

• SUPREME ARPU outperformed non-SUPREME by 277% in 1H 2024.

Financial highlights

• Service revenue decreased 2% year-over-year to HK$1,760 million, as roaming gains offset local service declines.

• EBITDA remained stable at HK$728 million, supported by cost-saving initiatives.

• LBIT improved 14% to HK$30 million, mainly due to lower depreciation and amortisation.

• Net interest and other finance income increased 13% to HK$52 million, reflecting higher bank interest rates.

• Cash and bank balances stood at HK$3,630 million as of 30 June 2024.

Outlook and guidance

• Management remains cautious amid ongoing macroeconomic uncertainties and expects continued challenges for the remainder of 2024.

• The Group targets a turnaround in profitability for the full year and will dynamically adjust operating plans and capital investments.

• Focus on driving growth in roaming, leveraging Greater Bay Area demand.

• Continued expansion in SOSIM prepaid business to reinforce market leadership.

• Sustainability and employee welfare remain core priorities alongside financial performance.