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Communications

PCCW Ltd.

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 2021 HKDUSD
Revenue38,654M4,972.95M
Gross Profit9,777M1,257.84M
Operating income4,674M601.32M
Income before tax3,339M429.57M
Net income386M49.66M
EBITDA12,282M1,580.11M
Diluted EPS0.010.00
Dividends Per Share0.370.04
Total Assets94,223M12,085.60M
Total liabilities84,627M10,854.76M
Total equity8,477M1,087.31M
Operating cash flow9,024M1,160.96M
Currency in HKDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 36,832M 38,850M 37,521M 35,984M 38,654M
Gross Profit 11,702M 11,235M 11,409M 9,396M 9,777M
Operating income 6,286M 5,198M 4,790M 4,333M 4,674M
Income before tax 4,145M 4,184M 3,778M 2,108M 3,339M
Net income 895M 897M 681M -533M 386M
EBITDA 13,072M 12,171M 11,995M 11,732M 12,282M
Diluted EPS 0.26 0.11 0.08 -0.13 0.01
Dividends Per Share 0.29 0.31 0.32 0.32 0.37
Total Assets 92,524M 94,227M 98,895M 97,839M 94,223M
Total liabilities 70,632M 74,618M 80,923M 84,285M 84,627M
Total equity 19,190M 17,095M 15,538M 9,933M 8,477M
Operating cash flow 9,207M 5,331M 9,811M 11,358M 9,024M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 4,726.40M 4,956.90M 4,788.77M 4,639.50M 4,972.95M
Gross Profit 1,501.63M 1,433.48M 1,456.12M 1,211.44M 1,257.84M
Operating income 806.64M 663.21M 611.34M 558.66M 601.32M
Income before tax 531.90M 533.84M 482.18M 271.78M 429.57M
Net income 114.84M 114.44M 86.91M -68.72M 49.66M
EBITDA 1,677.44M 1,552.90M 1,530.91M 1,512.63M 1,580.11M
Diluted EPS 0.03 0.01 0.01 -0.01 0.00
Dividends Per Share 0.03 0.03 0.04 0.04 0.04
Total Assets 11,835.79M 12,035.09M 12,692.18M 12,618.11M 12,085.60M
Total liabilities 9,035.34M 9,530.54M 10,385.66M 10,870.08M 10,854.76M
Total equity 2,454.81M 2,183.45M 1,994.14M 1,281.04M 1,087.31M
Operating cash flow 1,181.47M 680.18M 1,252.16M 1,464.41M 1,160.96M

Valuation Measures

Dec 2021
PER204.66
ROA0.40%
ROE4.19%
Operating margin12.09%
Profit margin0.99%

Key executives

  • Group MD, Group CFO & Executive Director: Hon Hing Hui
  • Managing Director: Janice Lee
  • Head-Investor Relations: Marco Wong
  • Group Chief Human Resources Officer: Wai Ling Shum
  • Secretary & Group General Counsel: Hok Chee Cheung

Shareholders

  • Pacific Century Regional Developments Ltd. (22.6%)
  • China State-Owned Assets Supervision & Admn Commission (18.4%)
  • LI TZAR KAI (8.2%)
  • The Vanguard Group, Inc. (1.3%)
  • Norges Bank Investment Management (0.8%)
  • BlackRock Fund Advisors (0.8%)
  • Dimensional Fund Advisors LP (0.6%)
  • BlackRock Japan Co., Ltd. (0.3%)
  • JPMorgan Investment Management, Inc. (0.2%)
  • BlackRock Advisors (UK) Ltd. (0.2%)

Contact Details

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

Related Companies

  • PCCW Wealth Ltd.
  • PCCW Solutions Holdings Ltd.
  • Pccw Ltd. /It Business/
  • Cyberworks Ventures Ltd.
  • Nihon Harmony Resorts KK
  • Talent Master Investments Ltd.
  • PCCW Solutions Singapore Pte Ltd..
  • Pacific Century Cyberworks Solutions (Macau) Ltd.
  • PCCW Solutions (Guangzhou) Ltd.
  • PCCW Productions Ltd.
  • PCCW Content Ltd.
  • Great Epoch Holdings Ltd.
  • PCCW Global (Germany) GmbH
  • PCCW Vuclip (Singapore) Pte Ltd.
  • PCCW Teleservices Operations (Hong Kong) Ltd.
  • Vuclip (India) Pvt Ltd.
  • Vuclip Digital Media Pvt Ltd.
  • Sino Pearl Ltd.
  • Seamless Industries Ltd.
  • Mandarin Communications Ltd.
  • PCCW Enterprises Ltd.
  • PCCW Global Europe Cooperatieve UA
  • 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.

Competitors

  • China Unicom (Hong Kong) Limited
  • VNET Group, Inc. Sponsored ADR
  • Chunghwa Telecom Co., Ltd
  • BEC World Public Co., Ltd.
Last Updated on 30 Sep, 2022

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