PCCW reports solid interim financial performance

The directors of PCCW Limited (“PCCW” or the “Company”) are pleased to announce the unaudited consolidated results of the Company and its subsidiaries (collectively the “Group”) for the six months ended June 30, 2013. Some key figures are as follows:

·       Core revenue increased by 16% to HK$12,815 million; consolidated revenue (including PCPD) increased by 12% to HK$13,314 million

·       Core EBITDA increased by 7% to HK$3,936 million; consolidated EBITDA (including PCPD) increased by 3% to HK$3,946 million

·       Consolidated profit attributable to equity holders of the Company increased by 2% to HK$856 million; basic earnings per share amounted to 11.79 HK cents

·       Interim dividend of 6.35 HK cents per ordinary share

PCCW reported a set of solid financial results for the six months ended June 30, 2013, which was attributable to satisfactory performance of all core segments.

Core revenue for the six months ended June 30, 2013 increased by 16% to HK$12,815 million, with core EBITDA increasing by 7% to HK$3,936 million. Consolidated revenue for the six months ended June 30, 2013 increased by 12% to HK$13,314 million and consolidated EBITDA increased by 3% to HK$3,946 million, despite lower revenue and EBITDA contributions from PCPD.

The board of Directors has resolved to declare an interim dividend of 6.35 HK cents per ordinary share for the six months ended June 30, 2013.

PCCW Group Managing Director, Mr. George Chan, said, “Riding on the sustained growth momentum of HKT, our efforts to grow the Media and Solutions businesses are now starting to come to fruition, especially in light of the growth of the Solutions business.”

Mr. Chan said that, as a source of stable cash flow for the Group, HKT had fortified its market position in the fiber broadband, mobile and international connectivity businesses. HKT’s strategy to provide leading-edge network platforms, ultra-high fixed and mobile transmission speeds, an integrated user experience, and new services that enrich modern lifestyles, should position it for further growth.

On the Media business, the Barclays Premier League has generated an encouraging response to subscribe and upgrade to now TV’s higher-value packages. We expect this momentum to accelerate in the second half of the year, and are confident of the continued monetization of this valuable property in the coming periods. International expansion of the Media business, which saw satisfactory progress in the first half, will act as another growth engine in the medium term.

cont’d…

Given its proven track record and the trend of IT outsourcing and cloud computing, the momentum in the Solutions business should continue into the second half of the year. Furthermore, the business has made prudent acquisitions to expand its core competencies and geographical reach, which is integral to its strategy to complement its organic growth to drive medium and long-term profitability.

Following the fruitful completion of the Bel-Air project, PCPD is now entering a new investment cycle with the commencement of a new development in Indonesia with a view to achieving long-term growth and profitability.

Mr. Chan said, “Barring any unforeseen circumstances, we remain optimistic that the full year results will be able to reflect our dedicated efforts to grow the Company for the benefits of shareholders.”