3 Group EBITDA climbs 9% in H1; Hutchison Asia EBITDA leaps 204%

11 Aug 2016

Hong Kong-based conglomerate CK Hutchison has reported its results for the six months ended 30 June 2016, at which date its European 3 Group division reported approximately 26.8 million ‘active’ mobile customers, up from the 25.5 million active total it claimed at the same point of last year. Hutchison disclosed that European currency depreciation led to a 1% year-on-year decline in reported revenues for 3 Group in the first half of 2016, with sales for the period reaching HKD30.165 billion (USD3.889 billion), whilst revenues grew by 1% in local currency terms. 3 Group’s EBITDA and EBIT in reported currency grew by 9% and 10% to HKD8.492 billion and HKD5.410 billion respectively in H1 2016. In local currencies, EBITDA and EBIT in the period increased by 12% and 13% respectively, attributed to ‘higher customer service margin, cost synergies realised at 3 Ireland and good cost management in other operations’. 3 Group meanwhile awaits regulatory clearance for the merger of its Italian cellular division and VimpelCom’s Italian subsidiary Wind Telecomunicazioni, with a final decision expected by the end of September this year.

In Asia, at 30 June 2016 Hutchison Asia Telecommunications (HAT) reported an ‘active’ mobile customer base of approximately 72.4 million, up from 62.6 million reported at mid-2015, with Indonesia representing 88% of the base. For the first half of 2016 HAT reported total revenue, EBITDA and EBIT of HKD4.007 billion, HKD1.248 billion and HKD1.197 billion respectively, representing growth of 26%, 204% and 191% over the same period last year respectively. Hutchison said that the improved profitability reflects the continuing expansion in the customer base in Indonesia, which grew 24% year-on-year, as well as improvements in service margins and effective cost control initiatives, allied to strong network coverage and network enhancement measures, and the momentum is expected to continue throughout H2 2016.

Hong Kong, Indonesia, CK Hutchison, Hutchison 3 Indonesia (Tri)