Sales down 6%, profit up 6% at CK Hutchison

23 Mar 2017

Hong Kong-based industrial group CK Hutchison Holdings has reported a 6% rise in its profits for full-year 2016 to HKD33.01 billion (USD4.23 billion), boosted by its telecoms, retail and infrastructure operations. Revenues for the year dropped 6%, however, to HKD372.69 billion. EBITDA was flat compared to 2015 at HKD91.98 billion.

In terms of its telecoms operations, 3 Group Europe, which has active units in the UK, Ireland, Italy, Denmark, Sweden and Austria, saw a 1% decline in full-year revenues to HKD62.42 billion, with the fall mainly attributed to exchange rate depreciation; in local currencies, sales would have been up 5% year-on-year. EBITDA climbed 9%, however, to HKD18.94 billion, thanks mainly to uplift from the merger of 3 Italia and Wind Telecomunicazioni in Italy in November to create Wind Tre. Subscriber numbers across Europe rose 76% in 2016 – mainly thanks to the Italian merger – to end the year at 45.9 million.

Hutchison Asia Telecommunications (HAT), which covers the group’s operations in Indonesia, Vietnam and Sri Lanka, reported total revenue of HKD8.20 billion, up 19% y-o-y, driven by mobile data growth at the Indonesian business. It controlled 77.4 million subscribers at end-2016, with Indonesia accounting for 88% of the total.

The domestic telecoms unit Hutchison Telecommunications Hong Kong Holdings (HTHKH) reported a 23% slide in profits for the year to HKD701 million, due largely to lower hardware sales, as well as a reduction in mobile roaming revenues. Sales were down 45% at HKD12.13 billion.

Hong Kong, CK Hutchison