HKBN (1310) H2 2025 earnings summary

Executive summary

• Revenue reached HKD 11.129 billion, up 4% year-over-year, with EBITDA at HKD 2.451 billion and net profit surging to HKD 207 million, over 20 times higher year-over-year.

• Free cash flow increased 9% to HKD 677 million, while CapEx decreased 3% to HKD 1.592 billion.

• Dividend per share was HKD 34.43, with a final dividend of 18.9 cents per share, up from 16.5 cents last year.

• Strategic focus on digital transformation, GigaFast, AI, and leveraging China Mobile's resources for growth.

• Deleveraging improved net debt to EBITDA ratio from 4.93x to 4.66x.

Financial highlights

• Enterprise core telecom revenue rose 3% to HKD 2.688 billion; system integration revenue up 14%.

• Residential core telecom revenue increased 2% to HKD 2.027 billion; ARPU and ARPH both up.

• GigaFast broadband penetration rose, with over 12,000 enterprise and 95,000 residential customers on 2Gbps+ plans.

• SI business revenue grew 14%, gross profit up 16%.

• Adjusted free cash flow was HKD 677 million, up 9% year-over-year.

Outlook and guidance

• Growth strategy centers on GigaFast, enterprise and residential solutions, and ecosystem alliances for overseas expansion.

• Enterprise solutions revenue projected to triple over the next three years, driven by cybersecurity and digital transformation.

• Focus on launching new solutions (MetroNet 100G, 2.5G/5G/10G) and leveraging China Mobile's resources.

• Dividend policy targets stable payout, not less than 75% of adjusted net profit, with regular reviews.

• Positioned for sustainable, high-quality growth in FY26, leveraging infrastructure and strategic partnerships.