TELECOM DIGIT (06033) issued a profit warning, expecting that the company's annual comprehensive loss attributable to owners should not exceed HK $34.3 million, turning from profit to loss compared to the previous year.

TELECOM DIGIT (06033) announces that the Group is expected to incur a comprehensive loss attributable to owners of the company of not more than HK$34.3 million for the year ending March 31, 2026 (2025: a profit of approximately HK$22.6 million). The announcement states that the expected loss is mainly due to the following factors: (i) an unfavorable market environment leading to a decrease in gross profit of not more than HK$4.7 million compared to the same period last year; (ii) a non-cash impact of approximately HK$55.8 million from impairment losses on investment properties (2025: reversal of impairment losses of approximately HK$1.1 million); (iii) a decrease of not more than HK$10.4 million in fair value gains on financial assets and derivative instruments; (iv) a decrease by not more than HK$7 million in the performance of associated companies; (v) an increase of not more than HK$5.7 million in income tax expenses; (vi) a decrease of not less than HK$13.2 million in employee costs compared to the previous year; and (vii) a decrease of not less than HK$13.7 million in financing costs compared to the same period last year.