(Hong Kong - 25 April 2025) HKBN Ltd. (“HKBN” or the “Company”; SEHK stock code: 1310) today announced its operational and financial results for the six months ended 28 February 2025 (“1H2025”). Despite persistent macroeconomic headwinds and subdued customer spending, HKBN leveraged its robust telecommunications infrastructure and disciplined execution of its strategic roadmap to deliver solid results across its Enterprise and Residential Solutions businesses. By enhancing operational efficiency and fortifying its core businesses, the Group has strengthened its foundation for long-term sustainable growth and profitability.

ANNOUNCEMENT HIGHLIGHTS

• Revenue excluding sales of handsets increased by 4%. Primarily due to weaker-than-expected performance in sales of handsets and other products, total revenue decreased by 1% to HK$5,734 million.
• EBITDA increased by 5% to HK$1,206 million, due to strong operational performance and strategic initiatives targeted at driving growth.
• Adjusted free cash flow (“AFF”) increased by 2% to HK$126 million, contributed by improving EBITDA and interest savings.
• Net profit increased from HK$1.5 million to HK$108 million, primarily driven by operational efficiencies that reduced operating expenses and lower finance costs.
• In consideration of the Company’s dividend policy and anticipated capital expenditure needs to drive long-term shareholder value, the Board has resolved to declare an interim dividend of 15.5 HK cents per share (29 February 2024: 15 HK cents per share).

William Yeung, HKBN Executive Vice-chairman & Group CEO said, “Our 25Gbps GigaFast network is the backbone of tomorrow’s digital landscape – enabling AI-powered enterprise solutions and next-gen residential experiences. Through strategic partnerships, our Infinite-play strategy, and our sustainability-linked loan, HKBN is enhancing our agility, resilience, and ESG leadership to meet the future demands with speed, execution, and purpose.”

Enterprise Solutions: Driving Revenue Growth and Business Opportunities

In the face of industry-wide challenges, the Enterprise Solutions business thrived with revenue growth of 6% to HK$3,442 million. The business continued to strengthen, recording a 10% increase in enterprise services revenue – excluding enterprise-related product revenue – a testament to the strength of its core services and system integration capabilities. Fuelled by robust demand for digital transformation, the system integration business delivered impressive revenue growth of 10%.

Residential Solutions: Strengthened Infinite-play Engagement for ARPH (Average Revenue Per Household) Growth

The Residential Solutions business remained resilient, with a slight revenue decline of 1% to HK$1,166 million. New and expanded partnerships with INDICAID, Evercare, AXA Hong Kong and Macau, and Max enriched the Infinite-play ecosystem, delivering innovative offerings across healthcare, travel insurance, and OTT entertainment. These collaborations boosted customer engagement, lifting residential ARPU (Average Revenue Per User) by 3% to HK$186, and ARPH (Average Revenue Per Household) by 5% to HK$212.

For more details about HKBN’s results in 1H25 please, refer to the announcement:
https://reg.hkbn.net/WwwCMS/upload/pdf/en/e_FY25_InterimResultsAnnouncement.pdf

HKBN announced its 1H2025 interim results. At the results presentation, William Yeung (centre), Executive Vice-chairman & Group CEO; Dr. Denis Yip (right), President and Group COO; and Derek Yue (left), CFO; highlighted how HKBN achieved a sustainable performance supercharged by GigaFast solutions.