HKT Trust and HKT (6823) H1 2025 earnings summary

Executive summary

• Revenue grew 4% year-over-year to HK$17,322 million (US$2.22 billion), with EBITDA up over 3% to HK$6,380 million (US$818 million) and profit attributable to holders of Share Stapled Units up 4% to HK$2,070 million (US$265 million).

• Enterprise business revenue expanded 11%, with new project wins exceeding HK$2.2 billion and strong growth in AI-driven solutions and international connectivity.

• 5G post-paid subscribers grew 21% year-over-year to 1.894 million, now over 54% of the mobile post-paid base; broadband FTTH connections increased 3% to 1.055 million.

• AI-driven initiatives enhanced customer experience, operational efficiency, and cost savings, with a 7% reduction in overall cost base.

• Interim distribution per Share Stapled Unit declared at 33.80 HK cents.

Financial highlights

• Total revenue: HK$17,322 million (US$2.22 billion), up 4% year-over-year; EBITDA: HK$6,380 million (US$818 million), up 3%; AFF: HK$2,562 million (US$328 million), up 3%.

• EBITDA margin steady at 37% overall; TSS margin: 35%; Mobile margin: 46%; Mobile services margin: 58%.

• Net finance costs fell 19% to HK$885 million due to deleveraging and lower interest rates; effective interest rate at 3.96%.

• Capital expenditure: HK$1,075 million, 6.2% of revenue; opex savings of 4% achieved, with opex-to-revenue ratio at 11.1%.

• Interim distribution per Share Stapled Unit: 33.80 HK cents.

Outlook and guidance

• Management expects AFF growth to accelerate in the second half of 2025, supported by further deleveraging and the full impact of lower interest rates.

• Continued investment in AI innovation, digital infrastructure, and international connectivity is planned.

• Enterprise revenue growth targeted at 10%-12% for the full year, with optimism for both consumer and commercial segments.

• Full-year interest savings expected at 25%-30% if HIBOR remains low.

• Second half working capital expected to improve as project completions drive collections.