PCCW reports solid financial results for 2015

PCCW (SEHK: 0008) - HONG KONG, February 26, 2016 - The directors ("Directors") of PCCW Limited ("PCCW" or the "Company") are pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively the "Group") for the year ended December 31, 2015. Some key figures are as follows:

• Core revenue increased by 19% to HK$39,149 million; consolidated revenue (including PCPD) increased by 18% to HK$39,314 million
• Core EBITDA increased by 16% to HK$12,139 million; consolidated EBITDA (including PCPD) increased by 15% to HK$11,878 million
• Core profit attributable to equity holders of the Company increased by 23% to HK$2,370 million; consolidated profit attributable to equity holders of the Company from continuing operations (excluding PCPD's one-time gain on disposal in 2014) increased by 36% to HK$2,117 million
• Final dividend of 17.04 HK cents per ordinary share

PCCW registered a solid result for the year ended December 31, 2015 demonstrating resilient operational and financial performance while continuing to reinvest and drive future growth.

Core revenue for the year ended December 31, 2015 increased by 19% to HK$39,149 million. Core EBITDA increased by 16% to HK$12,139 million. These results in particular reflect the successful integration of CSL Holdings Limited and the accompanying financial benefits.

Including PCPD, consolidated revenue for the year ended December 31, 2015 increased by 18% to HK$39,314 million and consolidated EBITDA increased by 15% to HK$11,878 million.

Core profit attributable to equity holders of the Company increased by 23% to HK$2,370 million in 2015 from HK$1,931 million in 2014. Excluding the one-time gain on disposal of the entire interest in Pacific Century Place, Beijing by PCPD in 2014, the consolidated profit attributable to equity holders of the Company from continuing operations increased by 36% to HK$2,117 million in 2015.

Consolidated profit attributable to equity holders of the Company was HK$2,295 million, and basic earnings per share were 30.58 HK cents.

The board of Directors (the "Board") has recommended the payment of a final dividend of 17.04 HK cents per ordinary share for the year ended December 31, 2015.

Mr. BG Srinivas, Group Managing Director of PCCW, said that in the coming year the Group would continue to embrace the changes brought by the increasing digital lifestyle of consumers and digital transformation of enterprises.

"There will be increasing demand for content, connectivity, IT and cloud capabilities to drive business efficiencies and enhance customer experience, such as real time big data analytics which is made possible with the advance of Internet of Things ("IoT"). As a customer-centric organization, the Group will continue to build our offerings and innovations to meet the future needs of our customers in the medium and longer term, thereby also benefiting from this trend. In this regard, our media, IT solutions and telecommunications businesses can collectively play a significant role and contribute to the overall growth of the Group," he said.

"While maintaining our leadership in the Hong Kong pay-TV market, PCCW Media will be actively rolling out the Viu over-the-top ("OTT") video service internationally. Following the launch in Hong Kong, Singapore and Malaysia, Viu will have expanded presence in Indonesia and India in the first quarter. The service will capture the growing digital advertising and online subscription market. It is our goal to become the preeminent multi-screen video entertainment hub for Asian content in the region, and ultimately globally," Mr. Srinivas said.

"On domestic free television, HK Television Entertainment Company Limited has assembled a creative team of professionals in preparation for the commencement of broadcasting in April 2016. It has embarked on the production and acquisition of quality content to bring over 4,000 hours of fresh programming each year to offer Hong Kong viewers more choices in TV entertainment," he added.

Mr. Srinivas said, "PCCW Solutions has identified a number of growth drivers and will capitalize on the increasing market demand for digital, IoT and cloud solutions and facilities in Hong Kong and mainland China. A recently launched cloud solutions suite, "Infinitum", offers customers comprehensive enterprise business applications and digital and analytics solutions."

"As the leader in Hong Kong's telecommunications market, HKT will continue to provide high quality, high speed and reliable connectivity across its portfolio of fixed line, broadband and mobile communications services. In addition, HKT together with the Media business will continue to leverage our unique quadruple-play capabilities. These advantages enable HKT to constantly innovate on value-added services to complement its strong core offerings, thereby making solid and steady contributions to the Group," he said.

Mr. Srinivas concluded, "While both the local and global economic outlook in 2016 appears fragile, given our strong fundamentals, our efforts taken to transform ourselves in this digital era as outlined earlier, and a talented pool of staff who are motivated to excel, the Group is well-positioned for sustainable growth as it continues its journey to become a major player in the region."

For further details of the 2015 annual results, please refer to the announcement that has been filed with the Stock Exchange of Hong Kong.

Note: Core revenue refers to consolidated revenue excluding Pacific Century Premium Developments Limited ("PCPD"), the Group's property development and investment business; core EBITDA refers to consolidated EBITDA excluding PCPD; core profit attributable to equity holders of the Company refers to consolidated profit attributable to equity holders of the Company excluding PCPD.

About PCCW Limited

PCCW Limited (SEHK: 0008) is a global company headquartered in Hong Kong which holds interests in telecommunications, media, IT solutions, property development and investment, and other businesses.

The Company holds a majority interest in the HKT Trust and HKT Limited, Hong Kong's premier telecommunications service provider and leading operator in fixed-line, broadband and mobile communication services. HKT meets the needs of the Hong Kong public and local and international businesses with a wide range of services including local telephony, local data and broadband, international telecommunications, mobile, and other telecommunications businesses such as customer premises equipment sale, outsourcing, consulting, and contact centers.

PCCW also owns a fully integrated multimedia and entertainment group in Hong Kong, PCCW Media. PCCW Media operates the largest local pay-TV operation, now TV, and is engaged in the provision of over-the-top (OTT) video service under the Viu brand in Hong Kong and other places in the region.

Also wholly-owned by the Group, PCCW Solutions is a leading information technology outsourcing and business process outsourcing provider in Hong Kong and mainland China.

In addition, PCCW holds a majority interest in Pacific Century Premium Developments Limited, and overseas investments including the wholly-owned UK Broadband Limited. To learn more about PCCW, please visit www.pccw.com.

Issued by PCCW Limited.