PCCW (HKSE:00008) Gross Margin %

: 49.61% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. PCCW's Gross Profit for the six months ended in Dec. 2023 was HK$9,673 Mil. PCCW's Revenue for the six months ended in Dec. 2023 was HK$19,497 Mil. Therefore, PCCW's Gross Margin % for the quarter that ended in Dec. 2023 was 49.61%.

The historical rank and industry rank for PCCW's Gross Margin % or its related term are showing as below:

HKSE:00008' s Gross Margin % Range Over the Past 10 Years
Min: 46.67 Med: 50.18 Max: 54.47
Current: 50.16

During the past 13 years, the highest Gross Margin % of PCCW was 54.47%. The lowest was 46.67%. And the median was 50.18%.

HKSE:00008's Gross Margin % is ranked better than
51.13% of 354 companies
in the Telecommunication Services industry
Industry Median: 48.98 vs HKSE:00008: 50.16

PCCW had a gross margin of 49.61% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for PCCW was 1.30% per year.

PCCW Gross Margin % Historical Data

The historical data trend for PCCW's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PCCW Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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49.61

46.67

50.01

50.33

50.16

PCCW Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															54.63	51.31	49.47	50.79	49.61

Competitive Comparison

For the Telecom Services subindustry, PCCW's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

PCCW Gross Margin % Distribution

For the Telecommunication Services industry and Communication Services sector, PCCW's Gross Margin % distribution charts can be found below:

* The bar in red indicates where PCCW's Gross Margin % falls into.

PCCW Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

PCCW's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	18231	/	36347
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(36347 - 18116)	/	36347
	=	50.16 %

PCCW's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	9673	/	19497
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(19497 - 9824)	/	19497
	=	49.61 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

PCCW (HKSE:00008) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

PCCW had a gross margin of 49.61% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

PCCW Gross Margin % Related Terms

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PCCW (HKSE:00008) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » PCCW Ltd (HKSE:00008) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

PCWLF:USA PCCWY:USA TH3B:Germany

Address

Taikoo Place, 979 King’s Road, 41st Floor, PCCW Tower, Quarry Bay, Hong Kong, HKG

Website

http://www.pccw.com

PCCW Ltd is a Hong Kong-based company engaged in the businesses of telecommunications, media, information technology solutions, property development and investment, and others. Its operating segments are HKT Limited (HKT), Media Business, and Solutions Business. The entity derives key revenue from the HKT segment, which includes the provision of telecommunications and related services such as local telephony, local data and broadband, international telecommunications, mobile, and other telecommunications businesses such as customer premises equipment sales, outsourcing, consulting, and contact centers. The company operates in Hong Kong, Mainland and other parts of China, Singapore and other countries, of which maximum revenue is derived from the operations in Hong Kong.

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