PCCW (8) H1 2026 earnings summary

Executive summary

• Consolidated revenue increased 7% year-over-year to HK$20,204 million (US$2,590 million), with EBITDA up 3% to HK$6,182 million (US$793 million), and consolidated profit for the period rising 27% to HK$959 million.

• Growth was driven by strong performance in HKT, OTT, and Free TV segments, with robust OTT subscriber gains and resilient mobile and enterprise demand.

• Viu's paid subscriber base reached 15.3 million, driving a 5% rise in subscription revenue, while ViuTV digital memberships grew 4% to 3.4 million.

• Interim dividend declared at 9.77 HK cents per share, reflecting a disciplined policy prioritizing financial strength and stable returns.

Financial highlights

• HKT revenue up 8% year-over-year to HK$18,685 million (US$2,396 million), with EBITDA up 3% to HK$6,586 million (US$844 million).

• OTT business revenue was US$142 million (+5% YoY), with paid subscribers reaching 15.3 million (+11% YoY).

• Free TV & Related revenue increased 8% to US$47 million (HK$370 million), with EBITDA at US$3 million (HK$22 million).

• Operating expenses decreased by 3%, improving the opex-to-revenue ratio to 14.2%.

• Capex-to-revenue ratio improved to 5.3% as capital expenditure eased post major investment cycles.

Outlook and guidance

• AI integration is expected to further enhance operational efficiency, content creation, and monetization across business units.

• Major content launches, events, and group concerts in the second half of 2026 are expected to boost digital memberships, advertising, and profitability.

• Ongoing disciplined dividend policy and regular review to optimize shareholder value.