Hong Kong September 6, 2001 - PCCW (SEHK: 0008, ADR NYSE: PCW)
PCCW today released its interim results for the first six months of 2001, the first full reporting period since the August, 2000 merger of PCCW and C&W HKT.
PCCW reported consolidated group turnover of HK$11,312 million (US$1,450 million) and profit attributable to shareholders of HK$935 million (US$120 million). Consolidated EBITDA1 was HK$3,911 million (US$501 million), with a EBITDA margin of approximately 35 percent. Earnings per share was HK$0.0422 (basic).
On an unaudited pro forma basis, comparing the June 30, 2001 results to the June 30, 2000 pre-merger results of the companies, revenue rose by 12 percent and EBITDA increased 15 percent.
"Our integrated business has performed satisfactorily in a difficult economic climate, giving us continued confidence in our business strategy," said Richard Li, Executive Chairman.
"While the core telecommunications business was the major contributor to revenue and EBITDA, continued progress in our new high growth businesses has enhanced our overall revenue growth. We believe this is crucial to supporting and growing our core connectivity services", Li said.
Li presented the interim results to journalists and financial analysts this afternoon along with David Prince, Chief Financial Officer of PCCW.
PCCW's financial reporting for the 6 months to June, 2001 was consistent with new policies set forth by the Hong Kong Society of Accountants as recently as June of this year and PCCW has adjusted its 2000 results accordingly.
David Prince stated: "The one-time accounting adjustments would not affect operations or cash flow at PCCW. The Group is pleased with the performance of our joint venture alliance with Telstra, completed in February 2001. In relation to our joint venture investments in Reach and CSL, the carrying value in PCCW's accounts is consistent with those most recently attributed by Telstra."
Looking ahead, despite the softening economic outlook in Hong Kong, the Company stated, "PCCW is strongly positioned to continue its transformation to meet the increasingly complex communications and IT solutions needs of customers in the Asia region and is cautiously optimistic on its outlook for the rest of the year".
1EBITDA represents earnings before interest, taxation, depreciation and amortisation, as adjusted for net gain on investments, loss on disposal of fixed assets and other income.
Pacific Century CyberWorks Limited (SEHK: 0008, ADR-NYSE: PCW), the Hong Kong-listed flagship of the Pacific Century Group, is one of Asia's leading integrated communications companies. From its market-leading position in Hong Kong, PCCW is focused on building shareholder value by leveraging synergies between its core businesses and partners, and by delivering customer-led total solutions throughout Asia, particularly in greater China. PCCW provides key services in the areas of: integrated telecommunications; broadband solutions; mobility and connectivity; narrowband and interactive broadband (Internet Services); business e-solutions; data centers and related infrastructure.
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