HKBN (1310) H1 2026 earnings summary

Executive summary

• Revenue increased 5.1% year-on-year to HKD 6.029 billion for the first half of 2026, with EBITDA up 14.2% and net profit up 20% to HKD 108 million, driven by strong enterprise solutions and stable residential business.

• Strategic focus on digital transformation, AI integration, copper-to-fiber network upgrades, and global expansion, with enhanced cross-border synergies and partnerships, including China Mobile.

• Enhanced network coverage and quality, now reaching 2.66 million residential households, and launched innovative offerings in healthcare, cybersecurity, and data intelligence.

• Five co-creation synergies drive transformation: customer, business, service, resource, and procurement.

• Strong enterprise and residential business growth, with digital and AI solutions fueling transformation.

Financial highlights

• Revenue reached HKD 6.029 billion, up 5.1% year-on-year; EBITDA at HKD 1.257 billion, up 14.2%; net profit at HKD 108 million, up 20%.

• Operating expenses decreased 2.8% to HKD 1.499 billion year-on-year.

• Dividend per share maintained at HKD 0.155, flat year-on-year.

• Adjusted free cash flow up 24.5% to HKD 157 million.

• CapEx increased 13% year-on-year, focused on AI, smart services, and network upgrades.

Outlook and guidance

• Dividend payout policy targets at least 75% of adjusted free cash flow, with ongoing review based on capital needs and performance.

• Expectation of lower finance costs due to declining and stabilizing interest rates.

• Continued expansion in AI, network integration, and international business, with new AI+network initiatives planned.

• Focus on expanding GigaFast broadband adoption in households and SMEs, and advancing the "Fibre In, Copper Out" upgrade.

• Residential strategy to deepen “Infinite-Play” offerings into gerontechnology, insurance, healthcare, and smart living.