中信 1616 集團有限公司 - Citic tel · 2018-11-21 · Annual Results Announcement for the year ended 31 December 2009 11 Feb 2010. 11 Feb 2010 . 2. ... Final dividend of HK

CITIC 1616 Holdings Limited 中信

1616

集團有限公司

(Stock Code: 1883)

Annual Results Announcementfor the year ended 31 December 2009

11 Feb 2010

Annual Results Announcementfor the year ended 31 December 2009

11 Feb 2010

CITIC 16162

Highlights for the Year Ended 31 December 2009Highlights for the Year Ended 31 December 2009

Profit attributable to equity holders of the Company increased by 11.9% toHK$ 371.5 million, as compared against last yearTurnover recorded a growth of 9.3% as compared against last yearRevenue generated from Voice services amounted to HK$1,726.9 million, representing a 7.0% increase as compared against last yearRevenue generated from SMS services rose 15.7% compared against last year to HK$286.0 millionRevenue generated from Mobile VAS rose 18.5% compared against last year to HK$112.0 millionRevenue generated from Data services rose 11.3% as compared to 2008Completion the acquisition of Macquarie’s international voice and data business by 31 July 2009Completion the acquisition of China Motion’s fixed network business by 31 July 2009At 31 December 2009, cash and cash equivalents was HK$686.2 million. No debt as at 31 December 2009Final dividend of HK 7.1 cents, together with interim dividend of HK 2.4 cents, the total dividend payment for the year of HK 9.5 cents, an increase of 13.1% as compared to 2008 and represent a dividend payout ratio of 50.5%

3

Financial ReviewFinancial Review

CITIC 16164

0

500

1,000

1,500

2,000

2,500

3,000

2005 2006 2007 2008 2009

TurnoverTurnover

1,364.21,486.1

9.3 %9.3 %

Year ended 31 December

980.0

TurnoverTurnover

HK $m

Turnover increased 9.3% to HK$2,716.6 million when compared with last year

2,486.4

2,716.6

CITIC 16165

Turnover of Four Major Business SegmentsTurnover of Four Major Business Segments

Voice Services Voice Services

0

300

600

900

1,200

1,500

1,800

2006 2007 2008 2009


1,141.6 1,162.5

HK$ m

7.0%7.0%

SMS ServicesSMS Services

0

50

100

150

200

250

300

2006 2007 2008 2009


117.1

186.8

HK$ m

Mobile VASMobile VAS

0

20

40

60

80

100

120

2006 2007 2008 2009


30.9

59.4

HK$ m

Data ServicesData Services

0

100

200

300

400

500

600

2006 2007 2008 2009


74.6 77.4

HK$ m

1,613.4247.1

94.5531.4

1,726.915.7%15.7%

18.5%18.5%

11.3%11.3%

286.0

112.0 591.7

CITIC 16166

Turnover BreakdownTurnover Breakdown

0

500

1,000

1,500

2,000

2,500

3,000

2005 2006 2007 2008 2009

Data ServicesSMS Services

Turnover breakdown Turnover breakdown by Businessby Business

HK$m

1,364.2

83.7%

5.5%2.2%

Voice Services Mobile VAS

8.6%

1,486.1

78.2%

5.2%4.0%

12.6%

9.3%9.3%


980.0

88.1%7.7%3.9%0.3%

2,486.4

64.9%

21.4%3.8%

9.9%

2,716.6

63.6%

21.8%

4.1%

10.5%

CITIC 16167

Profit GrowthProfit Growth

332.1371.5

201.5262.7

0

50

100

150

200

250

300

350

400

2006 2007 2008 2009

HK$m


Net profit attributable to equity holdersNet profit attributable to equity holders

11.9%11.9%

CITIC 16168

Sustain Solid MarginSustain Solid Margin

* 2007: It excluded interest income from IPO and included CPCNet’s whole year impact

21.6%

20.5% 20.5%

16.0%16.4% 16.5%

13.7%13.4%

13.7%

5%

10%

15%

20%

25%

2007* 2008 2009

EBITDA margin Operating margin Net margin

CITIC 16169

Strong Liquidity and Capital StructureStrong Liquidity and Capital Structure

HK$mOperating cash flow before changes in working capital & tax

Net cash generated from operating activities

Interest received

Capital expenditure for Broadway Centre

Capital expenditure - others

2005

183.9

348.1

0.3

-

47.6

2006

For the year ended 31 December

292.4

250.7

2.2

-

30.2

2007

335.7

262.1

61.3

-

62.4

HK$m

Cash and cash equivalents in consolidated Balance Sheet

Debt

Gearing ratio

At 31 December

43.4

- NIL -

Net Cash

31.9

- NIL -

Net Cash

780.6

- NIL -

Net Cash

2008

493.6

400.1

20.4

-

123.8

795.0

- NIL -

Net Cash

2009

686.2

- NIL -

Net Cash

554.1

402.3

6.8

157.0

107.1

CITIC 161610

Shareholding Structure at 31 December 2009Shareholding Structure at 31 December 2009

Government of SingaporeInvestment Corporation

Pte Ltd.4.5%

Others34.4%

Cornerstone Investors

8.5%

CITIC PACIFIC52.6%

11

Business ReviewBusiness Review

CITIC 161612

1,726.9

1,613.4

0

400

800

1,200

1,600

2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2008 2009

Voice ServicesVoice Services

0.199Rev per min (HK$)

HK$m


(mn mins)

0.170

International (LHS)

China Inbound (LHS)

Turnover (RHS)

China Outbound (LHS)

Major Business Segment – Voice ServicesMajor Business Segment – Voice Services

Handled over 10.1 bn mins voice traffic

20092009


Rest of World49.3%

China 50.7%

20200808 Voice Sales by customerVoice Sales by customer

13.9%

75.4%

10.7%

8,10315.1%

76.3%

8.6%

10,135

7.0 %7.0 %

25.1 %25.1 %

Rest of World56.1%

China 43.9%

CITIC 161613

Major Business Segment – Voice ServicesMajor Business Segment – Voice Services

Continue to expand the voice business with the China operatorsFurther develop the extent of 3G video connectionsExpand our sales coverage to the Middle East, Africa and Latin AmericaChallenge in the period - Price pressure of voice servicesEnter into retail and enterprises IDD business in Hong Kong and SingaporeRanked number 14th Top International Carrier of 2008 in Telegeography Report.Deploy new NGN switches on global fully redundant MPLS network.

CITIC 161614

0

500

1,000

1,500

2,000

2,500

3,000

2008 2009

247.1

286.0

0

50

100

150

200

250

300

20020088 SMS Sales by customerSMS Sales by customer

20020099

Handled over 1.56 bn SMS messages

Major Business Segment – SMS ServicesMajor Business Segment – SMS Services

SMS ServicesSMS Services

Rev per message (HK$)

HK$m

Turnover (RHS)

(mn messages)

15.7 %15.7 %

Rest of World57.1%

China42.9%



47.0%

17.9%

14.9%

20.2%

China Outbound (LHS) International (LHS) China Inbound (LHS)Hong Kong (LHS)

1,766.4

38.1%

20.0%

18.8%

23.1%

1,564.5

0.140 0.183

Rest of World60.3%

China39.7%

CITIC 161615

Major Business Segment – SMS ServicesMajor Business Segment – SMS Services

Further leadership in international SMS for all mobile carriers in China by providing 25 more destination countries SMS delivery.Signed SMS agreement with mobile telecom operators including France, Japan, USA, Hong Kong, Malaysia, Mongolia, Singapore, Luxembourg, Italy, UK and India. Complete support on China 3G Deployment on SMS including China Standard TDS-CDMA.Domestic HK IOSMS Feature enhancement of Alpha Numeric Sender ID. Pending for acceptance of HK MNOS.OFTA DNC (Do-Not-Call) Registry Compliance.Completed OC Inter-connections with other SMS Hubs in Europe, America, and Africa.Further enterprises SMS services in Japan, Taiwan,Vietnam, Singapore and USA/Canada.

CITIC 161616

0

30

60

90

120

150

2008 2009

Mobile VASMobile VAS

HK$m

18.5 %18.5 % 112.0

94.5

Turnover - Mobile VAS


Major Business Segment – Mobile VASMajor Business Segment – Mobile VAS

Mobile VAS

Engaged into GRQ (Global Roaming Quality) initiative recommend form GSMA (GSM Association)

Performed successful trial of E-Roam (Essential Roaming) with selected customers in Asia Pacific.

Signs its first CDMA/CDMA2000 customer in Indonesia providing both CDMA to GSM (C2G) inter-standard solution as well as CDMA to CDMA (C2C) roaming solution.

Repeat the VAS features such as PRS and SIN into the CDMA world.

CITIC 161617

Innovative products launched in 2009 :- VC2 – Asia s first IP-VPN HD-based managed video conferencing service; - M@ilCONNECT Plus - a dedicated secure and cost effective managed email hosting solution;- TrueCONNECT� Accelerator – The first Managed WAN Optimization Service in the Greater China; andNew products focused in coming years – security products and cloud computing services.

Major Business Segment – Data Business

0

100

200

300

400

500

600

700

800

2008 2009

VPN Other Data Business

423.2


386.4

HK$m

11.3 %11.3 %145.0

168.5531.4

591.7

Extend our MPLS VPN coverage and meet customers’ growing communications needs in Asia Pacific – extend POPs and partnerships in Vietnam, Malaysia and Sydney

Has taken over data services customers from previous Macquarie Telecom Pte. Ltd (Singapore) since August 2009 - strengthens our business foundations in Singapore, as well as enables us to expand into South Asia.

Secured various prestigious awards while pursuing service excellence including:1. “World Communication Award (WCA) 2009 - The Best Managed Service”2. Selected as one of the “TOP 20 Regional Global ICT Companies 2009” - MIS Asia Strategic 100.3. “2009 The Best SME Partners” - HK Economic Digest for the third consecutive year.4. “2009 Best Practices Award – Excellence in Growth” – from Frost & Sullivan5. “Customer Relationship Excellence (CRE) Awards” - Asia Pacific Customer Service Consortium (“APCSC”)

Major Business Segment – Data BusinessMajor Business Segment – Data Business

CITIC 161618

Acquisition of 20% CTM Stake

The acquisition of Companhia de Telecommunicacoes de Macau, S.A.R.L. (“CTM”) stake from CITIC Pacific reinforces CITIC 1616 as Asia’s leading telecom service provider

Existing business relationship between CITIC 1616 and CTM will be further strengthened with clear synergies in the following area:

Network Sharing

Position CITIC 1616 as preferred partner, enhance connectivity through CITIC 1616 hub

Sharing of CITIC 1616’s IRU cables

Enhanced international traffic business

Increase inbound and outbound roaming voice and SMS traffic connected via CITIC 1616 hub

Growth of wholesale IDD business in Macau

Business development

Secure CTM as the anchor customer on the back of new product and service launches

Timely adoption of new standards meeting end-user needs

Increased financial return

CTM is a cash rich company without liabilities

Pick up of CTM’s profit

Dividend from CTM enhances CITIC 1616’s cash position

CTM

CITIC 1616

Other telco operators /roaming users

Domestic users

Overseasusers

CITIC 161619

Reinforce CITIC 1616 as Asia’s Leading Telecom Service Provider

Stake Acquisition

20% interest in CTM, currently owned by CITIC Pacific

Other shareholders include: Macau Government (1%), Cable & Wireless (51%) and Portugal Telecom (28%)

Consideration Price

Total consideration of HK$1,400.4 million:

One-third, HK$467.0 million, payable in cash

Two-third, HK$933.4 million, payable in new shares at HK$2.3 per share

CITIC Pacific Shareholding

Upon completion of the transaction, CITIC Pacific’s shareholding in CITIC 1616 will increase from 52.6% to approx. 60.65%

Acquisition of 20% CTM Stake

20

Q&AQ&A

Documents

中信 1616 集團有限公司 - Citic tel · 2018-11-21 · Annual Results Announcement for the year ended 31 December 2009 11 Feb 2010. 11 Feb 2010 . 2. ... Final dividend of HK