SmarTone Telecommunications Holdings (315) H2 2026 earnings summary

Executive summary

• Profit after tax rose 10% year-over-year to HKD 525 million, with revenue up 6% to HKD 6,604 million, driven by diversified products, strong 5G adoption, and enterprise growth.

• Maintained strict cost discipline, with operating expenses down 6% and capital expenditure reduced by 21%, supporting margin expansion.

• Service EBITDA margin improved by 0.5 percentage points to 55%, reflecting operational efficiency gains.

• Full-year dividend per share maintained at HKD 0.32, with stable dividend payments and a strong balance sheet.

• Focused on quality growth, premium customer experience, and disciplined execution.

Financial highlights

• Revenue increased 5.6% to HKD 6,604 million; profit after tax rose 9.6% to HKD 525 million; underlying EBIT up 6.9% to HKD 749 million.

• Net cash position improved 29% to HKD 2,535 million; operating cash inflow grew 5% to HKD 2,229 million.

• Service EBITDA margin reached 55%; postpaid ARPU declined 1% to HKD 220.

• 5G Home Broadband revenue up 10%, EBIT up 31% year-over-year.

• Staff costs and other operating expenses fell by 8% and 4% year-over-year, respectively.

Outlook and guidance

• Market expected to remain highly competitive; focus remains on value-driven growth, premium services, and reversing service revenue decline.

• Continued cost discipline, AI adoption, and targeted CapEx to drive productivity and efficiency.

• Accelerate 5G Home Broadband growth and targeted network investments.

• Commitment to consistent earnings and long-term shareholder value.

• Continued investment in network quality and leveraging group synergies.