Hutchison reports 3 Group and HAT interim results

5 Aug 2011

Hong Kong-based conglomerate Hutchison Whampoa has reported that its 3 Group division achieved revenue growth of 12% in local currencies for the six months to the end of June 2011, and a 23% increase in reported currency to HKD36.76 billion (4.71 billion), driven by higher sales of smartphones, tablet computers and other mobile data devices. 3 Group reported operating profit (EBIT) of HKD767 million in 6M11, compared to an operating loss of HKD998 in the first six months of 2010. All 3 Group units except Hutchison Telecommunications Australia and 3 Ireland improved their operating income results, reflecting the overall customer base growth as well as a continuing focus on reducing operating costs. 3 Group’s registered 3G customer base increased 3% during the first half of the year and currently totals over 30.2 million customers, according to the company’s report. Customer growth was adversely impacted by a 5% decline in the customer base in Australia due to lower sales and higher churn resulting from network performance issues and related negative publicity. 3 Group’s customer base includes over 6.1 million mobile broadband subscribers, up by 6% during the six-month period.

Emerging markets division Hutchison Asia Telecommunications (HAT) saw its revenues from ongoing operations increase by 37% in January-June 2011, reflecting higher turnover from all three of its remaining mobile operations in Indonesia, Vietnam and Sri Lanka. HAT (responsible for the former Hutchison Telecommunications International operations) reported total revenue of HKD1.05 billion, down by 12% year-on-year, mainly due to the disposal of its Thai unit in January 2011. Operating loss across HAT’s operations increased by 2% due to costs incurred in expanding its networks and customer bases in Indonesia and Vietnam. As of 30 June 2011 HAT had a total of 29.0 million mobile users, representing a 16% increase during the first half of the year on a pro forma basis. Hutchison Whampoa’s domestic subsidiary Hutchison Telecommunications Hong Kong Holdings reported its results earlier in the week.

Hong Kong, CK Hutchison