Acquisitions boost enterprise segment for HKBN as revenue jumps 103%
HKBN has seen revenues in its enterprise division increase 103% year on year, according to its latest financial results.
The performance has been attributed to the strong performance of two businesses HKBN acquired in 2019.
It acquired WTT Holding Corp that April, which was Hong Kong’s second largest fixed line telecoms operator before the deal, and ICT solutions provider Jardine OneSolution Holdings Limited (JOS), plus subsidiaries, the following December.
These allowed HKBN to extend integrated telecom and technology services to a larger customer base. Enterprise customers now total 105,000 and the enterprise ARPU improved from HK$1,742 to $2,948.
The telco said in a statement: “Looking forward, Enterprise Solutions will maximise the operational and financial synergies benefits from the enlarged group, and fully utilise the network capacity and back-end support function of WTT and JOS in transforming HKBN to an integrated telecom and technology solutions powerhouse.”
Three further acquisitions have been completed since CVC Capital Partners took HKBN private in May 2012, in a HK$4.9 billion transaction.
“HKBN saw proven success integrating five add-on acquisitions since management buyout in 2012, especially in driving market leading growth with interest alignment through our CoOwnership plans,” said co-owner and executive VC William Yeung, and co-owner and group CEO NiQ Lai.
“With the collective efforts of our over 5,900 talents led by around 990 CoOwners to deliver disruptive innovations for stakeholders, and by transforming our enterprise customers into our business partners, we are in an enviable position to grow in these tough times,’’ Yeung added.
Elsewhere in the results, EBITDA increased 47% after adoption of the Hong Kong Financial Reporting Standard (HKFSA), without which EBITDA would have stood at 32%.
Revenue increased year on year at a rate of 85% and adjusted free cash flow reached 49%.
Substantial gains were also reported in residential solutions where – excluding the impact of a one-month waiver of customer fees, extended to relieve the financial stress of Covid-19 – HKBN Residential Solutions’ revenue increased by 0.4% year-on-year to reach HK$2,483 million.
In January, HKBN appointed Sam Tan (pictured) as its new chief innovation officer (CIO).