SmarTone Telecommunications Holdings (315) H1 2026 earnings summary

Executive summary

• Profit attributable to shareholders rose 8.4% year-on-year to HKD 278 million, driven by growth in local service revenue, 5G home broadband, and efficiency gains.

• Total revenue increased 2% year-on-year to HKD 3.561 billion, with handset and accessory sales as a key contributor.

• Maintained leadership in the premium segment, expanding customer base by 10% year-on-year and sustaining high 5G ARPU at 2x 4G levels.

• Enhanced customer experience through innovative offerings, AI-driven services, and strategic partnerships, including with Sun Hung Kai Properties.

• Launched new services such as SmarTone PRIORITY (network slicing for premium customers), Kids CARE (parental control app), and AI Connect (AI tool gateway).

Financial highlights

• Profit after tax rose 8.4% year-on-year to HKD 278 million.

• Total revenue reached HKD 3.561 billion, a 2% increase year-on-year.

• Operating expenses decreased by 6%, and capital expenditure declined by 3% year-on-year to HKD 179 million.

• Service EBITDA margin remained steady at 54%.

• Interim dividend maintained at HKD 0.145 per share.

Outlook and guidance

• Focus remains on quality growth, scaled 5G home broadband, cost and CapEx discipline, and deepened AI-driven transformation.

• Continued investment in network quality and expansion of digital infrastructure, especially in new developments and the Northern Metropolis.

• Targeting growth from new talent and immigrants to Hong Kong, leveraging Greater Bay Area integration.

• Competitive environment expected to remain intense; strategy emphasizes consistency, sustainable advantage, and long-term value creation.