IDT INT'L (00167) expects to incur a loss of approximately HKD 56.8 million in the first half of the year, compared to a profit in the same period last year.

IDT INT'L (00167) announced that the group expects to incur a loss of approximately HKD 56.8 million in the first half of 2026, compared to a profit of approximately HKD 62.6 million in 2025. Despite the group's efforts to increase total revenue and gross profit, the board believes that the performance mentioned above is primarily attributable to (i) the one-time gain recognized in the first half of 2025 from the group's debt restructuring (including (a) the waiver of loans of approximately HKD 48.3 million by creditors; and (b) the payment of approximately HKD 16.4 million of loans to creditors through bond issuance) no longer existing; and (ii) the loss of approximately HKD 59.8 million incurred in the first half of 2026 due to the termination of consolidating the subsidiary's accounts. Excluding the aforementioned one-time items, the group expects to achieve an adjusted operating profit of approximately HKD 3 million in the first half of 2026, compared to an adjusted operating loss of approximately HKD 2.1 million in the first half of 2025. This situation represents a shift from an adjusted loss in the first half of 2025 to an adjusted profit in the first half of 2026, primarily due to increased revenue and improvement in the groups gross profit.