Hutchison CAT gets out of the red

21 Apr 2006

Thai CDMA mobile joint venture Hutchison CAT Wireless has reported an operating profit for the first time in its three-year history, but declined to reveal the exact figures. Hutchison CAT said its EBITDA became positive in the last quarter of 2005. It posted revenues of THB4.85 billion (USD128 million) in 2005, whilst earnings before interest and amortisation were THB1.36 billion (USD36 million). It reported 732,000 subscribers at the end of December, compared with 615,000 a year before. Of the total, 387,000 were pre-paid customers, with 345,000 contract users. Average monthly revenue per user (ARPU) for post-paid subscribers in 2005 was THB1,020, whilst ARPU amongst pre-paid users was THB320; blended ARPU was THB669. The company attributed its recent positive financial performance to a 50% decrease in operating costs, increased production efficiency, and reductions in handset and digital content costs. It laid off 550 workers and executives last year, bringing its number of employees down to 1,250. The move was part of a policy to reduce costs by outsourcing network operations to Motorola and IT jobs to Hewlett Packard.

Thailand, Hutch (Thailand)