HKT Trust and HKT (6823) H1 2024 earnings summary

Executive summary

• Achieved 2% year-over-year revenue growth to HK$16,669 million and 3% EBITDA growth to HK$6,168 million for the six months ended 30 June 2024, driven by broadband, 5G, and enterprise solutions.

• Mobile services revenue grew 5% year-over-year, with 5G customers reaching 1.571 million, representing 46% of the post-paid base.

• Enterprise revenue increased 7% year-over-year, supported by strong demand for digital transformation and smart city solutions, with HK$2.5 billion in new contracts, up 27%.

• Enhanced digital ecosystem and consumer offerings, including first-to-market 50G PON, expanded 5G, and integrated smart living solutions.

• Interim distribution per Share Stapled Unit declared at 32.92 HK cents.

Financial highlights

• Total revenue rose 2% year-over-year to HK$16,669 million; revenue excluding Mobile product sales up 3% to HK$15,683 million.

• EBITDA increased 3% to HK$6,168 million, with margin stable at 37%.

• Adjusted funds flow up 3% to HK$2,495 million; profit attributable to holders of Share Stapled Units rose 2% to HK$1,990 million.

• Interim distribution per Share Stapled Unit of 32.92 HK cents.

• Opex to revenue ratio improved to 12.1% from 12.9% year-over-year.

Outlook and guidance

• Ongoing investment in digital capabilities, 5G network expansion, and technology, with prudent capital allocation based on market conditions.

• Strategic partnership with China Merchants Capital Holdings to support network expansion, reduce leverage, and share capex.

• Anticipates further growth in digital solutions, smart living, and enterprise transformation services.

• Focus on operating efficiencies, cost optimization, and disciplined capital investments.

• Expects further growth from new AI-featured handsets and continued 5G adoption.