Tourism consumption is showing a growth trend, with a year-on-year jump of 166%! Hong Kong Telecom's total revenue from roaming exceeds pre pandemic roaming | revenue | total revenue
In the first half of 2023, with the implementation of a series of measures by the Hong Kong government and the reopening of borders, Hong Kong's consumption and tourism related expenditures showed an upward trend, and the dawn of economic recovery in Hong Kong was beginning to emerge.
As one of the largest local telecommunications operators in Hong Kong, Hong Kong Telecom announced steady growth in its mid year performance on August 2, with continuous growth in consumer spending and corporate investment, especially the rapid growth of mobile communication roaming business. This indirectly reflects the recovery of tourism consumption and economic and trade in Hong Kong after the reopening of the border.
Data shows that due to the comprehensive reopening of the Hong Kong border in the first quarter of this year, tourism has gradually recovered, and the demand for mobile communication roaming services has rebounded, especially with an increase in outbound roaming. As of June 30, 2023, the company's roaming revenue has recovered and more post paid customers have adopted 5G services. The service revenue growth of its mobile communication business has accelerated, with a year-on-year increase of 5% in the first half of the year to HKD 3.815 billion.
It is worth noting that the number of Hong Kong telecommunications roaming users and personal outbound roaming revenue exceeded pre pandemic levels in June 2023, and outbound roaming revenue rebounded to 80% of pre pandemic levels in June 2023. Despite the low base effect, the company's total roaming revenue in the first half of 2023 still jumped by 166% year-on-year.
Other business growth
The company's 5G service passenger volume continues to increase, although the growth rate has slowed down, the customer base has approached 1.2 million as of June 30, 2023, accounting for 35% of the total number of post paid customers. Although mobile phone sales have been relatively weak, with total revenue still increasing by 1% to HKD 4.968 billion, the company expects a rebound in mobile phone sales in the second half of the year as the economic recovery momentum strengthens and new phones are gradually launched.
Enterprises in Hong Kong and mainland China are accelerating infrastructure and system upgrades in anticipation of sustained economic recovery, and there is a strong demand for their services. Therefore, in the first half of the year, local data revenue recorded a growth rate of 10%. Due to the continuous demand for high-speed and reliable broadband solutions from individuals, families, and businesses in the new normal, more customers are adopting value-added services such as fiber optic transmission and home Wi Fi solutions, driving a year-on-year increase of 2% in broadband revenue.
In addition, Hong Kong Telecom's pay TV business performed steadily in the first half of the year, due to the growth of NowTV business, especially the eye-catching live broadcast of sports events, which led to a steady increase in customer orders, especially in the Chinese food and tourism industry.
Based on a comprehensive benchmark, Hong Kong Telecom's total revenue increased by 3% in the first half of this year to HKD 15.247 billion, while total revenue increased by 2% to HKD 16.4 billion.
Due to the improvement of the company's operational efficiency, operating costs were saved by 4%, driving the total EBITDA of the company to increase by 3% year-on-year to HKD 6.009 billion, and the marginal profit increased from 36% in the same period last year to 37%.