PCCW expects a growth rebound in fiscal 21
Published 9 February 2021
PCCW has reported a marginal yearly increase in revenues for the fiscal year 2020, as the COVID-19 pandemic took a toll on some of its clients in sectors such as travel, hospitality and retail.
However, PCCW is seeing a rebound in hospitality, commercial segments and advertising in fiscal 2021. Revenues for the year came in at $4,878 million, a 1 per cent increase when compared to $4,810 crore posted in the fiscal 2019. Earnings Before Income Tax Depreciation and Amoritisation or EBITDA for the fiscal was down by 3 per cent at $1,536 million.
Consolidated loss attributable to equity holders of the Company for the year was HK$1,020 million, partly due to one-time non-cash accounting itemsincluding an impairment provision at PCPD, fair value movementon certain other non-core investments as well as write-off of end-of-life IT platforms. Final cash dividend was 23 HK cents per ordinary share, resulting in full-year cash dividend of 32.18HK cents per ordinary share.
In fiscal 2019, EBITDA was $1,587 million. Revenues in the fiscal climbed 12 per cent, driven by the strong demand for data center services, solid project delivery in Hong Kong and expansion in South East Asia. Recurring revenue grew by 27 per cent from data centers and managed services, PCCW said. However, project based revenue impacted by delays in project delivery as lockdowns imposed. PCCW group has ensured business continuity and delivery of high quality services to our enterprise clients and consumers in Hong Kong and in the region.
At the same time we have continued to make prudent investments to launch new products and services to capture market opportunities, the company said in an investors presentation. Revenue in the fiscal was affected by live sport suspensions and lower commercial activity in F&B segment.
Consolidated revenue, excluding Mobile product sales, were up 4 per cent to HK$35,437 million. HKT total revenue, excluding Mobile product sales, was stable at HK$29,780 million. While Now TV revenue was down 6 per cent to HK$2,512 million, OTT revenue up 11 per cent to HK$1,187 million, underpinned by 20 per cent growth in video revenue. Free TV & related business revenue up 22 per cent to HK$317 million.
Rebound of hospitality & commercial segments and in advertising. With ‘Liv’e sports returning and enhanced user interface and features to boost business growth in 2021, PCCW said. Viu subscription revenue jumped by 62 per cent; Monthly Active Users or MAU and paying subscribers grew to 45.0 million and 5.3 million, up 29 per cent and 47 per cent respectively. Further, Greater South East Asia was the largest contributor and recorded a growth of 63 per cent with strong performances in Thailand and Indonesia.