SmarTone’s annual net profit rises 10 pc to $525 million amid growing competition

SmarTone Telecommunications (0315)’s full-year net profit increased 10 percent year on year to HK$525 million in the financial year ended in June 2026 amid growing competition in its core consumer postpaid market.

The company declared a final dividend of 17.5 HK cents per share, bringing the full-year dividend to 32 HK cents per share, remaining flat from last year.

Revenue rose 6 percent to HK$6.6 billion, driven by diversified revenue streams and steady underlying service revenue, while total service revenue declined by 3 percent.

Fiona Lau Yeuk-hung, executive director and chief executive officer at Smartone, said that ARPU for the company’s postpaid mobile business has decreased by 0.9 percent to US$220, pressured by rising competition, but 5G home broadband revenue and enterprise solutions revenue have notably increased by 10 percent and 17 percent, respectively. 

The company has also reduced operating costs by 6 percent to HK$1.52 billion, compared to the 4 percent cut last year. Lau stressed the change will not affect customer service, experience, and the company’s investment in its future growth. She added that the company’s plan to retire the 3G network in October can capture better cost savings and optimise network efficiency.

In leveraging artificial intelligence for Smartone’s services, Lau said AI Connect, launched this year, boosts productivity without replacing humans. Smartone will also roll out an AI workplace for small and medium enterprises, in line with the government's AI Training for All policy.

Stephen Chau Kam-kun, executive director and chief technology officer at Smartone, said the company’s Northern Metropolis infrastructure should be advanced or aligned with development, with Smartone coordinating with the government and shareholders on seamless integration.

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