PCCW Reports Audited Consolidated 2001 Final Results

  • Satisfactory operating performance - Net profit of US$243 million (HK$1,892 million)
  • Ebitda growth of 20 percent and improved Ebitda margins from 30 to 34 percent
  • Basic earnings per share of 8.46 cents (HK$)
  • Solid capital structure - Debt paid down, debt maturity period lengthened
  • Growth areas show traction

Hong Kong March 20, 2002 - PCCW (SEHK: 0008, ADR-NYSE: PCW) today announced its first full-year financial results since its acquisition of Cable & Wireless HKT Limited in August 2000.

Audited 2001 results achieved revenues of US$2,815 million (HK$21,959 million), operating profit (before net gains/losses on investments and provisions for impairment losses) of US$612 million (HK$4,774 million), and recorded a profit for the year attributable to shareholders of US$243 million (HK$1,892 million), which equated to a basic earnings per share of 8.46 cents (HK$).

To provide a clearer picture of its performance, PCCW released unaudited financial data for the year ended December 31, 2000. On a pro forma basis, 2001 revenue grew 6 percent.

Ebitda* for 2001 grew 20 percent to US$948 million (HK$7,396 million), with an enhanced Ebitda margin from 30 percent pro forma to 34 percent as a result of efficiency initiatives.

"Our integrated communications business produced a satisfactory performance, considering this was an extremely difficult year for the industry as a whole," said PCCW Chairman and Chief Executive Richard Li.

"Against this difficult backdrop, PCCW was able to maintain a stable core telecommunications business, reduce total debt, continue our prudent investment strategy while cutting costs. We have recorded growth and improved margins overall."

In 2001, PCCW made significant progress in the following key areas:

1. Efficiency. PCCW made efficiency gains in this period with a 9 percent reduction in operating expenditure, excluding depreciation and amortization, and a 41 percent reduction in capital expenditure, which in turn enhanced cash flow.

2. Solid capital structure. PCCW established a solid capital structure through lengthening the maturity of its debt and the repayment of US$559 million from internal resources.

3. A customer-centric approach. PCCW increased its focus on the customer, reorganizing into Consumer and Commercial groups to provide solutions to household and enterprise customers.

4. Broadband growth. PCCW continued to experience strong broadband uptake with a 43 percent increase in wholesale broadband access lines to 402,000, and a 60 percent increase in retail Internet broadband customers to 311,000 as of December 31, 2001.

5. Key business unit growth. PCCW's Business eSolutions continued its growth by capturing major contracts during 2001 and continuing to enhance the core connectivity business.

Looking forward, Mr. Li said PCCW's operational priorities for 2002 are to continue to maximize operating efficiencies, deliver stable results from its core telecommunications businesses, build growth businesses in value-added services and develop regional opportunities, especially in greater China.

"We are committed to increasing shareholders' value," said Mr. Li, adding PCCW's future prospects are solid, underpinned by strong recurring cash flows.

PCCW's Board of Directors has concluded that no final dividend will be paid for 2001.

About PCCW

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. 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.

To learn more about PCCW, go to

For Media inquiries:
Joan WagnerVP, Corporate Communications (International)
Tel: +852 2514 8883
For Investor Relations inquiries:
Garth Collier Director of Investor Relations
Tel: +852 2514 5084

Chairman's Address

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