HONG KONG, April 21, 2009 – PCCW Limited today reported the annual results for the year ended December 31, 2008. Some key figures are as follows:
- Core revenue increased by 7% to HK$22,008 million; consolidated revenue including PCPD increased by 35% to HK$31,951 million, reflecting higher property development revenue recognized (note)
- Core EBITDA increased by 3% to HK$6,714 million; consolidated EBITDA including PCPD increased by 9% to HK$7,982 million. Core segment results and consolidated segment results decreased by 14% and 12% to HK$2,837 million and HK$3,529 million respectively (note)
- Profit attributable to equity holders of the Company decreased by 15% to HK$1,272 million, mainly due to higher customer acquisition costs, a deficit on revaluation of investment properties and impairment provisions of investments
- Basic earnings per share of 18.78 HK cents
The Group's core businesses performed satisfactorily in the first three quarters, but were adversely affected in the fourth quarter by the deteriorating global economic conditions.
Core revenue for the year ended December 31, 2008 was up 7% to HK$22,008 million due to higher revenue contributions from TV & Content and Mobile businesses and steady revenue growth in Telecommunications Services and PCCW Solutions businesses. Consolidated revenue including PCPD was HK$31,951 million, compared with HK$23,715 million a year ago, reflecting higher property development revenue recognized from the Bel-Air project during 2008. Due to the current court proceedings, the Board has decided to defer its consideration of a final dividend.
Group Managing Director Alex Arena said PCCW had benefited from a relatively long spell of economic buoyancy that prompted private and public sector investment in Information & Communications Technologies. However, the momentum generated by these upbeat conditions could only be maintained for the greater part of 2008.
"The Company began to experience a noticeable impact on its businesses in the last quarter of 2008. Management introduced precautionary cost control measures to strengthen the financial integrity of the Company, while making sure that service quality was not compromised. This has been possible because of the Company's continued substantial investment in technology and infrastructure in previous years," he said.
"We must tackle 2009 with caution. We must manage all our costs prudently and responsibly, including judicious prioritization of capital expenditures. Management and the rest of the staff will work together to ensure our operations are run as efficiently as possible and customers receive a pleasant experience when dealing with us. In this difficult and competitive environment, retention of customers is a focus."
For further details of the 2008 annual results, please refer to the announcement that has been filed with the Stock Exchange of Hong Kong.
Note: Core revenue refers to Group consolidated revenue excluding Pacific Century Premium Developments Limited ("PCPD"), the Group's property development and investment business; core EBITDA refers to Group consolidated EBITDA excluding PCPD; and core segment results refer to Group consolidated segment results excluding PCPD.
About PCCW Limited
PCCW Limited (SEHK:0008) is the holding company of HKT Group Holdings Limited (HKT), Hong Kong's premier telecommunications provider and a world-class player in Information and Communications Technologies. PCCW also holds a majority interest in Pacific Century Premium Developments Limited, and overseas investments including the wholly-owned UK Broadband Limited.
As the provider of Hong Kong's first quadruple-play experience, PCCW/HKT offers a range of innovative media content and services across four platforms – fixed-line, broadband Internet access, TV and mobile. In addition, the Group meets the sophisticated needs of the local and international business community, while supporting network operators with cutting-edge technical services and handling large-scale IT outsourcing projects for public and private sector organizations. To learn more about PCCW and HKT, please visit www.pccw.com.
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