PCCW's ad revenue in 2021 doubles, new group MD named

PCCW recorded a net profit of HK$1.04 billion in 2021 after a loss of HK$1.02 billion from the prior year, as many of its businesses enjoyed significant increase, including its free TV division and related business such as artiste management, event business, and increased advertising revenue. The group said in its annual result announcement for the year ended on 31 December 2021 that its robust performance across its core businesses of telecommunications, media, and IT solutions services against the backdrop of a stabilising environment in Hong Kong and continued expansion of the Group’s Media and Solutions Business regionally.

PCCW's free TV and related business revenue grew by 152% to HK$800 million last year with advertising revenue more than doubling to HK$615 million.

The company said the positive response was due to its relevant and appealing content, including scripted dramas such as Ink At Tai Ping and reality shows led by the King Maker series.

Additionally, the company dedicated a paragraph to MIRROR. It said, "Riding on the success of MIRROR as well as other up and coming artistes, our artiste management and event business flourished, with our artistes promoted 13 of the top 50 advertisers in Q3 2021. As a result, revenue from artiste management and event business increased almost tenfold compared to the previous year.

MIRROR was more popular than ERROR as the 12-member band starred in many ads. Advertisers included HSBC, Walt Disney, Samsung, foodpanda Hong Kong, McDonald's Hong Kong, LG Electronics, Dettol, Deliveroo Hong Kong, Octopus, Shiseido, FWD, Manulife and Sun Life Hong Kong. However, ERROR only featured in the campaigns of HSBC, Deliveroo Hong Kong, Octopus, FWD.

Looking ahead, to sustain the growth momentum, PCCW said its free TV and related business will continue developing quality content and find further ways to promote existing artistes and groom new talent, such as the recently debuted girl group COLLAR. PCCW said that 2021 was a landmark year for ViuTV. The company built on its prior continuous investments in the production of relevant and content. This culminated in the success of boyband MIRROR during 2021, benefiting other businesses in the group too.

The OTT business recorded another year of growth, with a 25% increase in revenue to HK$1,480 million last year. This was driven primarily by growth in its video streaming service Viu, which achieved a 37% revenue growth to HK$1,111 million. Viu’s viewer base continued to expand during the year experiencing a 30% growth in MAUs to 58.6 million.

While Thailand and Indonesia remained their largest markets, significant growth was experienced in the Philippines which is also becoming a sizeable contributor.

The group’s revenue from continuing operations increased by 7% to HK$38,654 million and EBITDA from continuing operations by 6% to HK$12,309 million. Its media business, including over-the-top (OTT) and Free TV & related business, continued to show favourable prospects, enlarging their revenue by 25% and 152% respectively. PCCW said the success of the OTT business was the result of its high-quality content, including its Viu Original titles, which have spurred further growth in its monthly active users (MAUs) and paid subscribers.

At the same time, PCCW has also announced a management reshuffle. Srinivas Bangalore Gangaiah will be retiring from his positions as group managing director and executive director of PCCW. Gangaiah has been in the role for seven years and according to Richard Li, chairman of PCCW, he has steered the group's robust development. Li said, “On behalf of the board, I would like to express our gratitude for his invaluable contributions in building a solid foundation for the company, preparing it for further growth in the years to come.”

Taking on the role of acting group managing director will be Susanna Hui Hon Hing, the group's current chief financial officer and an executive director of the company. Concurrently with her appointment as acting group managing director, Hui will continue in her role as group CFO and executive director of the company. She is currently entitled to a total annual salary package (including basic salary, housing benefit, benefits in kind and retirement scheme contribution but excluding any discretionary bonus and share-based compensation which are not determined currently) of approximately HK$16.35 million, which is determined with reference to her job complexity, workload and responsibilities with the Group and its remuneration policies.

Hui has been the group CFO of the Company since April 2007 and holds directorships in various subsidiaries of the company. Hui is also the group MD of HKT and HKT management limited. In the past 23 years, she has served the PCCW Group in various capacities, including as director of group finance of the PCCW Group, and the director of finance of the PCCW Group with responsibility for the telecommunications services sector and regulatory accounting. Hui was also the group chief financial officer of HKT Limited from November 2011 to August 2018. She was also the chief financial officer of Pacific Century Premium Developments from July 2009 to November 2011 and an executive director of PCPD from May 2018 to December 2021.

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