Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- HKBN Ltd (FRA:2HK, Financial) reported a 5% year-over-year growth in EBITDA, outperforming many market players.
- The enterprise solutions segment saw a 4% revenue growth, with the system integration ICT business growing by 10%.
- The residential solutions segment introduced the GigaFast campaign, resulting in an 80% uptake in 2GB customers.
- The company has successfully launched the InnoTech Ecosystem Alliance, partnering with 17 vendors to expand its international data services.
- HKBN Ltd (FRA:2HK) improved its net leverage ratio by more than 0.5% over the past year, enhancing financial stability.
Negative Points
- The residential business only achieved a modest 1% year-over-year growth in direct subscriptions.
- The company scaled down less profitable reselling businesses, resulting in a slight decline in overall business aggregate.
- Despite growth in certain areas, the overall revenue growth remains relatively flat.
- The company faces competitive pressure in pricing execution, particularly in the residential segment.
- There is a potential risk of geopolitical issues impacting enterprise customers involved in exports, although currently deemed minimal.
Q & A Highlights
Q: To what extent do you think the current trade will affect HKBN's business?
A: William Yeung, Co-Owner & Executive Vice-chairman & Group CEO, stated that they do not foresee any significant impacts on their business due to current trade conditions. He emphasized the company's robust, utility-like, recession-resilient nature with secured recurrent income.
Q: Has China Mobile's acquisition of TPG stake impacted your strategy, and have you had any discussions with China Mobile?
A: William Yeung explained that the transaction between China Mobile and TPG is not yet complete, and thus, they have not altered their strategy. He assured that HKBN continues to focus on growing EBITDA, improving cash positions, and leveraging operations, maintaining business as usual.
Q: Are there any concerns that keep you awake at night regarding HKBN's future?
A: William Yeung invited comments or concerns from participants but reiterated confidence in HKBN's strategic direction and operational resilience, indicating no significant worries about the company's future.
Q: What are the key priorities for HKBN moving forward?
A: Derek Yue, Co-Owner & CFO, highlighted the focus on generating strong cash flow, deleveraging, and continuing EBITDA growth. He emphasized maintaining high cash conversion rates and improving financial metrics as ongoing priorities.
Q: How is HKBN positioned in terms of market competition and growth potential?
A: William Yeung discussed HKBN's competitive advantage, noting their strong market position with scalable operations and robust infrastructure. He emphasized the company's ability to compete effectively against larger incumbents and smaller competitors, ensuring sustainable growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
