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Communications

PCCW Ltd.

  • 4.57 HKD
  • -0.03
  • -0.65%
  • Hong Kong
    Jul 17, 2019
  • Ticker
    HKG(8)
  • Prev. close
    4.60
  • Market cap (HKD)
    35,510.33M
  • Market cap (USD)
    4,542.38M
  • Shares
    7,719.63M

Company Background

PCCW is a major telecommunications company in Hong Kong. It has a workforce of more than 23,000. The company also works in real estate development and investment, media and information technology solutions. Its does business in East Asia, Europe, the U.S. and the Middle East. PCCW has a majority stake in HKT, Hong Kong's largest cellphone carrier. HKT operates telecom services including broadband, equipment sales, outsourcing and consulting businesses as a core unit of PCCW.

PCCW has also been strengthening its presence in broadcasting. It owns now TV, Hong Kong's leading subscription broadcaster. The company plans to expand its video-on-demand business in emerging markets through U.S.-based subsidiary Vuclip. PCCW also received a free-to-air broadcasting license from the Hong Kong government in April 2015. Its subsidiary Hong Kong Television Entertainment will launch a 24-hour Cantonese channel in 2016 and an English-language channel by 2017. PCCW will invest 2.7 billion Hong Kong dollars ($348 million) in the new channels over their first 10 years.

Chairman Richard Li Tzar-kai is the second son of Li Ka-shing, one of Asia's richest men. Li Ka-shing leads Hong Kong conglomerate CK Hutchison Holdings. PCCW is around 25% owned by Singapore-based investment company Pacific Century Regional Developments, which is also led by Richard Li Tzar-kai.

Business Summary

PCCW Ltd. is an investment holding company, which engages in the provision of telecommunications and related services. It operates through the following segments: HKT, Media Business, Solutions Business, Pacific Century Premium Development Limited (PCPD), and Other Businesses. The HKT segment includes local telephony, local data and broadband, international telecommunications, mobile, and other telecommunications businesses such as customer premises equipment sales, outsourcing, consulting, and contact centers. The Media Business segment offers interactive pay-television services, internet portal digital media entertainment platform, and directories operations in Hong Kong, mainland China and other parts of the world. The Solutions Business segment provides information and communications technologies services and solutions in Hong Kong, and other parts of Greater China and Asia. The PCPD segment covers the group's development and management of premium-grade property and infrastructure projects as well as premium-grade property investments. The Other Businesses segment comprises of corporate support functions, and the group's wireless broadband business in the United Kingdom. The company was founded on April 24, 1979 and is headquartered in Hong Kong.

Financial Highlights

Dec 2018 HKDUSD
Revenue38,850M4,956.90M
Gross Profit11,235M1,433.48M
Operating income5,198M663.21M
Income before tax4,184M533.84M
Net income897M114.44M
EBITDA12,171M1,552.90M
Diluted EPS0.110.01
Dividends Per Share0.310.03
Total Assets94,227M12,035.09M
Total liabilities74,618M9,530.54M
Total equity17,095M2,183.45M
Operating cash flow5,331M680.18M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 33,277M 39,314M 38,384M 36,832M 38,850M
Gross Profit 11,845M 14,311M 13,959M 11,702M 11,235M
Operating income 4,037M 5,835M 5,527M 6,286M 5,198M
Income before tax 5,474M 4,440M 4,227M 4,145M 4,184M
Net income 3,310M 2,295M 2,051M 895M 897M
EBITDA 10,340M 11,873M 12,209M 13,072M 12,171M
Diluted EPS 0.45 0.30 0.26 0.26 0.11
Dividends Per Share 0.20 0.25 0.28 0.29 0.31
Total Assets 73,039M 74,758M 79,584M 92,524M 94,227M
Total liabilities 60,670M 61,416M 64,808M 70,632M 74,618M
Total equity 10,157M 11,024M 12,026M 19,190M 17,095M
Operating cash flow 9,446M 10,460M 8,963M 9,207M 5,331M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 4,291.21M 5,071.09M 4,944.82M 4,726.40M 4,956.90M
Gross Profit 1,527.46M 1,845.96M 1,798.27M 1,501.63M 1,433.48M
Operating income 520.58M 752.65M 712.01M 806.64M 663.21M
Income before tax 705.89M 572.71M 544.54M 531.90M 533.84M
Net income 426.83M 296.03M 264.22M 114.84M 114.44M
EBITDA 1,333.38M 1,531.49M 1,572.82M 1,677.44M 1,552.90M
Diluted EPS 0.05 0.03 0.03 0.03 0.01
Dividends Per Share 0.02 0.03 0.03 0.03 0.03
Total Assets 9,418.49M 9,646.00M 10,264.73M 11,835.79M 12,035.09M
Total liabilities 7,823.49M 7,924.49M 8,358.92M 9,035.34M 9,530.54M
Total equity 1,309.76M 1,422.42M 1,551.11M 2,454.81M 2,183.45M
Operating cash flow 1,218.10M 1,349.22M 1,154.66M 1,181.47M 680.18M

Valuation Measures

Dec 2018
PER38.77
ROA0.96%
ROE4.94%
Operating margin13.37%
Profit margin2.30%

Key executives

  • Group Managing Director & Executive Director: Srinivas Bangalore Gangaiah
  • Group Chief Financial Officer & Executive Director: Hon Hing Hui
  • Chief Technology Officer: Paul Berriman
  • Managing Director: Janice Lee
  • Head-Investor Relations: Marco Wong

Shareholders

  • Pacific Century Regional Developments Ltd. (22.7%)
  • China State-Owned Assets Supervision & Admn Commission (18.4%)
  • LI TZAR KAI RICHARD (6.2%)
  • BlackRock Fund Advisors (1.9%)
  • The Vanguard Group, Inc. (1.5%)
  • Norges Bank Investment Management (0.8%)
  • Prusik Investment Management LLP (0.7%)
  • Eastspring Investments (Hong Kong) Ltd. (0.6%)
  • BlackRock Advisors (UK) Ltd. (0.6%)
  • Dimensional Fund Advisors LP (0.4%)

Contact Details

  • Website:http://www.pccw.com
  • Address: 41st Floor, PCCW Tower, TaiKoo Place, 979 King's Road, Hong Kong, Hong Kong
  • Phone: +852.2888.2888

Related Companies

  • PCCW Global (Germany) GmbH
  • PCCW Teleservices Operations (Hong Kong) Ltd.
  • Sino Pearl Ltd.
  • Seamless Industries Ltd.
  • Mandarin Communications Ltd.
  • PCCW Enterprises Ltd.
  • PCCW Global Europe Cooperatieve UA
  • PCCW Customer Management Technology & Services (Guangzhou)
  • PCPD Services Ltd.
  • PCCW Global Pte Ltd.
  • PCCW Finance Ltd.
  • PCCW Cascade (Thailand) Ltd.
  • PCCW IMS Ltd.
  • PCCW (Beijing) Ltd.
  • PCCW Business eSolutions Ltd.
  • Ripley Investments Ltd.
  • PCCW Capital No. 5 Ltd.
  • Unihub China Information Technology Co., Ltd.
  • HKT Ltd.
  • PCCW Capital No. 4 Ltd.
  • UK Broadband Ltd.
  • Pccw Media Group
  • Cas Holding No 1 Ltd.
  • HKT Trust & HKT Ltd.
  • PCCW-HKT Partners Ltd.
  • PCCW Global (Japan) K.K.
  • PCCW Ltd. /CDMA Business/
  • CSL Mobile Ltd.
  • Hongkong Telephone
  • PCCW Solutions Ltd.

Competitors

  • Amazon.com, Inc.
  • Alphabet Inc. Class A
  • Netflix, Inc.
  • Walt Disney Company
  • Orange SA
  • 21Vianet Group, Inc. Sponsored ADR Class A
  • Network18 Media & Investments Ltd.
  • Taiwan Mobile Co., Ltd.
  • TV18 Broadcast Limited
Last Updated on 17 Jul, 2019

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