SmarTone Telecommunications Holdings (315) H2 2025 earnings summary

Executive summary

• Revenue increased 1% year-on-year to HKD 6,253 million, and profit after tax rose 2% to HKD 479 million, demonstrating resilience in a competitive market.

• Maintained leadership in the premium segment, with ARPU stable at HKD 222 and 5G ARPU double that of 4G.

• 5G Home Broadband revenue grew 16% and EBITDA increased 18% year-on-year; Enterprise Solutions EBITDA rose 24%.

• Achieved significant cost savings, enabling continued investment in network infrastructure, AI-driven productivity, and new growth opportunities.

• Continued innovation in digital safety, AI-powered services, and value-added offerings such as Disney+ bundles.

Financial highlights

• Profit after tax increased by 2% to HKD 479 million year-on-year.

• Total revenue up 1% year-on-year to HKD 6,253 million; service revenue (excluding handset sales) down 2% to HKD 4,415 million.

• EBITDA stable at HKD 2,445 million with a 39% margin; EBIT margin improved from 11% to 12%.

• Operating expenses reduced by 4% to HKD 1,612 million; core CapEx down 10% to HKD 451 million.

• Net cash increased by 30% to HKD 1,966 million; full year dividend per share maintained at HKD 0.32, yielding 6.88%.

Outlook and guidance

• Expect continued challenging operating environment and intense competition.

• Focus on expanding product suite for emerging segments, deepening premium customer relationships, and leveraging AI and 5G Home Broadband for growth.

• Ongoing cost discipline and investment in network quality and AI adoption.