Positive results for CK Hutchison as Li announces retirement

16 Mar 2018

Hong Kong-based conglomerate CK Hutchison, whose operations include telecoms businesses in Asia and Europe, has reported revenues of HKD414.8 billion (USD52.9 billion) for full-year 2017, up 9% on the 2016 result. EBITDA climbed 10% to HKD104.35 billion. Besides telecoms, the group is active in the ports, retail, energy and infrastructure sectors. Meanwhile, the group’s billionaire chairman Li Ka-shing has announced his retirement at the age of 89, with eldest son Victor Li to assume his role.

3 Group Europe, which has businesses in the UK, Italy, Sweden, Denmark, Austria and Ireland, reported revenues of HKD70.7 billion in full-year 2017, up 13% year-on-year. Service revenues climbed 17% to HKD56.0 billion and EBITDA jumped 28% to HKD24.3 billion. Pre-tax profit stood at HKD16.6 billion, up from HKD12.8 billion in 2016.

The 3 Group had 44.78 million active mobile customers at the end of 2017, down 3% y-o-y, including 10.07 million in the UK (up 10%), 26.57 million in Italy (down 7%), 1.90 million in Sweden (down 4%), 1.27 million in Denmark (up 6%), 2.90 million in Austria (down 1%), and 2.06 million in Ireland (down 1%). The group’s registered user total was down 1% at 52.28 million. Average blended monthly ARPU across the six operations stood at HKD15.25 in 2017, down 7% on the year before.

The Hong Kong and Macau mobile operation HTHKH reported revenues of HKD9.7 billion in 2017, down 20% y-o-y, though EBITDA jumped 66% to HKD4.3 billion thanks to the disposal of its fixed line business last year. There were 3.3 million active cellular subscribers in the two territories at end-2017, up 3% from twelve months earlier.

Hutchison Asia Telecommunications (HAT) had an active customer base of 75.0 million at the end of 2017, down 3% y-o-y, with Indonesia representing 85% of the total. HAT’s other operations include Vietnam and Sri Lanka. Its revenues were down 6% in 2017 at HKD7.70 billion, while EBITDA plummeted 76% to HKD558 million due to reduced service margins and higher operating costs.

Hong Kong, CK Hutchison