HKBN Reports Strong Full Year Results for FY21, Emerging Stronger and Transformed for Post COVID-19 Growth

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For immediate release

HKBN announces strong full year results for fiscal 21

Emerging Stronger and Transformed for Post COVID-19 Growth

(Hong Kong – October 28, 2021) HKBN Ltd. (“HKBN” or the “Company”; stock code SEHK: 1310) today announced strong operating and financial results for the year ended August 31, 2021 (“FY21”). Despite a difficult economic environment, HKBN’s performance remained solid in FY21 thanks to synergies from integrations and strategic partnerships with business partners. Key highlights of the FY21 results include:

  • Revenue, EBITDA and Adjusted Free Cash Flow (“AFF”) grew 21%, 3% and 2% respectively to HK $ 11,464 million, HK $ 2,569 million and HK $ 1,132 million.
  • Turnover increased by 21% year-on-year to HK $ 11,464 million, primarily driven by significant growth in smartphone sales and growth in enterprise solutions and related product revenue, driven by the full-year contribution from HKBN JOS * (FY20: eight and a half months).
  • EBITDA up 3% year-on-year to HK $ 2,569 million, which mainly contributed to lower operating expenses due to the Group’s continued efforts to improve its operational efficiency.
  • The Board of Directors recommended the payment of a final dividend of 37.5 HK cents per share (FY20: 38 HK cents per share), or a year-over-year increase in full-year payout to 76.5 HK cents per share (FY20: 75 HK cents per share).

* HKBN JOS represents HKBN JOS Holdings (CI) Limited and its subsidiaries, Adura Hong Kong Limited and ADURA CYBER SECURITY SERVICES PTE. LTD ..

Enterprise Solutions: Successful Transformation into Asia’s Leading ICT Solutions Provider Driven Customer and ARPU Growth

Despite the slowdown in business activities due to the protracted COVID-19 pandemic, HKBN’s corporate activities have seen growth in customer numbers and ARPU, which is due to the company’s efforts to transform its business activities from the pure sale of products and services to relationship management. The company has mobilized to help businesses overcome the challenges of the pandemic with a series of innovative solution offerings allowing them to continue their activities remotely and safely at affordable costs. The total number of HKBN corporate clients increased from 105,000 to 107,000 and the corporate ARPU increased from HK $ 2,948 to HK $ 3,036.

Residential Solutions: Endless Gaming Strategy Laying a Solid Foundation for Growth

Despite intense price competition, residential solutions revenue grew 1% year-on-year to HK $ 2,465 million thanks to the company’s endless gaming strategy, which includes the association with Netflix to provide more entertainment choices for customers, the expansion of

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lightning-fast 5G smart home solutions and mobile services. The monthly churn rate remained low at 0.9%. In October 2021, the company became the exclusive broadband service provider for Disney + in Hong Kong, a change that will improve customer loyalty and reward the company with higher ARPU and market share. HKBN will continue to expand its Infinite-play bundle services with a number of revolutionary services, providing households with unprecedented savings and service convenience to disrupt traditional broadband, fixed voice, content and mobile segments. autonomous.

Transformed into a stronger and more determined company

“As we continue to gain market share in our connectivity services, our synergies in ICT solutions and systems integration capabilities for enterprises, as well as our extraordinary OTT choices and our ever-expanding Infinite-play offerings. for households, will allow us to develop well beyond basic connectivity services. With our new Co-Ownership Plan IV, we will have a deeper vested interest in profiting from the post COVID-19 rebound and delivering more value to all of our stakeholders, ”said Co-Owner and Executive Vice President William Yeung, and the co-owner and CEO of the NiQ Lai group.

For more details on HKBN’s results in fiscal 21, please refer to the announcement:

https://reg.hkbn.net/WwwCMS/upload/pdf/en/e_FY21_AnnualResultsAnnouncement.pdf

Annex: Letter to shareholders

Photo caption: HKBN reported resilient growth for FY21 across all business fronts. (Left to right) Co-owner and Executive Vice-President William Yeung, and Co-owner and CEO of NiQ Lai Group.

??To finish??

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Annex

Letter to shareholders

Dear HKBN shareholders,

Growth is the name of our game

Throughout our 20-year growth journey, HKBN has demonstrated that we are a company that dares to set ambitious growth goals, and we have achieved most of them. In our opinion, if we meet all of our ambitious goals, it means that those goals were set too low, rather than being perfect in our execution. In FY18, before the social incidents in Hong Kong and the global COVID-19 pandemic, we set our condominium III + goals for FY19-21. Now that we present our results for fiscal 21, we have missed these ambitious targets. As co-owners, we have real skin in the game because we bought our shares on the open market before COVID-19 and would only get bonus shares if we hit the stretched targets. While we did not meet the ambitious III + condominium goals, stretching them pushed us to lay a much stronger foundation for higher long-term value creation.

Our new co-ownership plan IV, which was approved by shareholders at our EGM held on October 15, 2021, allows co-owners to complete and renew co-ownership investments III +, with a cumulative objective of 3 years for fiscal year 22 -24 AFF / Share HK $ 2.70 to HK $ 3.01, compared to HK $ 0.765 reached in fiscal year 21. To achieve this growth, we will need to expand beyond the mature frontiers of the retail industry. telecommunications.

In our Residential Solutions business, we are the exclusive launch partner of the broadband operator for Disney + in Hong Kong. Disney +, having reached 100 million subscribers faster than any other OTT platform in history, is a global phenomenon and is expected to create waves in Hong Kong. Our decision to deliver more extraordinary OTT choices, along with our ever-expanding infinite gaming offerings, will allow us to grow our residential business well beyond basic connectivity.

In our Enterprise Solutions business, although we are the largest alternative operator – having merged HKBN, New World Telecom and WTT – we estimate our total telecommunications market share at less than 20% in an industry with around 80% of gross margins. A low market share base and high gross margin means that we can offer very generous growth-related commissions to drive market share gains, further aided by the bundling with our JOS system integration capabilities, that we acquired during fiscal year 20.

Going through COVID-19 so far, we have truly come together as a company. With so many opportunities, our embrace of change and our agility ensure that we will emerge stronger and transformed for post COVID-19 growth.

Regards,

William yeung

NiQ Lai

Co-Owner and Executive Vice-President

Co-owner and CEO of the group

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Disclaimer

HKBN Ltd. published this content on 28 October 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on October 28, 2021 08:32:12 UTC.

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