Page 59 - Annual Report 2014

Group financial review

Profit from operations in FY14 increased by 0.7% to Profit before taxation was $1.5 million or 0.3% lower at
$476.7 million when compared to FY13, due to higher $456.1 million when compared to FY13.
revenue, partially offset by increase in operating expenses.
Taxation amounted to $85.6 million in FY14. Excluding the
EBITDA was $747.9 million or 33.7% of service revenue in FY14, adjustment for under-provision of prior years’ tax, the effective
an increase of 0.6% compared to FY13. tax rate was approximately 18.0% in FY14, due mainly to certain
non-deductible expenses for tax purposes.
Finance income was $0.8 million lower at $2.0 million in FY14,
primarily due to lower deposits. Profit after taxation decreased 2.4% to $370.5 million in FY14,
mainly due to higher net finance charges and adjustment of prior
Finance expenses increased $3.9 million or 20.6% to years’ tax under-provided.
$22.6 million in FY14, due to financing costs for new bank
loan facilities secured in FY14.

1.4 LIQUIDITY AND RESOURCES Year ended 31 December

Profit before taxation 2014 2013^
Non-cash items & net finance expenses adjustments
Net change in working capital $m $m
Income tax paid
Net cash from operating activities 456.1 457.5
Net cash used in investing activities
Net cash used in financing activities 256.0 243.7
Net change in cash and cash equivalents 8.1 (17.5)
Exchange difference on cash and cash equivalents (89.0)
Cash and cash equivalents at beginning of the year (65.3) 594.7
Cash and cash equivalents at end of the year 654.9 (299.4)
(318.8) (340.9)
(339.0) (45.6)

(2.9) 0.5
0.2 312.0
266.9 266.9
264.2

Free Cash Flow (1) 333.3 291.9

^ Restated
(1) Free Cash Flow refers to net cash from operating activities less purchase of fixed assets in the cash flow statement.

Net cash from operating activities in FY14 was $60.2 million As of 31 December 2014, the Group’s total outstanding capital
higher at $654.9 million, primarily contributed by higher cash expenditure commitments amounted to $438.9 million. The
flows from operations, coupled with lower income tax paid and outstanding commitments include those for the 4G spectrum
reduced working capital needs. Positive working capital changes rights, construction of MediaHub building, support systems,
of $8.1 million in FY14 was made up of higher net balance due expansion and enhancement of our infrastructure and network
to related parties, and trade and other payables, offset by higher systems for all our lines of businesses.
trade receivables, other receivables, deposits and prepayments.
Free cash flow was up $41.4 million to $333.3 million in FY14,
Net cash outflow from investing activities increased by $19.4 due to the higher cash flow from operations.
million to $318.8 million in FY14, arising mainly from CAPEX
payments and included $40.0 million for the 4G spectrum. Total Net cash outflow from financing activities was $1.9 million lower
CAPEX payments in FY14 were $18.8 million higher at $321.6 at $339.0 million in FY14, primarily from higher grants receipts,
million, compared to $302.8 million in FY13. As a percentage of offset by higher payment of finance expenses and dividends.
revenue, CAPEX payments were 13.5% in FY14, as compared to
12.8% in FY13. As at 31 December 2014, the Group’s cash and cash equivalents
amounted to $264.2 million, slightly lower than $266.9 million
a year ago.

56 many lives of hubbing