SmarTone Telecommunications Holdings (315) H2 2026 earnings summary

Executive summary

• Profit after tax rose 10% year-over-year to HK$525 million, with revenue up 6% to HK$6,604 million and underlying EBIT up 6.9% to HK$749 million, driven by diversified revenue streams, strong 5G adoption, and handset sales.

• Maintained strict cost discipline, with OPEX down 6% and CAPEX down 21% year-over-year, supporting margin expansion and operational efficiency.

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

• Full-year dividend per share held steady at 32 cents, with stable dividend payments and a strong balance sheet.

• Growth in 5G Home Broadband (up 10%) and Enterprise Solutions (up 17%) offset a 3% decline in total service revenue and a slight drop in postpaid ARPU from $222 to $220.

Financial highlights

• Revenue rose to HK$6,604 million (+5.6% YoY); underlying EBIT up 6.9% to HK$749 million.

• Profit after tax increased 9.6% to HK$525 million; net cash position improved 29% to HK$2,535 million.

• Operating cash inflow grew 5% year-over-year to HK$2,229 million; cash and bank balances rose 28% to HK$2,592 million.

• Service EBITDA margin reached 55% (+0.5pp YoY); postpaid ARPU slightly declined 1% to $220.

• Handset and accessory sales contributed significantly to overall revenue growth.

Outlook and guidance

• Focus on value-driven growth over volume, leveraging AI and digital transformation for cost savings and customer engagement.

• Accelerating 5G Home Broadband and targeted network investments to reinforce market leadership.

• The market is expected to remain highly competitive, with a focus on reversing service revenue decline and stabilizing ARPU.