Hong Kong – CITIC Telecom International Holdings (CITIC Telecom) released its unaudited interim results for the six months ended 30 June 2026, highlighting steady profitability amid a marginal revenue contraction and continued balance-sheet strengthening.
Financial highlights • Total revenue slipped 1.2% year-on-year (YoY) to HK$4.75 billion, as softer handset sales offset stable service income. • Core telecommunications service revenue was largely flat at HK$4.08 billion (-0.1% YoY). • Profit attributable to equity shareholders rose 0.4% YoY to HK$463 million, with basic earnings per share unchanged at HK12.5 cents. • EBITDA declined 2.1% YoY to HK$941 million; operating margin (EBITDA/total revenue) remained firm at 19.8%. • Interim dividend declared at HK5.0 cents per share, down from HK6.0 cents a year earlier, payable on 30 September 2026.
Operational performance • Acquisition of 100% of Hutchison Telephone (Macau) in January boosted mobile services revenue 11.3% to HK$610 million and lifted Macau mobile market share to 63.6%. • Group mobile subscriber base expanded 13.8% YoY to about 914,000, with 5G penetration reaching 92.9%. • Internet services revenue held steady at HK$750 million, while broadband users in Macau edged up to approximately 210,000, sustaining a 96.0% local market share. • International telecommunications services grew 3.5% to HK$1.39 billion, supported by voice (+3.0%) and “DataMall 自由行” roaming data (+32.0%). • Enterprise solutions revenue contracted 6.9% to HK$1.27 billion; fixed-line services fell 7.9% to HK$58 million.
Cost and expenses • Cost of sales and services fell 3.5% to HK$2.92 billion, mirroring softer handset volumes. • Staff costs increased 1.8% to HK$553 million; other operating expenses rose 26.5% to HK$353 million, partly reflecting consolidation of Hutchison Macau. • Finance costs declined 44.1% to HK$52 million after full redemption of US$450 million bonds in March 2025 and net loan repayments of HK$348 million in H1 2026.
Balance-sheet and cash flow • Total debt fell 10.1% to HK$2.93 billion; cash and deposits stood at HK$1.78 billion, trimming net gearing to 9% (31 Dec 2025: 11%). • Operating cash inflow reached HK$948 million; free cash flow (after HK$145 million capex and HK$63 million lease payments) supported dividend payout and debt reduction. • Undrawn committed facilities of HK$4.69 billion provide ample liquidity against HK$0.65 billion debt maturing within 12 months.
Strategic progress • Accelerated rollout of 5.5G and F5.5G “dual 10-Gigabit” networks in Macau; upgraded eSIM and private-network offerings for local enterprises. • Expanded Asia-Pacific connectivity via nearly 170 global PoPs and 60+ SD-WAN gateways; introduced SmartCLOUD C-Compute and SASE solutions. • Advanced “AI Macau” initiative, deploying AI-powered translation screens and big-data analytics; launched AI-driven security operations centre (AI SOC). • Signed memorandum with Guangxi Data Group to establish a Macau Data & AI International Cooperation Service Center, reinforcing cross-border digital-service ambitions. • Maintained ESG focus; cross-border encrypted communication solution named a 2026 “Top Ten Lighthouse Project” at the Digital China Summit.
Outlook Management reiterated commitment to “international development and technological leadership,” targeting further 5.5G expansion in Macau, deeper Southeast Asian penetration, and transition toward an integrated AI service provider model while preserving financial discipline.
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