PCCW (0008-HK) total assets US$9.6b

13:54  17-AUG-2000
PCCW (0008-HK) total assets US$9.6b, total staff 15,000

Based on the asset value as at March 31, Pacific
Century CyberWorks (PCCW)'s total assets after the merger will be US$9.6 billion (HK$74.88 billion).
The company will have 15,000 employees working in 25 offices in 18 countries. Based on market capitalisation, the company will become the largest Internet enterprise in Asia. Looking into the history of PCCW, Pacific Century Regional Development Ltd was incorporated in October, 1993.
In 1998, it formed a joint venture company with its subsidiary Pacific Century Convergence and Intel (4335-HK).
It had a formal debut in Hong Kong through Tricom in August, 1999 and was merged with Cable & Wireless HKT in February, 2000.
In April, it formed an alliance with Australia's Telstra and then in June began the formal broadcasting of NOW service.
In August, it took over Japanese software operator Jaleco for a back-door listing in Japan.
The merger with Cable & Wireless HKT was completed on August 17.
It will be listing in the US in form of depositary securities on August 22.
PCCW's global strategic partners are Intel, CMGI, telecom and media investor HMTF, largest sports content provider TWI, satellite technology company Daimler Chrysler Aerospace and Legend (0992-HK).  

ich bin zwar absoluter Befürworter von pcc, aber nüchtern betrachtet, wird es endlos lange dauern, bis der Kurs zunächst mal an die 5 Euro herankommt.

Geneu diese Warterei macht pcc für mich zur Geduldsprobe.  

                      PCCW (0008)  BUY

                      $15.35

                       

At PCCW's analyst meeting yesterday, Chairman Richard Li outlined the restructuring of its 8 business divisions into 3 core operating sectors and announced aggressive plans to double the company's market capitalisation. We believe most of the future earnings growth prospects for PCCW will come from Global Communication Services and Net Enterprises.

PCCW's Business Divisions

(1) Telecommunication Services Fixed network services

(2) Global Communication Services Connectivity  Mobility

(3) Net Enterprise NOW - B2C B2B  Data Centers
Cyberworks Ventures

The eighth business division, Infrastructure Services will serve all sectors and units within the PCCW group. Telecommunications Services comprise HKT's existing fixed line telephone services in Hong Kong that span 2.1mn residential and 1.5mn business lines. This division is expected to generate strong earnings and revenues and remain the group's cash cow. Expansion opportunities will li mainly in its broadband network that covers 95% of Hong Kong via fibre and XDSL. Using the broadband network as a foundation, PCCW plans to expand its broadband infrastructure across Asia Pacific and the PRC.
Global Communication Services consist of the 50-50 JVs with Telstra on IP backbone and mobile phone services. Management expects to announce details of the JVs within one month.
PCCW intends to build a global IP backbone and mobile phone network by injecting HKT and Telstra's assets into the JVs. As HKT and Telstra are already spending US$300-400mn pa in  building their networks, we do not expect PCCW will need to invest in substantial new capex that will impact the group's financial position.
With IP backbone industry benchmarks such as Level 3 and Global Crossing commanding high PE valuations in the US stock market, management is looking to realise some value by spinning-off the IP backbone business next year. There are plans to seek a separate listing for the mobile phone operations too. When 3G platforms begin to be rolled out, PCCW plans to offer its Network Of the World (NOW) services through mobile handsets.

PCCW expects to see explosive growth for its Net Enterprises business where the company is eyeing opportunities to leverage on its Telecommunications and Global Communications operating sectors to establish JVs with ISPs in the Greater China and Asia. The broad aim is to bundle ISP services with PCCW's NOW broadband services to deliver streaming video and web content.