CITIC Telecom Achieved Record-high Operating Results in 2022
Profit attributable to equity shareholders up 10.7% year-on-year to HK$1,191 million
Total dividends per share increased by 8.9% year-on-year to HK24.5 cents
16 March 2023, Hong Kong — CITIC Telecom International Holdings Limited (“CITIC Telecom” or the “Group”; stock code: 1883), Asia-Pacific leading multinational internet-oriented telecommunications enterprise providing comprehensive services, has reported profit attributable to equity shareholders of the Company of HK$1,191 million for the year ended 31 December 2022, representing a year-on-year increase of 10.7%, or a 12.8% increase if the effect of investment property valuation is excluded.
The Group’s total revenue amounted to HK$10,111 million, representing a year-on-year increase of 6.6%. The Group’s revenue from telecommunications services amounted to HK$8,831 million, representing an increase of 11.7% when compared with the previous year. Basic earnings per share was up 10.2% to HK32.3 cents.
The Board has recommended a final dividend of HK18.5 cents per share for 2022. Together with the 2022 interim dividend of HK6.0 cents per share, total dividends per share for 2022 amounted to HK24.5 cents, representing a growth of 8.9% over the previous year.
Mr. XIN Yue Jiang, Chairman of CITIC Telecom, said, “In 2022, against manifold challenges such as the severe impact of the pandemic and austere and complicated international economic conditions, our team was united to overcome all adversities, actively devoted in major national development plans such as “Belt and Road Initiative” and Guangdong-Hong Kong-Macao Greater Bay Area, through vigorous development in new markets, products and businesses. Our unwavering persistence in innovative development and creating new niches to garner new achievements, have ultimately allowed us to chart new horizons in our overall corporate development and report record-high operating results.”
The Group has maintained a healthy financial position and stable cash flows. As at 31 December 2022, the Group recorded cash and deposits of approximately HK$1,986 million, which is sufficient to meet its financial obligations and contractual capital commitments in the coming 12 months. The Group has also actively reduced its debt and continued to optimise its net gearing ratio. As at 31 December 2022, the Group’s net gearing ratio further declined to 20% (31 December 2021: 27%).
Companhia de Telecomunicações de Macau, S.A.R.L. (“CTM”) was awarded the 5G licence of Macau on 7 November 2022 and officially launched its 5G service on 14 November, thus becoming the first carrier to offer 5G services in Macau. To capture the 5G market, CTM had more than 10,000 registered 5G users on the launch day, and had over 50,000 registered 5G users by the end of the first month of 5G service. At present (15 March 2023), CTM had more than 150,000 registered 5G users. At the same time, CTM has invited its partners to form the “Macau 5G Smart Service Development Alliance” in a bid to deepen cooperation in the 5G application ecosystem and advance the digitalisation of Macau by joining forces with various sectors. Mobile services revenue dropped 3.6% to HK$827 million when compared with the previous year as pandemic-related disruptions persisted throughout the year, which adversely impacted on the revenue of roaming-related services. Moreover, sales of mobile handsets and equipment dropped 19.0% year-on-year to HK$1,280 million.
Revenue from the internet business continued to increase driven by rising business internet requirements and demand for fibre broadband service. The Group’s internet services revenue amounted to HK$1,331 million for the year, which represented a year-on-year increase of 7.1%. The growth was mainly driven by the development of the digital economy and the advancement of internet technology which led to higher business internet requirements and increased demand for internet and data centre services. Furthermore, the increase in the number of broadband users by approximately 1.0% to over 202,000 subscribers contributed to the rise in revenue from fibre broadband service. As for the data centre business, stable revenue growth was recorded, with strong data centre sales growth realised in Hong Kong. CITIC Telecom Tower Data Centre Phase III (B) has achieved solid sales, and successfully attracted a financial institution joining with a potential reservation of additional spaces in the new data hall.
Continuous surge in revenue from messaging services lead to substantial growth of international telecommunications business. Revenue from international telecommunications services increased by 40.3% year-on-year to HK$3,453 million. In addition, messaging services revenue surged 52.4% year-on-year to HK$2,558 million due to growing demand from corporate messaging delivery, while voice services revenue increased by 15.7% over the previous year to HK$868 million.
Accelerate the development of “cloud-net smart security” products, expand network coverage and enhance service capabilities. CITIC Telecom International CPC Limited (“CPC”), a subsidiary of the Group, is leading the product development with innovation trend. Notably, its SD-WAN SASE product has successfully passed multiple tests of “SD-WAN Ready 2.0 SASE Service” from Beijing Main Laboratory of Cloud Computing Standards and Testing Verification, and the Standards Promotion Committee of the China Communications Standards Association of China Academy of Information of Communications Technology. Furthermore, the product was awarded the “SD-WAN Ready 2.0” certificate and its technical strength has been well recognised by industry authorities. The Group’s enterprise solutions services have consequently experienced encouraging and continuous growth in Chinese mainland and Southeast Asia.
Underpin vigorous development of new markets, products and businesses in Southeast Asian market. During the year, the Group successfully received the ISP business permit in Indonesia, registered the “Pacific Internet” brand in Vietnam, and secured a new contract for the construction of ICT facilities in Malaysia, which has achieved good progress with more than half of the construction work already completed. The Group has entered into a cooperation agreement with a partner to jointly provide premium cloud service and ICT solutions to corporate customers in Southeast Asia.
In 2023, global economic development remains subject to uncertainties in various aspects. Nevertheless, opportunities as well as challenges coexist. The Group will therefore stay clear-headed and persist in innovative development, actively pursue innovation and accelerate digital transformation, enhance business competitiveness and ultimately become a premier international internet-oriented telecommunications enterprise.
The Group will maintain its dominant market position as the leading carrier in Macau, fully leveraging the advantages on 5G network resources and its position as the first mover in commercial 5G services, to enrich 5G industrial application in collaboration with various sectors of the community. The Group will integrate upstream and downstream 5G industry chains to form a 5G industry ecosystem for the benefit of digitalisation and smart city development in Macau. To actively support the key policies of the Macau SAR Government, the Group will also diligently investigate development opportunities relating to the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.
As the Group continues to implement its “ICT-MiiND” development strategy, it will strengthen and optimise its technological innovation regimes in Guangzhou, Hong Kong, Zhuhai (Macau) to enhance its capabilities in technological innovation and drive cross-regional technological integration and conversion. With emphasis especially on developing applications from frontier technologies such as AI and Big Data, the Group will drive the conversion of patent rights into marketable products and solutions, in order to enhance its corporate competitiveness and facilitate development of the enterprise.
Mr. XIN Yue Jiang, Chairman of CITIC Telecom, said, “In 2023, the Group will set new development goals and formulate stringent new development measures. The Group will also seize opportunities arising from the advancement of the Guangdong-Hong Kong-Macao Greater Bay Area and ‘Belt and Road Initiative’. While maintaining a global vision, we will focus on regional development in both the Greater Bay Area and Southeast Asia. We will work diligently and in a detail-oriented and high-spirited manner as we promote the long-term steady and high-quality development of the Group and deliver higher returns to shareholders.”