HKT Trust and HKT (6823) H2 2025 earnings summary

Executive summary

• Revenue grew 5% year-on-year to HK$36,553 million (US$4,686 million), with EBITDA up 4% to HK$14,234 million (US$1,825 million) and adjusted funds flow rising 4% to HK$6,199 million (US$795 million).

• Net profit attributable to holders increased 4% to HK$5,286 million (US$678 million), with total distribution per share stapled unit at 81.77 HK cents.

• Maintained investment grade credit ratings (Moody’s Baa2, S&P BBB) and a solid capital structure.

• Achieved strong performance amid macroeconomic and geopolitical uncertainty, driven by enterprise, broadband, and 5G growth.

• AI adoption enhanced efficiency and digital transformation for both consumer and enterprise segments.

Financial highlights

• Revenue excluding mobile product sales rose 3% to HK$33,016 million (US$4,233 million); EBITDA margin (excluding mobile product sales) improved to 43.1%.

• Dividend yield sustained at 6.9%, with a 5-year CAGR of 3% in distributions.

• Net finance costs decreased 23% to HK$1,720 million; effective tax rate at 14%.

• Operating costs-to-revenue ratio improved to 8.7% from 9.5%, reflecting 4% opex savings.

• Post-paid ARPU for December 2025: HK$195 (+1% year-on-year); post-paid churn rate at 0.7%.

Outlook and guidance

• Management expects continued growth in 2026, supported by economic stabilization, government policy, and digital infrastructure investment.

• Focus on AI deployment, cloud, and innovation to drive future growth.

• Roaming and enterprise revenue growth rates expected to be sustained or improved, leveraging AI and cloud trends.

• Ongoing focus on deleveraging and capital structure optimization.