【Macau Telecommunications】CITIC International Telecom Earned 1.1% More Last Year, Distributes Final Dividend of 13 Cents, Dividend Yield 7.2% (Second Edition)

Macau Telecom Parent Company CITIC Telecom International (01883) announced that the total revenue for 2025 is HKD 9.567 billion, a decrease of 0.1% year-on-year; net profit is HKD 920 million, an increase of 1.1% year-on-year; basic earnings per share are HKD 0.249.

CITIC Telecom International will distribute a final dividend of HKD 0.130 per share for 2025, combined with an interim dividend of HKD 0.060 per share, making the total annual dividend HKD 0.190 per share, a 1.1% increase year-on-year. Based on the closing price of HKD 2.63 at noon on Thursday (March 12), the dividend yield is 7.2%.

Regarding the dividend policy, CEO Wu Jun stated that if better investment opportunities arise in the future, the group may moderately adjust its payout ratio. He emphasized that CITIC Telecom International has always maintained a high dividend payout image, and even with increased investment, the payout ratio is expected to remain at a relatively high level. The group may plan to support corporate investment and development through bank loans and other financing methods in the capital markets.

Telecom Service Revenue Declines 1.2%, Mobile Users Increase 6%

Last year, CITIC Telecom International’s telecom service revenue was HKD 7.951 billion, down 1.2% year-on-year. The decline was mainly due to decreases in enterprise, internet, and fixed-line voice service revenues, offset by increases in mobile communication and international telecom revenues.

As of the end of last year, CITIC Telecom International had over 817,000 mobile users, an approximately 6.0% increase year-on-year, mainly driven by a 9.3% increase in postpaid customers to about 623,000. 5G mobile users accounted for 100.0% of the group’s total mobile users, up from 98.4% as of December 31, 2024.

Macau Telecom Acquisition Expands Market, Group Plans to Build Supercomputing Center in Macau

CITIC Telecom International stated that it is increasing investment in Macau to maintain its 5G market advantage. Based on the continuation of the Macau Telecom license agreement with the Macau government through 2025, the company will continue to strengthen operations in Macau, deepen communication with the government, actively respond to market opening, and improve service quality and competitiveness.

Vice President and CPC CEO Huang Zhenghua revealed that, in response to local development needs, the group is planning to build a supercomputing center in Macau.

In January this year, Macau Telecom acquired 100% of the shares of Hutchison Telephone (Macau). Chairman Luo Xicheng disclosed that the transaction was initiated after Hutchison Telephone (Macau) sought a buyer, and Macau Telecom aimed to further expand its market, ultimately leading to the acquisition. Wu Jun stated that the acquisition brought nearly 100,000 monthly paying users, helping to further consolidate the company’s competitive advantage in Macau.

Luo Xicheng said that the next step is for the company to communicate with the government and make further arrangements according to license regulations. In the short term, the company will continue to operate under the Hutchison brand.

Data Center Cabinet Utilization Reaches 70%

Last year, CITIC Telecom International’s capital expenditure was HKD 360 million, with HKD 15 million invested in data center development.

Regarding data center business, Vice President and CPC CEO Huang Zhenghua revealed that the group currently owns two data centers in Hong Kong, providing approximately 2,300 cabinets, with about 70% used for leasing and self-use.

He added that a new batch of cabinets was put into operation in August last year, and the company is currently negotiating cooperation with major financial institutions and well-known enterprises. The utilization rate of cabinets is expected to continue rising in the future.

Source: HKEX Announcement

(Second edition includes earnings conference content)

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