PCCW reports steady growth across pay TV, with strong performance from Viu

Hong Kong’s PCCW has reported for the for the first half of year, its pay TV business saw small but steady growth with a 2% increase in revenue across the Local Telecommunications Services (TSS), reaching HK$8,159 million.

During the six months ended 30 June 2023, the company noted its content offering from pay TV operator Now TV was behind the slight spike, with live sporting events driving growth in customer subscriptions.

Total TSS revenue grew by 1% year-on-year to HK$11,685 million reflecting and total TSS EBITDA went up by 3% to HK$4,219 million with an improved margin of 36%.

PCCW also reported operating costs improved by 4% as a result of enhanced operating efficiencies across HKT, which lifted total EBITDA by 3% year-on-year to HK$6,009 million with margin improving from 36% to 37%.

Elsewhere, the media business recorded a 24% boost in revenue to HK$971 million, lead by the Asian-content skewed OTT service Viu. Revenue for the streaming rose by 30%, underpinned by expansion in monthly active users (“MAU”) and paid subscribers of 8% and 21%, respectively. With this enlarged revenue base, EBITDA for the OTT Business reached HK$165 million, up more than ninefold year-on-year.

While, Viu’s MAU grew by 8% year-on-year to reach 65.5 million with notable expansion in Indonesia and South Africa. Paid subscribers increased by 21% to 11.0 million within the six months, due to a deliberate paywall strategy and new distribution partnerships with partners such as Astro in Malaysia and Shoprite in South Africa.

France’s pay TV giant Canal+ bought a minority stake of 26.1% in Viu in June. Canal+ is to make initial investment of $200m in Viu and will make a staggered investment of $300m. Following the investment, Canal+ will also have an option to increase its stake in Viu to 51%.

Following a deal with parent-company PCCW, Canal+ is to make initial investment of $200m in Viu and will make a staggered investment of $300m. Following the investment, Canal+ will also have an option to increase its stake in Viu to 51%.

While, revenue of free TV & related business went up by 1%  to HK$390 million for the six months ended 30 June 2023. PCCW said this reflected stable advertising revenue and expanded artiste management.