Hutchison Telecommunications Hong Kong Holdings (215) H2 2024 earnings summary

Executive summary

• Achieved break-even with a net profit of HKD 6 million in 2024, reversing a loss in 2023, supported by strong roaming revenue, disciplined cost management, and interest income.

• 5G customer base penetration reached 54%, with 5G Home Broadband revenue up 69% and enterprise market revenue up 61% year-on-year.

• Roaming revenue increased 36% year-on-year, surpassing pre-pandemic levels, with over half of postpaid customers using roaming services.

• Customer base expanded 17% to 4.64 million, mainly from prepaid subscriptions and SoSIM growth.

• SUPREME premium brand customer base grew 29%, ARPU up 12%.

Financial highlights

• Total revenue was HK$4,782 million, down 2% year-on-year; service revenue rose 1% to HK$3,561 million, with roaming service revenue up 30% to HK$684 million.

• EBITDA increased 4% to HK$1,522 million; EBIT improved 88% year-on-year.

• Operating expenses reduced by 5% through cost discipline.

• Net interest income was HK$98 million, slightly down from HK$101 million in 2023.

• Final dividend declared at 5.21 HK cents per share, full year dividend at 7.49 HK cents.

Outlook and guidance

• Focus on strengthening roaming offerings, SoSIM prepaid segment, and digital platforms to drive revenue growth in 2025.

• Capital expenditure expected to remain stable in 2025, with focus on network optimization and digital transformation.

• Plans to expand prepaid wholesale business overseas and capitalize on CPaaS opportunities.

• Cautiously optimistic outlook for 2025 amid global economic uncertainties and trade conflicts.

• Emphasis on leveraging AI and big data for customer engagement and operational efficiency.