Hong Kong Broadband Network (HKEX:1310) presented its fiscal 2026 interim results on April 24, 2026, showcasing steady revenue growth and improved operational efficiency amid a competitive telecommunications landscape. The company reported revenue of HKD 6,029 million, up 5.1% year-over-year, while successfully reducing operating expenses and improving its leverage position.
Trading at HKD 8.20, HKBN’s stock has delivered a 72% total return over the past year, significantly outperforming broader market indices despite a modest 0.12% recent decline. The company maintained its dividend at 15.5 HK cents per share, continuing an 11-year track record of consistent shareholder returns with a current yield of 4.2%.
As shown in the following financial summary, HKBN demonstrated balanced growth across key metrics while achieving notable operational improvements.
The company’s EBITDA reached HKD 1,257 million, representing a 4.2% year-over-year increase, while net profit grew modestly by 0.1% to HKD 108 million. More significantly, adjusted free flow surged 24.5% to HKD 157 million, reflecting improved cash generation capabilities. Operating expenses declined 2.8% to HKD 1,499 million, demonstrating effective cost management.
HKBN’s deleveraging efforts showed tangible progress, with the leverage ratio improving from 4.79x to 4.58x, reducing financial risk while maintaining growth investments. This operational discipline positioned the company to sustain its dividend policy while funding strategic infrastructure initiatives.
The enterprise segment emerged as HKBN’s primary growth driver during the interim period, with telecom revenue advancing 10.5% year-over-year to HKD 2,817 million. System integration revenue grew 11.1% to HKD 433 million, reflecting strong demand for digital transformation solutions.
The company’s enterprise performance metrics illustrated this momentum across multiple dimensions.
Particularly noteworthy was the surge in high-speed broadband adoption, with customers subscribing to 2Gbps and above GigaFast services exceeding 18,000—more than doubling year-over-year. The average monthly churn rate improved to 1.1% from 1.3%, indicating enhanced customer retention. Building coverage expanded to 8,266 commercial facilities, up 1% annually.
The GigaFast Business Broadband penetration rate demonstrated accelerating adoption since its August 2024 launch, as illustrated in the following growth trajectory.
From an initial 0.8% penetration in August 2024, the service reached 19.4% by February 2026, with approximately 18,000 customers and a 70% router bundling rate. This rapid adoption reflected strong enterprise demand for ultra-high-speed connectivity to support cloud computing, AI applications, and digital operations.
HKBN’s value-added services for small and medium enterprises showed substantial traction, with the company offering integrated solutions spanning retail point-of-sale systems, property management platforms, smart education tools, and cybersecurity services.
The value-added package performance indicated strong market acceptance, with new subscribers exceeding 7,000 during the period and cumulative subscribers reaching 11,000 since the June 2025 launch of the Biz-in-Motion initiative. Average monthly fees increased by more than 25% to HKD 800, while total new contract value reached HKD 150 million, up 11% year-over-year.
For large and medium enterprises, HKBN emphasized its system integration capabilities, delivering HKD 95 million in project value during the interim period, with cumulative project value exceeding HKD 240 million since fiscal 2025.
The company positioned itself as Hong Kong’s leading cloud and managed services operator, partnering with AWS as an Advanced Tier Services Partner and Alibaba Cloud as an Elite Partner. Cloud services revenue grew 16% year-over-year, while system integration gross profit increased 16% to HKD 83 million.
HKBN outlined significant network infrastructure investments aimed at strengthening its competitive position and enabling next-generation services. The company expanded its residential network coverage to 2.66 million households, up 2% year-over-year, while pursuing a "Fibre In, Copper Out" strategy to transition legacy copper network customers to fiber optic services.
The centerpiece of HKBN’s infrastructure strategy involved upgrading its MetroNet to 100Gbps capacity, a tenfold increase designed to support AI, cloud computing, and high-performance computing applications.
This 100Gbps enterprise-grade network enabled seamless connectivity between customers in the Greater Bay Area, Singapore, and Japan with Hong Kong data centers and multi-cloud platforms. The company highlighted core capabilities including real-time transmission of massive data, enhanced cross-border network hub functionality in Asia-Pacific, scalable ultra-high-bandwidth infrastructure, and support for AI applications.
Network quality improvements leveraged synergies with China Mobile Group, HKBN’s strategic partner. The company reported a 36% increase in localized traffic scheduling accuracy and 30% growth in localized traffic volume.
Latency reductions proved particularly dramatic for Chinese Mainland applications, with mainstream gaming latency decreasing 65% from 60-120ms to 20-30ms. Popular applications including TikTok, Taobao, and Xiaomi showed significant traffic volume increases and latency improvements, enhancing user experience for cross-border connectivity.
HKBN presented an ambitious Northern Metropolis Network Strategy aligned with Hong Kong’s Innovation and Technology development priorities.
The strategy targets network coverage for up to 350,000 residential households in the Northern Metropolis, which comprises approximately one-third of Hong Kong’s land area and future population. Key deployments include data center interconnection via high-speed private networks and government and enterprise private networks supporting IoT, AI, and cloud applications for technology parks and institutions.
The residential segment delivered steady performance with telecom revenue of HKD 1,241 million, up 3.8% year-over-year, while average revenue per household increased 2.8% to HKD 218.
Broadband subscriptions reached 916,000, growing 1.8% annually, with homes passed expanding to 2.66 million. The standout metric came from 2Gbps and above GigaFast subscriptions, which surged 42.7% to approximately 114,000 customers.
GigaFast Home Broadband penetration accelerated throughout the period, as demonstrated in the following adoption curve.
From 9% penetration in August 2024, the service reached 15% by February 2026, representing 43% year-over-year growth. The 114,000 GigaFast customers accounted for 15% of the upgradable customer base, with a router bundling rate exceeding 80%. Notably, 10% of subscribers opted for premium 5Gbps and 10Gbps plans, indicating strong demand for ultra-high-speed residential connectivity.
HKBN’s "Infinite-Play" ecosystem strategy aimed to increase customer lifetime value by bundling diverse services beyond basic connectivity.
The comprehensive ecosystem encompassed healthcare services, gerontechnology, global SIM cards, travel and home insurance, voice communications, Wi-Fi solutions, mobile services, OTT entertainment, e-commerce, cybersecurity, and AI applications. This integrated approach addressed diverse customer needs while enhancing retention and average revenue per household.
The Infinite-Play strategy showed measurable impact on customer engagement and revenue metrics.
The percentage of customers subscribing to four or more services increased from 25% to 27% year-over-year, with those subscribing to five or more services growing from 8% to 10%. Average revenue per household advanced 3% year-over-year to HKD 218, reflecting successful upselling of bundled services.
OTT subscription services represented a key component of the residential value proposition, with HKBN positioning itself as Hong Kong’s number one telco partner in OTT sales.
OTT average revenue per household grew 14% year-over-year to HKD 115, while paid subscriptions increased 12% to 202,000. The company partnered with leading platforms including Netflix, iQIYI, Disney+, myTV Super, HBO Max, JOOX, WeTV, and KKBOX, offering customers comprehensive entertainment options.
Mobile services formed another pillar of HKBN’s residential strategy, leveraging the fixed network customer base to drive mobile adoption. The company reported 7% year-over-year growth in mobile average revenue per user and a 100% increase in new monthly subscriptions compared to the period average. Strategic initiatives included fixed-mobile convergence targeting high-value users, entertainment integration with bundled OTT services, and senior market packages combining mobile services with gerontechnology.
HKBN emphasized its gerontechnology solutions addressing Hong Kong’s aging population, responding to the 2025 Policy Address initiative for installing intelligent accident detection systems in high-risk households.
The "Elder Buddy" platform offered home safety features including emergency alarms and fall detection systems with 24-hour support, daily care through living environment monitoring sensors, and outdoor smart devices such as 4G smart canes and watches. The HKEX Foundation sponsored gerontech solutions for high-risk carer households, featuring smart fall detection, environmental sensors, wireless emergency bells, and dedicated caregiver mobile applications.
HKBN highlighted several innovative initiatives positioning the company at the forefront of telecommunications technology. The company became Hong Kong’s first telco to launch OpenClaw AI solutions, guided by an "Education First, Application for All" philosophy. Services included professional installation, practical skills training through workshops, and enterprise-grade network protection via NPontZafe endpoint security.
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