(Hong Kong - 31 October 2024) HKBN Ltd. (“HKBN” or the “Company”; SEHK stock code: 1310) today announced its operational and financial results for the year ended 31 August 2024 (“FY24”). Despite the challenging business environment, HKBN has been able to drive long-term growth of its Enterprise Solutions and Residential Solutions business through enhancing operational efficiencies, strengthening core business performance and diversifying its business portfolio.

ANNOUNCEMENT HIGHLIGHTS

• Revenue excluding sales of handsets declined year-on-year by 1%. Total revenue decreased year-on-year by 9% to HK$10,651 million, primarily attributed to weaker than expected performance in sales of handset and other products.
• EBITDA increased year-on-year by 3% to HK$2,365 million. FY24 second half year delivered a strong EBITDA performance of HK$1,214 million or 11% year-on-year growth.
• Profit for the year was HK$10 million. In comparison, the annual loss for the previous year was HK$67 million after excluding the one-time impairment on goodwill. This positive change was largely due to the Group’s ongoing efforts to improve its core business performance and operational efficiency.
• Adjusted free cash flow (“AFF”) decreased year-on-year by 19% to HK$620 million. The prevailing high-interest rate environment was the main factor, leading to a 41% increase in net interest paid over the year. In consideration of the Company’s dividend policy and the anticipated capital expenditure requirements to drive long-term shareholder value, the Board has recommended the payment of a final dividend of 16.5 HK cents per share (FY23: 20 HK cents per share), resulting in a 21% year-on-year decrease in full year payment to 31.5 cents per share (FY23: 40 cents per share).

William Yeung, HKBN Co-Owner, Executive Vice-chairman and Group CEO said, “With the commitment of our Talents, the support of our business partners and the trust of our shareholders, we have weathered the storm and emerged stronger. Our team focused and executed resiliently to enhance the value of our high-margin core FTNS services and strengthen our system integration capabilities. Looking ahead, we will continue to execute on our aggressive goals to pioneer the delivery of Gigafast broadband services ranging from over 10Gbps to 25Gbps for both residential and enterprise markets.”

Enterprise Solutions: Solid New Business Bookings for Long-Term Growth

Enterprise Solutions business experienced a marginal year-on-year revenue decline of 1% to HK$6,675 million. However, the business has made notable progress in strengthening its core business performance and recorded a 1% increase in enterprise services revenue (excluding international telecommunications services), a result which underscores the Company’s robust capabilities in system integration. New business bookings remained solid generating a strong revenue backlog from contracts set to mature over the next 2 to 3 years. With the launch of Aegis Intelligence to upgrade its enterprise network monitoring solution, Aegis Connect, the business continues to inject innovation and add value to it’s high-margin Fixed Telecommunications Network Services, further deepening the relationship with enterprise customers.

Residential Solutions: Strengthened Infinite-play Strategy for ARPH (Average Revenue for Household) Growth

In the face of a highly competitive market environment, Residential Solutions business demonstrated resilience with a slight revenue decline of 2% to HK$2,344 million. Service revenue remained stable, mainly attributable to the Company's persistent implementation of an Infinite-play strategy to enrich its portfolio of value-added offerings and bundles, resulting in a 2% increase in residential ARPU to HK$182. The Company collaborated with AXA and Bowtie to launch home insurance and 4-in-1 healthcare service plans respectively, expanding its diversification strategy to widen market appeal and wallet share. With travel returning to pre-epidemic levels, consumer demand for roaming data rebounded sharply, leading to a significant increase in the sales of the Company’s Global SIM travel data cards.

Looking ahead to FY25, the Company will continue to streamline its operations, focusing on strengthening its residential business by enhancing its value-added offerings and boosting the competitiveness of its enterprise ICT business to further enhance its market position. Anticipating a decline in interest rates, the Company foresees solid and sustainable growth ahead.

For more details about HKBN’s results in FY24 please refer to the announcement:
https://reg.hkbn.net/WwwCMS/upload/pdf/en/e_FY24_AnnualResultsAnnouncement.pdf

Photo caption: HKBN delivered solid FY24 annual results driven by disciplined execution and unique strengths. (From left) William Yeung, HKBN Co-Owner and Executive Vice-chairman & Group CEO; and Derek Yue, HKBN Co-Owner and CFO.