**Summary of Vianet Group PLC Interim Results for H1 2026 (Six Months Ended 30 September 2025)**
**Financial Highlights**
**Revenue Resilience** £7.67 million, stable compared to £7.69 million in H1 2025.
**Recurring Revenue** £6.44 million (84% of total revenue), consistent with the previous year, highlighting the strength of the subscription model.
**Gross Margin Improvement** Increased to 68% from 67% in H1 2025, driven by operational efficiency.
**Adjusted EBITDA** Rose 20.6% to £1.86 million (H1 2025: £1.55 million).
**Adjusted Operating Profit** Up 10.4% to £1.58 million (H1 2025: £1.43 million).
**Profit Before Tax (PBT)** £0.392 million (H1 2025: £0.018 million).
**Cash Generation** Strong operational cash flow of £1.70 million post working capital.
**Net Debt Reduction** Decreased to £0.5 million (H1 2025: £1.0 million) with cash increasing to £2.60 million (H1 2025: £2.25 million).
**Dividend Increase** Interim dividend raised by 33% to 0.4p per share (H1 2025: 0.3p).
**Operational Performance**
**Smart Machines (Unattended Retail)** Turnover slightly down to £2.97 million (H1 2025: £3.24 million) due to strategic withdrawal from ERP provision. Deployed devices increased to 36,957, with cashless devices rising to 26,000 (71% of total).
**Smart Zones (Hospitality)** Revenue grew 5.6% to £4.7 million, driven by new installations (up 58% YoY to 229) and contract wins, including Star Pubs & Bars and Greene King. USA losses reduced to £0.14 million (H1 2025: £0.25 million).
**Strategic Developments**
**2G/3G Network Transition** The phased withdrawal of 2G/3G networks is a growth catalyst, with Vianet’s 4G LTE solutions driving upgrades and new contracts.
**AI and Analytics** Investments in AI, analytics, and energy-efficiency solutions are translating into commercial momentum.
**USA Expansion** Progress in the USA market with reduced losses and accelerated commercial engagement.
**Management Commentary**
**James Dickson (Chairman & CEO)** Highlighted resilience despite macroeconomic challenges, strong recurring revenues, and strategic investments positioning the Group for long-term growth.
**Sarah Bentham (CFO)** Emphasized disciplined cost control, improving margins, and confidence in the financial outlook despite short-term operational friction from 2G transitions.
**Outlook**
Trading in line with full-year expectations, supported by a robust pipeline and contract delivery.
Sustained demand for 4G LTE upgrades and new contracts in unattended retail and hospitality.
Improved banking facilities provide flexibility for growth investments.
**Conclusion**
Vianet Group PLC demonstrated resilience and growth in H1 2026, with strong financial performance, strategic advancements, and confidence in its long-term prospects despite macroeconomic headwinds. The Group remains well-positioned to capitalize on network transitions and expand its market presence.