CITIC Telecom Announces 2023 Interim Results
Corporate development reaches new heights
with record operating results
Profit attributable to equity shareholders up 26.0% year-on-year
to HK$721 million
Interim dividend of HK6.0 cents per share
18 August 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, reported profit attributable to equity shareholders of HK$721 million for the six months ended 30 June 2023, representing a year-on-year increase of 26.0%, or 26.3% excluding the effect of investment property valuation.
The Group recorded revenue of HK$4,690 million from its principal business of telecommunications services, representing a year-on-year increase of 6.8%. Total revenue amounted to HK$5,326 million, an increase of 7.0% year-on-year. Basic earnings per share was up 25.8% to HK19.5 cents as compared with the corresponding period of last year.
The Board declared an interim dividend of HK6.0 cents per share for 2023, which is in line with the corresponding period of the previous year.
Mr. XIN Yue Jiang, Chairman of CITIC Telecom, said, “During the first half of 2023, amid the various challenges and difficulties in development, such as the slow recovery of the global economy as well as weak growth, the Group adhered to its strategic positioning of ‘Rooted in Chinese mainland market, taking Hong Kong and Macau as the base and connection, and accelerating international expansion and coverage’. The Group is committed to exploring new markets, developing new businesses, and fully dedicating itself to the development and construction of the digital economy, which has promoted the high-quality corporate development and continuous growth of its operational performance to reach new heights.”
The Group has maintained a healthy financial position and ample cash flow. As at 30 June 2023, the Group had cash and deposits of approximately HK$1,759 million, sufficient to meet its financial obligations and contractual capital commitments for the next 12 months. The Group has also actively reduced its debt, and continued to optimise its net gearing ratio which decreased from 20% at the end of 2022 to 18% as at 30 June 2023.
Companhia de Telecomunicações de Macau, S.A.R.L. (“CTM”) went full steam ahead to construct “Digital Macau 3.0” by capitalising on the first-mover advantage in commercial 5G services. As of the end of June 2023, CTM remained the leading carrier in Macau’s mobile market with approximately 624,000 subscribers, capturing 47.5% of the total market share, which represents an increase of 1.8 percentage points compared with that at the end of 2022, among which, 5G customers amounted to approximately 316,000, securing its top position with 78.9% of the 5G market share. Meanwhile, CTM actively deployed and promoted the integration of 5G applications in the tourism, exhibition, policing, healthcare and other sectors and industries to establish a 5G cooperative ecosystem. By the end of June 2023, CTM had launched bilateral 5G roaming services with 103 overseas network operators (covering 95 countries/regions), launched bilateral 4G roaming services with 389 overseas network operators (covering 221 countries/regions) and had bilateral VoLTE roaming services with 17 overseas network operators (covering 21 countries/regions). Sales of mobile handsets and equipment also increased 8.9% year-on-year to HK$636 million.
As a result of the increase in the number of mobile subscribers, the Group’s mobile services revenue increased by 10.7% to HK$457 million as compared with the corresponding period of last year.
Revenue from the internet business continued to grow, driven by increasing business internet requirements and revenue growth of internet and data centre services. During the period, CTM completed the replacement of copper wires for internet broadband access. The fibrelisation rate increased to 100.0%, ushering in a new era of all-fibre network access for CTM’s internet broadband subscribers. As at the end of June 2023, CTM’s market share of broadband services reached 97.1%. Moreover, the Group’s data centre business achieved groundbreaking development and its high-grade data centre in Hong Kong secured a leading internet platform customer. The Group’s internet services revenue was HK$705 million, representing a year-on-year increase of 8.6%.
Revenue from international telecommunications business continued to increase. Revenue from international telecommunications services amounted to HK$1,951 million, representing a year-on-year increase of 13.8% as compared with the corresponding period of last year. Due to the increasing demand for corporate messaging delivery, messaging services revenue surged 14.4% when compared with the corresponding period of last year, and voice services revenue increased by 3.8% over the corresponding period of 2022. Benefitting from the recovery of cross-border roaming activities, service revenue from “DataMall自由行” surged by 330.8% year-on-year.
Spared no efforts to build an integrated platform of “Cloud, Network, Intelligence and Security”, and deeply cultivated the enterprise service market. CITIC Telecom International CPC Limited (“CPC”), a subsidiary of the Group, has been committed to strengthening its multi-cloud service and data application security and compliance assurance capabilities, and was recognised as the first partner of VMware Sovereign Cloud in Hong Kong. It promoted its expansion in the information security management services market continuously by launching its third Security Operations Centre in Shanghai after Hong Kong and Guangzhou, which facilitated the upgrade from “information security development” to systematic and platform-based “information security operations” for more enterprises. It also continued to broaden network coverage, and its virtual private network service covered nearly 160 countries and regions worldwide with more than 165 Points-of-Presence (PoPs) and more than 60 SD-WAN gateways as of the end of June 2023.
Actively expanded into new businesses and markets to optimise overseas business layout. During the period, Acclivis Technologies and Solutions Pte. Ltd., a subsidiary of the Group, provided new data centre managed services to the Singapore government authority, engaged in public cloud projects in Indonesia for multiple corporations including a Southeast Asian financial unicorn, incorporated AI technology to deliver drone AI painting solutions to customers, submitted an ISP licence application in the Philippines, and gradually implemented plans to tap into the Vietnamese market.
Going forward, the Group will prioritise innovation and transformation, and actively engage in product, business and model innovation to create new highlights and drive its high-quality development. Meanwhile, the Group will actively continue to strengthen the development of “DataMall自由行” and data centre businesses. It is committed to managing and expanding its international telecommunications services, optimising its platform services and consolidating its business scale.
Seizing the opportunity of Macau’s economic recovery, the Group will build a high-quality 5G network, optical fibre network, WiFi network, cloud platform and other “Cloud-Network Convergence” digital foundations to drive and create demand, enrich the smart city application ecosystem, advance the digital and intelligent development of Macau, and move towards “Digital Macau 3.0”.
The Group will further leverage the domestic and international “dual circulation” bonding and optimise its capabilities in terms of cloud, network, intelligence and security services. By upgrading and building an integrated platform of “Cloud, Network, Intelligence and Security”, it will empower enterprises to “reach out” and “bring in”. It will also take effective measures and make great efforts to accelerate the development of the digital economy.
The Group will actively expand its overseas business, keep a keen eye on the development of new markets in Southeast Asia region, enhance its ability to provide digital solutions, deepen its partnerships with government authorities, educational institutions and large corporations, and strive to acquire more quality projects to achieve innovative development.
Mr. XIN Yue Jiang, Chairman of CITIC Telecom, said, “The Group prioritises innovation and transformation and firmly adheres to its corporate belief of ‘navigating through headwinds with unwavering persistence in innovative development’. The Group attaches great importance and pays close attention to quality, talent, scientific research, and work safety. The Group is making great efforts to continuously develop new products and acquire new customers to drive long-term, healthy, and high-quality development, with the aim of delivering higher returns to shareholders.”