Ka-shing expects cash-in for 3 next year

7 Jan 2008

Hong Kong’s Hutchison Whampoa has pushed back by a year the date it expects its international 3G mobile operations – 3 Group – to break even on a monthly basis, reports the South China Morning Post quoting company chairman Li Ka-shing. The conglomerate had previously anticipated that the 3G business would achieve positive monthly earnings before interest and taxes (EBIT) on a sustainable basis this year, but now expects not to achieve this result until some time in 2009. According to TeleGeography’s GlobalComms database, Hutchison Whampoa holds UMTS licences in thirteen countries and territories: Hong Kong, Macau, Australia, Austria, Sweden, Denmark, Norway, Israel, Sri Lanka, Indonesia, Italy, the UK and Ireland. Eight of its 3G licensee subsidiaries are part of 3 Group, whilst its Hong Kong, Macau, Israel, Sri Lanka and Indonesia operations come under the Hutchison Telecoms International Ltd (HTIL) umbrella (although some share the 3 brand name). After incurring operational losses of HKD38.4 billion (USD4.93 billion) in 2004, 3 Group beat financial forecasts in 2005 with a loss of HKD26.9 billion, as its turnover more than doubled to HKD37.5 billion, and it narrowed its losses again in 2006 to HKD20 billion, on revenues of HKD50.7 billion.

Hong Kong, CK Hutchison