HTHKH reports 9% drop in revenues

1 Aug 2013

Hutchison Telecommunications Hong Kong Holdings (HTHKH) has reported consolidated turnover of HKD6.149 billion (USD793 million) for the first six months of 2013, representing a 9% year-on-year drop compared with HKD6.730 billion in the corresponding period of 2012. Consolidated EBITDA and EBIT for the first half of 2013 were HKD1.471 billion and HKD820 million respectively, up by 2% from HKD1.440 billion and by 3% from HKD795 million respectively in H1 2012. Net profit attributable to shareholders of the company for the six months ended 30 June 2013 increased by 2% year-on-year to HKD572 million from HKD562 million a year earlier.

Underlying the results, turnover of the Hong Kong operator’s 3-branded mobile business (including Macau) dropped by 15% year-on-year, reaching HKD4.452 billion in 6M 2013, of which service revenue amounted to HKD2.638 billion. The drop in total revenue was mainly due to a 28% year-on-year mobile equipment revenue decrease, although mobile service revenue also fell, by 3% year-on-year, as 3’s business strategy continued a transition from a subsidised handset business model to a non-subsidised model. Mobile EBITDA and EBIT in the first-half were HKD941 million (-5% year-on-year) and HKD650 million (-3%) respectively. As of 30 June 2013, 3 served 3.78 million customers in Hong Kong and Macau (30 June 2012: 3.64 million). At the same date, 61% (30 June 2012: 55%) of its Hong Kong and Macau 3G/4G post-paid customers were using smart devices, as the upward migration of existing customers to higher-value services, including 4G LTE plans, continued.

Revenue of the group’s Hong Kong fixed line business (under the Hutchison Global Communications and 3 brands) grew by 12% year-on-year to HKD1.927 billion in 1H13, while EBITDA and EBIT rose year-on-year by 16% and 28% respectively to HKD593 million and HKD233 million.