HKBN (1310) H1 2025 earnings summary

Executive summary

• EBITDA increased 5% year-over-year to $1,206 million, with net profit surging to $108 million from $1.5 million, driven by operational efficiencies and lower finance costs.

• Revenue excluding handset sales rose 4%, but total revenue declined 1% year-over-year to $5,734 million due to weaker handset and product sales.

• Enterprise Solutions and Residential Solutions both contributed to growth, with GigaFast and Infinite-Play solutions gaining traction.

• Strategic partnerships in AI, cloud, and cybersecurity, and the launch of the InnoTech Ecosystem Alliance, positioned the group for future growth.

• Interim dividend declared at 15.5 cents per share, up from 15 cents last year.

Financial highlights

• Enterprise Solutions revenue grew 10% year-over-year to $2,550 million; Residential Solutions revenue dipped 1% to $1,166 million.

• Handset and other product revenue fell 17% year-over-year.

• Adjusted free cash flow increased 2% year-over-year to $126 million.

• Network and cost of sales decreased 2% to $3,720 million; other operating expenses dropped 4% to $1,541 million.

• Net income for the first half was $108 million.

Outlook and guidance

• Management expects continued operational efficiency gains and sustainable growth, with a focus on innovation, digital transformation, and expanding Infinite-Play and GigaFast offerings.

• Partnerships in AI, cloud, and data center services are expected to drive enterprise growth.

• Interest rate reductions and recent debt refinancing are expected to lower future financing costs.

• Ongoing commitment to sustainability, with a $6.75 billion sustainability-linked loan and science-based climate targets.

• No significant impact expected from trade wars or geopolitical tensions.