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CITIC Telecom Announces 2021 Interim Results
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Profit attributable to equity shareholders Exceeds HK$534 Million Interim Dividend of HK5.5 Cents per Share
(19 August 2021, Hong Kong) - CITIC Telecom International Holdings Limited (“CITIC Telecom” or the “Group”; stock code: 1883), Asia-leading multinational internet-oriented telecommunications enterprise providing comprehensive services, reported profit attributable to equity shareholders of HK$534 million for the six months ended 30 June 2021, representing a period-on-period increase of 4.3%, or 2.1%, excluding the effect of investment property revaluation.
The Group reported HK$3,993 million in revenue from its principal telecommunications services business, similar to the corresponding period of last year. The Group’s total revenue amounted to HK$4,795 million, an increase of 9.4% period-on-period. Basic earnings per share was up by 3.6% period-on-period to HK14.5 cents.
The Board declared an interim dividend of HK5.5 cents per
share for 2021, up by 10.0% period-on-period.
Mr. XIN Yue Jiang, Chairman of CITIC Telecom, said, “During the first half of 2021, the prospects for economic recovery were less than certain as the COVID-19 pandemic persisted. Thanks to the vigorous and diligent effort of all our staff against pressure and difficulties with a strengthened emphasis on team building, market development and technological innovation, our capability in corporate operation and management has been further enhanced and we have provided a high-quality stable network operation. The Group continued to implement rigorous epidemic prevention and control measures without easing to safeguard staff health, while reporting positive growth in overall operations and ongoing enhancement in business results."
The Group maintained a healthy financial position and
adequate cash flow. As at 30 June 2021, the Group had cash and bank deposits of
approximately HK$1,524 million, sufficient to cover its financial obligations
and contractual capital commitments in the next 12 months.
Business Highlights
CTM became the first carrier to provide complete 5G network
connection in Macau, ready to seize development opportunity in the imminent 5G
market. As at the end of June 2021, the Group had 45.4% share of the mobile
market and 47.0% share of the 4G market in Macau, maintaining leadership in the
market. During the period, the Group's subsidiary Companhia de Telecomunicações
de Macau, S.A.R.L. ("CTM") overcame various difficulties and
completed its Phase II 5G network construction in June in accordance with the
original plan, seizing development opportunity in the imminent 5G market. CTM
successfully completed the deployment of non-standalone networks (NSA),
standalone networks (SA) and network slicing to provide full outdoor coverage
and 93% indoor coverage, as it became the first carrier to provide complete 5G
network connection in Macau. Meanwhile, CTM entered into 5G roaming agreements
with more than 40 telecommunications carriers in different countries and
regions. Revenue from mobile services amounted to HK$427 million, down by 13.4%
period-on-period, mainly due to the reduction in roaming-related services
caused by the pandemic.
Revenue increased driven by new requirements for internet
services in the society and actively promoting fibre broadband. Revenue of
internet services amounted to HK$604 million, up by 9.4% period-on-period. The
Group procured ongoing growth for the segment by winning over customers on the
back of premium services designed in close tandem with the new requirements for
internet services in the society. As at the end of June, CTM has an approximate
97.1% share of Macau’s internet service market, sustaining a dominant position
in the industry. The fibrelisation rate of residential broadband users reached
95.9%. Phase III (B) of the Group’s CITIC Telecom Tower Data Centre was
completed successfully in late June and has been put into the market with good
response.
Growth momentum sustained in messaging services revenue and
growth continued on international telecommunications services. During the
period, revenue from international telecommunications services business was
HK$1,287 million, an increase of 10.5% period-on-period. The Group continued to
enhance its platform capability and diversify into new business sectors
offering swift, efficient and reliable services to support telecommunications
carriers’ global business expansion. In March 2021, the Group successfully
assisted the launch of new roaming service products by a Chinese carrier. In
May, the Group provided customised Internet of Things (“IoT”) platform to a
renowned automobile manufacturer and the service went into operation
successfully and commenced commercial operation smoothly.
Expanded network coverage and enhanced enterprise customers’
service capabilities. CITIC Telecom International CPC Limited (“CPC”), the Group’s
subsidiary, continued to expand its global network coverage, bringing the total
number of PoPs in its global network to over 160 and the total number of global
SD-WAN gateways to 57. Enterprise solutions revenue was HK$1,583 million, down
by 7.9% against the last corresponding period. The decrease was mainly due to
the volatile pandemic situation in Southeast Asia and other regions, which
delayed the progress of a number of governments, resorts and other enterprises’
projects in those countries/regions. However, the Group continued to report
growth in enterprise solutions services in Mainland China.
The Group continued to enhance greatly its business
development in Southeast Asia. During the first half of 2021, Acclivis
Technologies and Solutions Pte. Ltd. (“Acclivis”), the Group’s subsidiary, set
up a subsidiary in the Philippines to explore new markets, while diversifying
into the new business of corporate mobile services in Malaysia. Riding on its
technical capabilities, Acclivis won the IT system service project of
Singapore’s Ministry of Social and Family Development to further strengthen
cooperation with the government agencies of Singapore. It has also successfully
completed the proof of concept for a smart visitor management solution for one
of the largest medical institutions in Singapore, which involves the use of
artificial intelligence (“AI”) in performing visual analysis, enhancing
management capability and optimising visitors’ experience.
Development Strategies
Looking ahead, CTM is in hope of obtaining a 5G licence this
year, the Group will actively cooperate with the Macau SAR Government on
matters in relation to the issuance of 5G licence and arrangements for
concession assets. It will also render strong support for CTM’s effort in
building the "Digital Macau", collaborating with various sectors in
Macau to develop smart applications and build a smart ecosystem in a joint
effort to construct the city’s "digital pedestal", with a view to
supporting Macau’s ongoing development of digital economy with highly reliable
quality in network services.
As for internet business, the Group will continue to enrich
the functions of its product platform and procure the development of the
platform and building of an ecosystem. Phase III (B) of the Group’s CITIC
Telecom Tower Data Centre will be actively marketed, the Group will strengthen
cooperation with carriers in a bid to seek expansion in the global market.
Furthermore, on the back of sound customer relationships and
a foundation in the market, CPC will continue to enhance the development of its
global corporate service business, improve servicing capabilities and keep
innovating cooperation models to increase the scale and value of its corporate
service business. It will also step up its development from ICT (Information
and Communications Technology) to DICT (Data, Information and Communications
Technology).
Adhering to its “R-R-L” (recurring, regional, large-scale)
strategy, the Group will continue to drive the development of its ICT business
in Southeast Asia and expand the "Acclivis" and "Pacific
Internet" brands to more Southeast Asian countries. It will capitalise on
regional economic development opportunities arising from the RCEP (Regional
Comprehensive Economic Partnership) in order to increase the business scale in
the region.
At the same time, the Group will continue to enhance
technological innovation to foster new core competitiveness with innovative
networks, products, services and ecosystem and expedite progress of
"Internet-based", "Cloud-based" and
"Intelligence-based" development to support high-level development
and digital transformation of enterprises, with a view to assuming an
advantageous position in market competition during the new development stage.
Mr. CAI Dawei, Chief Executive Officer of CITIC Telecom, said, "The Group will continue to devote our best effort to drive sci-tech
innovation, with innovative networks, services, products and ecosystem to
support enterprises in pursuing digital, intelligent and global transformation.
The Group will insist on rooting in Mainland China, taking Hong Kong and Macau
as the base and connection, expanding in depth into the Southeast Asian
markets, practicing the ‘tripartite’ synergy system and grasp 5G development
opportunities, thereby realise our full year goals."
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