Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
OVERSEAS REGULATORY ANNOUNCEMENT
AND INSIDE INFORMATION ANNOUNCEMENT
ON THE QUARTERLY TRADING UPDATE FOR
CK HUTCHISON GROUP TELECOM HOLDINGS LIMITED
This announcement is made by CK Hutchison Holdings Limited (the "Company") pursuant to Rules 13.09(2)(a) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
The board of directors of the Company would like to draw the attention of its shareholders and potential investors to the appended filing attaching the presentation of 2021 Q1 trading update, which contains certain unaudited financial information in relation to the performance of CK Hutchison Group Telecom Holdings Limited ("CKHGT", an indirect wholly-owned subsidiary of the Company) and its subsidiaries for the quarter ended 31 March 2021. Such filing has been published by CK Hutchison Group Telecom Finance S.A. (a wholly-owned subsidiary of CKHGT) on the website of the Luxembourg Stock Exchange and has also been made available at the website of CKHGT respectively on 6 May 2021.
Shareholders and potential investors of the Company are advised that the financial information of CKHGT and its subsidiaries referenced above is unaudited as of the date of this announcement and is included for reference only, they should not place undue reliance on such financial information and should exercise caution when dealing in the securities of the Company.
By Order of the Board
Edith Shih
Executive Director and Company Secretary
Hong Kong, 6 May 2021
1
As at the date of this announcement, the Directors of the Company are:
Executive Directors: | Non-executive Directors: |
Mr LI Tzar Kuoi, Victor (Chairman and | Mr CHOW Kun Chee, Roland |
Group Co-Managing Director) | Mrs CHOW WOO Mo Fong, Susan |
Mr FOK Kin Ning, Canning | Mr LEE Yeh Kwong, Charles |
(Group Co-Managing Director) | Mr LEUNG Siu Hon |
Mr Frank John SIXT (Group Finance Director | Mr George Colin MAGNUS |
and Deputy Managing Director) | |
Mr IP Tak Chuen, Edmond | Independent Non-executive Directors: |
(Deputy Managing Director) | Mr KWOK Tun-li, Stanley |
Mr KAM Hing Lam | Mr CHENG Hoi Chuen, Vincent |
(Deputy Managing Director) | The Hon Sir Michael David KADOORIE |
Mr LAI Kai Ming, Dominic | Ms LEE Wai Mun, Rose |
(Deputy Managing Director) | Mr William Elkin MOCATTA |
Ms Edith SHIH | (Alternate to The Hon Sir Michael |
David Kadoorie) | |
Mr Paul Joseph TIGHE | |
Mr WONG Kwai Lam | |
Dr WONG Yick-ming, Rosanna |
2
Trading update
for the quarter ended 31 March 2021
Disclaimer
The information, statements and opinions contained in this Presentation and subsequent discussion do not constitute an offer to sell or solicitation of any offer to subscribe for or purchase any securities or other financial instruments or any advice or recommendation in respect of such securities or other financial instruments.
Potential investors and shareholders of the Company (the "Potential Investors and Shareholders") are reminded that information contained in this Presentation and subsequent discussion comprises extracts of operational data and financial information of the Group for the three-month period ended 31 March 2021. The information included in this Presentation and subsequent discussion, which does not purport to be comprehensive nor render any form of financial or other advice, has been provided by the Group for general information purposes only and certain information has not been independently verified. No representations or warranties, expressed or implied, are made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, statements or opinions presented or contained in this Presentation and any subsequent discussions or any data which such information generates.
The performance data and the results of operations of the Group contained in this Presentation and subsequent discussion are historical in nature, and past performance is no guarantee of the future results of the Group. Any forward-looking statements and opinions contained in this Presentation and subsequent discussion are based on current plans, beliefs, expectations, estimates and projections at the date the statements are made, and therefore involve risks and uncertainties. There can be no assurance that any of the matters set out in such forward-looking statements are attainable, will actually occur or will be realised or are complete or accurate. Actual results may differ materially from those stated, implied and/or reflected in such forward-looking statements and opinions. The Group, the Directors, officers, employees and agents of the Group assume (a) no obligation to correct, update or supplement the forward-looking statements or opinions contained in this Presentation and subsequent discussion; and (b) no liability in the event that any of the forward-looking statements or opinions do not materialise or turn out to be incorrect.
Potential Investors and Shareholders should exercise caution when investing in or dealing in the securities of the Company.
2
CK Hutchison Group Telecom | YTD 2021 |
Active Customer (2)RevenueTotal Margin
41.0mn | €2.5bn | €1.7bn |
Y-o-Y 4% | Y-o-Y 2% | Y-o-Y 3% |
1.2% | €0.7bn | €5.9bn |
Y-o-Y flat | Y-o-Y 114% | Y-o-Y 19% |
(1) | Unless otherwise specified, the discussion of the Group's operating results in this presentation is on a Pre-IFRS 16 basis. | |
(2) | An active customer is a mobile customer that generated revenue from an outgoing call, incoming call or data/content service in the preceding three months. | |
(3) | Represents monthly average churn of contract customers. | |
(4) | Capex amount excludes licence costs. | |
(5) | Total bank and other debts are defined, for the purpose of "Net debt" calculation, as the total principal amount of bank and other debts. Net debt is defined as total bank and other debts less total cash and cash equivalents. | 3 |
CKHGT - 2021 Q1 vs 2020 Q1
Revenue | Total Margin |
€ m | €1,705m | ||||||
2,499 | 2% | 2,461 | |||||
€ m | |||||||
-3% | ( 2 ) | ||||||
1,763 | ( 38 ) | ||||||
( 18 ) | 1,705 | ||||||
2020 Q1 | 2021 Q1 | ||||||
Total Margin | 2020 Q1 | UK | Italy | Others | 2021 Q1 | ||
€ m | |||||||
Total Margin | Total Margin | ||||||
1,763 | 3% | 1,705 | |||||
Total Margin | +1% | ||||||
Change % | |||||||
(in local currencies) | |||||||
-5% | |||||||
UK | Italy | ||||||
2020 Q1 | 2021 Q1 | Total Margin % | 90% | 80% | |||
UK | Italy | Sweden | Denmark | |
Austria | Ireland | Hong Kong | Corporate & others | (1) Total margin % represents total margin as a % of total revenue excluding handset revenue. |
4 |
CKHGT - 2021 Q1 vs 2020 Q4
Revenue | Total Margin |
€ m
2,664 8% 2,461
2020 Q4 | 2021 Q1 | |
Total Margin | ||
€ m | 1,779 | 1,705 |
4% |
2020 Q4 | 2021 Q1 |
€1,705m | € m | 9 | |||
-4% | 1,779 | ||||
( 82 ) | ( 1 ) | 1,705 | |||
2020 Q4 | UK | Italy | Others | 2021 Q1 | |
Total Margin | Total Margin | ||||
Total Margin | -1% | ||||
Change % | |||||
(in local currencies) | |||||
-9% | |||||
UK | Italy | ||||
Total Margin % | 90% | 80% |
UK | Italy | Sweden | Denmark | (1) Total margin % represents total margin as a % of total revenue excluding handset revenue. |
Austria | Ireland | Hong Kong | Corporate & others | 5 |
Key Financials
£ m | 2021 Q1 | 2020 Q1 | % Variance | 2020 Q4 | % Variance |
Total Revenue | 581 | 570 | +2% | 636 | -9% |
Total Margin | 359 | 356 | +1% | 362 | -1% |
Total Margin (%) | 90% | 84% | +6%-pts | 87% | +3%-pts |
Capex | (152) | (98) | 55% | (369) | 59% |
Net ARPU (£) | 12.79 | 12.60 | +2% | 12.69 | +1% |
Net AMPU (£) | 11.26 | 10.91 | +3% | 11.12 | +1% |
Active customer ('000) | 9,307 | 9,952 | -6% | 9,706 | -4% |
Active contract customer ('000) | 7,569 | 7,243 | +5% | 7,515 | +1% |
Monthly average contract churn (%) | 1.3% | 1.4% | 1.6% | ||
CKHGT - UK
Results Highlights
- Volatile market landscape with uncertainties caused by the pandemic
- Encouragingly, total margin has been relatively stable year-on- year as well as quarter on quarter
- Total margin % remains strong through retention of higher value customers and contribution from higher margin revenue streams
- Capex increased against Q1 2020 as 3UK progresses to complete IT transformation and 5G rollout plans
- Lower active customer base mainly due to non-contract churn from MVNO competition, encouragingly, the proportion of active contract customers continues to increase (Q1 2021: 81%; Q1 2020: 73%; Q4 2020: 77%), providing stable margin contributions
- Contract churn % reduced in Q1 2021 through strong retention initiatives
6
CKHGT - Italy | ||||||||
Key Financials | Results Highlights | |||||||
• | ||||||||
€ m | 2021 Q1 | 2020 Q1 | % Variance | 2020 Q4 | % Variance | Aggressive competition from Iliad and MVNOs remained high | ||
Total Revenue | 1,042 | 1,110 | -6% | 1,143 | -9% | • | Revenue declined as a result but margin % remained at a healthy | |
level of approximately 80% throughout the periods | ||||||||
Total Margin | 789 | 827 | -5% | 871 | -9% | |||
Total Margin (%) | 80% | 80% | - | 81% | -1%-pts | • | Best network with fastest upload and download speed based on | |
independent survey, a solid platform for 5G rollout across 2020 | ||||||||
and 2021 | ||||||||
Capex | (428) | (136) | 215% | (448) | 4% | • | ||
Positive AMPU trend as a result of customer value management | ||||||||
initiatives and cost control | ||||||||
Net ARPU (€) | 11.01 | 10.83 | +2% | 11.05 | flat | • | ||
Net AMPU (€) | 9.41 | 9.11 | +3% | 9.40 | flat | Intense competition has seen active customer base decline, in | ||
particular for non-contract customers. The trend has relatively | ||||||||
Active customer ('000) | 19,357 | 20,652 | -6% | 19,638 | -1% | stabilised since Wind Tre launched second brand "Very" Mobile in | ||
Active contract customer ('000) | 9,608 | 9,474 | -1% | 9,697 | -1% | 2020 to compete in the prepaid segment | ||
Monthly average contract churn (%) | 1.4% | 1.3% | 1.5% | • | Continuous increase in proportion of active contract customers | |||
(Q1 2021: 50%; Q1 2020: 46%; Q4 2020: 49%) in a predominantly | ||||||||
prepaid market | ||||||||
• | Churn rates were relatively stable across the last twelve months | |||||||
compared to the peak 2.4% in 2H 2018 |
7
Telecommunications - CKH Networks
Jan 2021 | ||
Nov 2020 | Completion of | Q4 2021 |
Announced sale of | Sweden Tower | Target completion |
CKH Networks(1) to | Company disposal | Of UK Towers |
Cellnex | (proceeds received: €0.8bn) | disposal |
•
•
•
•
•
July 2020
Completion of Reorganisation
Dec 2020
Completion of
Austria, Denmark & Ireland Tower Company disposals (proceeds received: €2.2bn)
June/July 2021
Target completion
Of Italy Tower
Company disposal
•
(1) | • | General corporate purposes |
Tower companies holding interests in approximately 25k sites in Austria, Denmark, Ireland, Italy, Sweden and the United Kingdom. | ||
(2) | €9.5bn attributable to CKHGT. | |
(3) | New Cellnex shares equating to approximately 5% pro forma stake. | |
(4) | "All or nothing" renewal at the discretion of our European mobile operation in each jurisdiction (except for Austria, where the Master Services Agreement provides for an indefinite term subject to termination rights as agreed). | |
(5) | Estimated new sites rollout over the relevant period of the BTS program. | |
(6) | Estimates presented as if CKH Networks had been established on 1 January 2020 and by translating the UK, Sweden and Denmark operations into EUR equivalent for illustrative purposes. | 8 |
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CK Hutchison Holdings Limited published this content on 06 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2021 19:02:18 UTC.