Pacific Century    Last:0.47   -

Lovely Gem

Exoduspoint is a multi-strategy hedge fund manager - an investment strategy that aims to deliver attractive volatility adjusted returns. PCRD at some point in the past gave Exoduspoint some money to manage. From an absolute return perspective however, those returns are probably below what one might perceive the cost of equity of a listed company like PCRD should be - case in point, based on PCRD' s accounts it seems in 1H23 the performance on this investment was only 2.2%. Hence an investment in a fund managed by Exoduspoint is probably more appropriate for a institutional pension fund or a HNW individual than a listed company like PCRD. In PCRD' s 1H23 accounts it has indicated that it is redeeming 50% of its investment. Typically when you redeem from a hedge fund, contractually there are limits to how much you can redeem each quarter, hence staggering out the redemption process. Because of this, it may be the case that PCRD intends to also redeem the remaining 50% asap.

As per my earlier comments this is clearly a good move - PCRD is better off cashing in this investment, and given the complexity of its accounts it may be the case that the market is not according full (if any) value to this investment. As at 1H23, PCRD' s entire investment in the fund was worth S$64.4m i.e. S$0.024 a share i.e. 8.2% of PCRD' s current share price
 

 

Nicely stated ..... can u elaborate on " Exoduspoint" mentioned.

Thanks.  

Alignment      ( Date: 09-Aug-2023 00:48) Posted: Actually the results were good but it is difficult to see this purely by looking at the consolidated PCRD accounts - one needs to dig into the individual HKT and PCCW accounts to understand what is going on. Within the HKT/PCCW/PCRD chain there are only two operating companies - HKT (by far the largest) and PCCW' s media business. PCCW and PCRD are otherwise effectively holding companies. HKT' s results were good - you can see this from their standalone accounts in Hong Kong, and PCCW' s media business did great as well with its value shown by the price Canal+ paid for a minority stake in June. As a result both HKT and PCCW paid increased dividends in their results, which had PCRD chosen to pass through to shareholders as had happened in the past then that would have resulted in a very large dividend. This time round however PCRD management chose to use the dividends to pay down debt instead, which is understandable - PCRD' s debt is HIBOR linked so their current interest cost is circa 7-8%. Whilst some shareholders may have preferred to receive the dividends, it may be better to pay down debt now and pay out a higher dividend later when HIBOR is lower again. Also of note in these results is that PCRD is redeeming its investment in Exoduspoint - this will further clean up the PCRD structure after the earlier HKT in specie distribution and may of course lead to further special dividends should PCRD choose to pay out the proceeds once the redemption has happened.

 

Actually the results were good but it is difficult to see this purely by looking at the consolidated PCRD accounts - one needs to dig into the individual HKT and PCCW accounts to understand what is going on. Within the HKT/PCCW/PCRD chain there are only two operating companies - HKT (by far the largest) and PCCW' s media business. PCCW and PCRD are otherwise effectively holding companies. HKT' s results were good - you can see this from their standalone accounts in Hong Kong, and PCCW' s media business did great as well with its value shown by the price Canal+ paid for a minority stake in June. As a result both HKT and PCCW paid increased dividends in their results, which had PCRD chosen to pass through to shareholders as had happened in the past then that would have resulted in a very large dividend. This time round however PCRD management chose to use the dividends to pay down debt instead, which is understandable - PCRD' s debt is HIBOR linked so their current interest cost is circa 7-8%. Whilst some shareholders may have preferred to receive the dividends, it may be better to pay down debt now and pay out a higher dividend later when HIBOR is lower again.

Also of note in these results is that PCRD is redeeming its investment in Exoduspoint - this will further clean up the PCRD structure after the earlier HKT in specie distribution and may of course lead to further special dividends should PCRD choose to pay out the proceeds once the redemption has happened.
 

 

I went thru cheong kongs most recent results on the SGX. Think they were required to report becuase got some debt listed here. Skim thru it but didn' t find the reason why their telco sector under so much pressure. iirc almost no profit compared to the previous reporting season. Anyone got any idea? Maybe reported in HK business media?

 

Wow .... dropped so much..... result so bad / no more dividend distribution?

Sigh .... will accumulate when price is right .... time for me to Kio durians.

Vested .... pls dyodd.

 

ok had a good run last few years, time to consolidate

 

Creative accounting. Core earnings all improved actually. But losses from other sources from PCCW. Have no idea where it came from. Accounting treatment? Any expert accountants here?

 

Taking back what it has given to shareholders. Might hit 20ish soon. 

 

PCRD is rather quiet for the last 2 months. Aee there any interesting developments coming up ?

 

Musical chairs have stopped?

 

Sold off all holding. Nothing much here already

 

PCRD giving a final dividend of 0.9c, short of expectation.  Probably we are expecting too much, after receiving an equivalent of 8.3c interim dividend late last year!

fruitfulness      ( Date: 25-Feb-2023 11:38) Posted: I think a final dividend of 2.4c to 3.0c per share for the financial year-end dividend would be good! Let' s see what will be announced early next wk! lsk007      ( Date: 24-Feb-2023 18:18) Posted: Seems like 3 cents dividend is realistic. Congrats to all!

 

0.009 big disappointment

 

I think a final dividend of 2.4c to 3.0c per share for the financial year-end dividend would be good! Let' s see what will be announced early next wk!

lsk007      ( Date: 24-Feb-2023 18:18) Posted: Seems like 3 cents dividend is realistic. Congrats to all!

 

That would be nice 😃

So fast another year

lsk007      ( Date: 24-Feb-2023 18:18) Posted: Seems like 3 cents dividend is realistic. Congrats to all!

 

Seems like 3 cents dividend is realistic. Congrats to all!

 

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2022

The directors (&ldquo Directors&rdquo ) of PCCW Limited (&ldquo PCCW&rdquo or the &ldquo Company&rdquo ) hereby announce the audited consolidated results of the Company and its subsidiaries (collectively the &ldquo Group&rdquo ) for the year ended 31 December 2022. &bull Revenue increased 2% to HK$36,065 million &bull HKT total revenue was HK$34,125 million excluding Mobile product sales, HKT total revenue increased by 2% to HK$30,501 million &bull OTT Business revenue up 36% to HK$2,012 million &bull Free TV & Related Business revenue up 14% to HK$910 million &bull EBITDA increased 6% to HK$12,388 million &bull HKT EBITDA up 3% to HK$13,064 million year on year spurred by improved cost efficiencies &bull OTT Business achieved first full year of positive EBITDA of HK$178 million &bull Free TV & Related Business EBITDA up 3% to HK$97 million &bull Above results exclude the part of the Solutions Business injected into Lenovo PCCW Solutions Limited, a strategic partnership with Lenovo Group Limited (which is referred to as the ITS Business6 ) such business was reclassified as discontinued operations &bull Consolidated profit attributable to equity holders of the Company for the year was HK$158 million, which included a gain on the deconsolidation of the ITS Business following the completion of the strategic partnership formation &bull Final dividend of 28.48 HK cents per ordinary share resulting in full-year dividend of 38.04 HK cents per ordinary share

SmallSmall      ( Date: 24-Feb-2023 09:17) Posted: PCCW results today after HK market closed.

 

PCCW results today after HK market closed.

 

The payout/distribution of HKT shares came from Pacific Century itself. Pacent still owns a indirect a big chunk of HKT shares via PCCW. 
Nothing has changed in its indirect holdings of HKT via PCCW.

Neutral_Guy      ( Date: 23-Feb-2023 19:33) Posted: I think no more HKT shares, last time already divest and payout right?

 

I think no more HKT shares, last time already divest and payout right?