Handset sales impact HTHKH first half results

3 Aug 2016

Hutchison Telecommunications Hong Kong Holdings (HTHKH) has reported a 52% drop in revenue for the first six months of 2016, to HKD5.32 billion (USD685 million). Mobile revenues plummeted 62% year-on-year to HKD3.47 billion due largely to a lack of popular smartphone models in the local market, with hardware sales dropping back from HKD7.15 billion in H1 2015 to just HKD1.49 billion this year. On a more positive note, fixed line service revenues managed to climb 4% y-o-y to HKD2.07 billion. The firm said that excluding hardware performance EBITDA would have climbed 2%, though its reported figure was down 14% at HKD1.25 billion. Profit attributable to shareholders fell 26% on an annualised basis to HKD376 million.

HTHKH claimed 3.08 million mobile subscribers in Hong Kong and Macau at the end of June 2016, up from 2.87 million a year earlier, though the proportion of less lucrative pre-paid users increased over the same period from 46.3% to 51.8%. The company did not report its fixed line customer numbers.