CITIC Telecom Announces 2022 Interim Results
Overall development reaches a new height with record-high operating results
Profit attributable to equity shareholders up 7.1% year-on-year to HK$572 million
Interim dividends HK6.0 cents per share up 9.1% compared with the same period last year
(17 August 2022, 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, reported profit attributable to equity shareholders of HK$572 million for the six months ended 30 June 2022, representing a year-on-year increase of 7.1%, or 7.6% if excluding the effect of investment property valuation.
The Group reported HK$4,393 million in revenue from its principle telecommunications services business, representing a year-on-year increase of 10.0% compared to the corresponding period of last year. Total revenue amounted to HK$4,977 million, an increase of 3.8% year-on-year. Basic earnings per share was up 6.9% to HK15.5 cents.
The Board declared an interim dividend of HK6.0 cents per share for 2022, an increase of 9.1% as compared to the corresponding period of last year.
Mr. XIN Yue Jiang, Chairman of CITIC Telecom, said, “During the first half of 2022, against the manifold challenges posed by complicated and austere international situations and the impact of the pandemic, staff members of the company strived forward against adverse conditions in a united effort with confidence and diligence in fulfilment of its mission. We seized opportunities for development with an unwavering focus to explore new markets, businesses and customers with our full force. Meanwhile, the Group has continued to enhance its technological innovation and our technology and innovation regime has been fortified with an increase in R&D investment. The Group has enhanced its platform capability, broadened its scope of service as we took our overall corporate development to a new height and reported yet again record-high operating results.”
The Group has maintained a healthy financial position and a stable cash flow. As at 30 June 2022, the Group recorded cash and deposits of approximately HK$1,721 million, sufficient to meet its financial obligations and contractual capital commitments in the coming 12 months.
Companhia de Telecomunicações de Macau, S.A.R.L. (“CTM”) completed 5G roaming tests with overseas network carriers in full preparation for the launch of 5G service. As at the end of June 2022, CTM had an approximate 46.4% share of Macau’s mobile market, and 47.5% share of the 4G market in Macau, as it continued to uphold its leading position in the Macau market. During the period, stable progress has been made in 5G development, as the Group completed 5G roaming tests with 68 overseas network carriers.
Revenue from internet business increased as driven by rising business internet requirements and an increase in revenue from fiber broadband service. The Group’s internet services revenue amounted to HK$649 million, representing a year-on-year increase of 7.5%, mainly driven by rising business internet requirements and the service upgrade by existing customers and the year-on-year increase of around 2.1% in the number of broadband users to over 200,600 subscribers. Moreover, the Group has seized the development opportunity for data centres, as Phase III (B) of CITIC Telecom Tower Data Centre has launched its service in the market and smoothly commenced business, while the data centre businesses in Beijing, Shanghai and Guangdong have also reported sound progress.
International telecommunications business recorded a substantial growth due to a surge in revenue from messaging services. Revenue from international telecommunications services amounted to HK$1,715 million, representing a year-on-year increase of 33.3% as compared to the corresponding period of last year. Due to the continued increase in demand from corporate messaging delivery, messaging services revenue surged 44.3% to HK$1,206 million when compared to the corresponding period of last year, and voice services revenue increased by 14.8% to HK$496 million, as compared to the corresponding period of 2021.
Continuing to drive digital and intelligent development of corporations, and deeply cultivate the enterprise service market. CITIC Telecom International CPC Limited (“CPC”), a subsidiary of the Group, has optimised the deployment of its global network and infrastructure facilities to build a safe and stable global network, as CPC now operates more than 160 PoPs in the global network, with the services covering more than 150 countries and regions, having added new PoPs in Wuhu, Anhui and Zhaoqing, Guangdong. Moreover, CPC has enhanced its competitiveness in the cloud computing market with the commencement of the public cloud MSP business and the launch of the SmartCLOUD™ Container Services. While 19 cloud computing service centres supported by the 10 leading cloud computing solutions, the Group has formed a cross-regional, global operating network for cloud computing services.
Engaging in a full effort to explore new markets in Southeast Asia, and reported steady increase in the number of customers served. During the period, Acclivis Technologies and Solutions Pte. Ltd., a subsidiary of the Group, successfully secured a new contract for the construction of ICT facilities in Malaysia, rendering robust support for the expansion of the Group’s business scale in Southeast Asian new markets. Moreover, in the continuous effort to expand into the regional market, the Group successfully secured an ISP license in Indonesia.
Looking forward, the Group will drive commercialisation of the digital sector and digitalisation of the industrial sector for vigorous engagement in the development of the digital economy in active response to market changes, playing a more significant role in the process of allowing enterprises to “reach out” and “bring in”. Meanwhile, the Group will also strengthen cooperation with strategic partners, and seek global expansion with full force to fortify the position as an international hub for telecoms services.
As for the 5G construction, the Macau SAR Government published the 5G tender announcement on 30 June 2022. CTM will support the SAR Government with full force and vigorously participate in the 5G tender to ensure the instantaneous launch of 5G commercial services, expedite customer upgrades and improve customer experience to maintain its leading position in Macau’s communication industry.
The Group will enhance regional expansion and the promotion of smart-city applications by actively extending the reach to Guangdong-Macao In-depth Cooperation Zone in Hengqin. The Group will also seize the opportunity presented by the gradual resumption of business and travel in the Southeast Asian countries, striving to expand the customer base, increase the recurring revenue from telecoms services and management services, and explore large-scale ICT projects to further expand the Group’s business scale.
The Group will also step up with development in technology and innovation. The Group will construct a technology research and development regime based on “ICT-MiiND” development strategy with a special focus on innovation in new frontiers such as cloud-net integration, digital transformation and industry applications to enhance the cloudification, internet-based operation and intelligentisation of the corporation through digital transformation, in a full effort to develop a “cloud, network, smart and security” platform and accelerate the deployment and development in corporate digital transformation and economic digitalisation.
Mr. XIN Yue Jiang, Chairman of CITIC Telecom, said, “The Group will continue driving technological innovation and ensure quality remains its priority. It will support the construction of ‘Digital Macau’ with the 5G network, broaden the smart city capabilities with 5G applications, expand into international markets with high-quality cross-border services, accelerate the digital transformation with the ‘cloud, network, smart and security’, and create new core competitive edges through technological innovation. In addition, it will solidify its foundation in the Chinese mainland market, using Hong Kong and Macau as a base and connection, accelerate the expansion and coverage of the international market, and strive to transition from Asia-Pacific leading to world-leading position, so as to create better returns for shareholders.”