HTHKH FY 2014 results show 9% fall in profit; revenue up 28% on back of mobile/fixed gains

17 Feb 2015

Hutchison Telecommunications Hong Kong Holdings (HTHKH), controlled by Hong Kong conglomerate Hutchison Whampoa, has reported that consolidated turnover increased by 28% year-on-year to HKD16.296 billion (USD2.10 billion) for the year ended 31 December 2014, driven by a 35% increase in mobile turnover and a 6% rise in fixed line sales. However, full-year net profit declined to HKD833 million in the twelve months under review, down from HKD916 million in FY 2013. Consolidated EBITDA and profit before taxation were said to be ‘comparable’ to those in 2013 (at HKD2.679 billion), despite what HTHKH termed ‘a sluggish mobile performance’ in the first half of last year.

Mobile business turnover in Hong Kong and Macau in 2014 amounted to HKD12.632 billion, an increase of 35% compared with HKD9.359 million in 2013, with mobile hardware revenue increasing sharply by 89% to HKD7.986 billion last year. The carrier said that its fixed line business in Hong Kong (Hutchison Global Communications) recorded steady growth in 2014, with service revenue up 6% y-o-y at HKD4.102 billion from HKD3.880 billion in 2013. In particular, HTHKH reported that revenue generated from the international and local carrier market as well as the corporate and business markets increased by 6% and 11% respectively when compared to 2013.

Operationally speaking, Hutchison served approximately 3.2 million mobile customers with its ‘3’ branded services in Hong Kong and Macau at the end of 2014 (31 December 2013: 3.8 million). The decrease in both post-paid and pre-paid customer numbers was mainly due to higher churns of lower-ARPU customers under a planned strategy to focus more on serving higher-ARPU data centric customers with advanced 4G LTE infrastructure, as well as offering comprehensive Wi-Fi hotspot coverage.