[ET Net News Agency, 8 February 2021] HSBC Global Research lowered its target price for
PCCW (00008) to HK$4.9 from HK$5.4 and maintained its "hold" rating.
The research house said the Viu "Over The Top" business continues to grow steadily, with
declines in music revenue offset by growth in video. Its EBITDA losses narrowed slightly
in 2H, but halved compared to 2019 - management now expects break-even in 1-2 years. Now
TV EBITDA was stable, despite lower revenues - HSBC expects trends to improve in 2021 as
more sporting events (such as the delayed Euro 2020) resume.
HSBC cut its sales estimates for 2021/22 by 3.6-4.5% on lower PCPD (00432) estimates. It
also trimmed its EBITDA forecasts by 4.2-5.5% due to reduced profitability estimates in
the Solutions business. (KL)