Hong Kong – SmarTone Telecommunications (SmarTone) reported interim profit attributable to shareholders of HK$278.33 million for the six months ended 31 December 2025, an 8.44% year-on-year increase from HK$256.66 million, supported by tight cost control and expanding high-margin business lines.

Total revenue edged up 1.99% to HK$3.56 billion, driven chiefly by a 16.06% rise in handset and accessory sales to HK$1.38 billion that offset a softer service turnover. Local service revenue reached HK$1.87 billion, up 3% versus the prior half-year. Mobile post-paid subscribers grew 2% year on year, while churn held at 0.7%; roaming penetration climbed to 70%.

Disciplined expense management underpinned earnings: staff costs fell 4.87% to HK$339.58 million and other operating expenses contracted 7.40% to HK$432.09 million. Operating costs overall declined 6%, keeping service EBITDA margin firm at 54%. Depreciation, amortisation and disposal losses eased 3.63% to HK$828.00 million.

Operating profit slipped 6.66% to HK$391.60 million, but finance costs decreased 4.38% to HK$51.61 million and the effective tax rate narrowed to 26.7%, supporting the bottom-line expansion.

Net cash generated from operations jumped 38.94% to HK$1.35 billion, lifting cash and bank balances to HK$2.44 billion as of 31 December 2025, up 20.09% from 30 June 2025. Total borrowings stood at HK$59.00 million, while total equity rose to HK$5.39 billion. Capital expenditure on fixed assets reached HK$330.56 million, complemented by HK$167.70 million in spectrum licence payments.

The company’s 5G home broadband segment recorded 36% EBIT growth year on year, and continued investments in “5G Golden Spectrum” deployment and AI-driven network optimisation bolstered network performance. Initiatives such as SmarTone PRIORITY (5G network slicing), Kids CARE and AI Connect were launched to deepen customer engagement and diversify revenues.

The board declared an unchanged interim dividend of HK$0.145 per share, payable on or about 19 March 2026 to shareholders on record as of 10 March 2026.

Management reaffirmed its commitment to superior network quality, AI-enabled efficiency gains and leveraging Sun Hung Kai Properties group synergies to capture opportunities from Greater Bay Area integration and new talent inflows into Hong Kong.