HTHKH annual turnover drops 17.8% on mobile equipment sales

25 Feb 2014

Hutchison Telecommunications Hong Kong Holdings (HTHKH) has reported that consolidated turnover for its Hong Kong (mobile and fixed) and Macau (mobile only) operations was HKD12.777 billion (USD1.647 billion) in 2013, a drop of 17.8% compared with HKD15.536 billion in 2012, mainly due to significantly lower revenue from mobile device sales. Consolidated EBITDA and EBIT in 2013 were HKD2.674 billion and HKD1.339 billion respectively, down from HKD3.008 billion and HKD1.726 billion respectively in 2012. Net profit attributable to shareholders in 2013 amounted to HKD916 million compared with HKD1.215 billion the previous year.

Mobile business under the ‘3’ brand contributed turnover of HKD9.359 billion in 2013, down from HKD12.383 billion in 2012, as revenue from mobile hardware sales dropped by 39% to HKD4.221 billion as a result of lower demand for new handset models during the year. Mobile service revenue fell by 6% to HKD5.138 billion of which a 2% drop was due to the transition from a subsidised handset business model to a non-subsidised model. The transition began in 2010 and was completed in the first half of 2013. All post-paid customers under handset bundled contracts as at the end of 2013 were on the non-subsidised handset business model, Hutchison noted. Mobile service revenue decreased by a further 4% as customers migrated to lower-tier service plans. Mobile EBITDA and EBIT in 2013 were HKD1.570 billion and HKD961 million respectively, representing drops of 25% and 35% respectively. As of 31 December 2013, total customers in Hong Kong and Macau was steady at approximately 3.8 million, while over 60% of 3G and 4G LTE post-paid customers were ‘smart device users’.