HTA posts net profit of AUD467.7 million for FY2009

19 Feb 2010

Hutchison Telecommunications (Australia) Ltd (HTA) has revealed its annual net profit for the twelve months ended 31 December 2009 was AUD467.7 million (USD422 million), up from a net loss of AUD163.1 million in the same period a year earlier. HTA noted that net profit included a gain following its merger with Vodafone Australia of AUD587.3 million; the underlying net loss, before the gain on the merger, was AUD119.6 million.

For the 2009 fiscal year HTA noted that, having formed its partnership with Vodafone in June 2009 under the Vodafone Hutchison Australia (VHA) banner, the results reflected the completion of the tie-up, and comprised five months of revenue from just its former Hutchison 3G Australia (H3G) business, with seven months of an equity accounted result for VHA. Total revenue for the twelve-month period rose 25.7% from AUD1.62 billion to AUD2.04 billion, while service revenue rose 28.4% year-on-year to AUD1.88 billion.

HTA also said that the merger with Vodafone had led to benefits of scale, noting that VHA had achieved marked reductions in operating expenditure per subscriber and reductions in capital expenditure as a percentage of service revenue. Canning Fok, chairman of HTA, said of the overall results and the tie-up: ‘HTA is pleased with VHA’s early progress on the merger and continuing customer growth.’

VHA reportedly signed up some 584,000 new customers in the second half of 2009, boosting its total customer base to 6.9 million at end-2009. The combined operator’s customer acquisition cost per unit fell from AUD238 to AUD165, attributed to an increase in the number of pre-paid subscribers. HTA said that 56.8% of the VHA subscriber base was signed up to post-paid services, compared to 90.6% for H3G prior to the merger. It also revealed that VHA had 673,000 mobile broadband subscribers, up from 288,000 at end-2008, while a further 717,000 customers had signed up to 3G services on their mobile handsets.