Wind Tre consolidation helps boost CK Hutchison results

2 Aug 2019

The telecoms operations of Hong Kong-based CK Hutchison, which span Asia and Europe, brought in revenues of HKD50.30 billion (USD6.4 billion) in the first half of 2019, up from HKD44.23 billion in the year-ago period. 3 Group Europe saw sales jump 20% year-on-year to HKD43.46 billion, boosted by the full inclusion of the Italian operator Wind Tre in which the group took a 100% stake in September 2018. Hutchison Telecom Hong Kong Holdings (HTHKH), which covers the group’s businesses in Hong Kong and Macau, saw revenues climb 1% to HKD2.52 billion, while Hutchison Asia Telecom (HAT), which has operations in Indonesia, Vietnam and Sri Lanka, brought in HKD4.33 billion, up 2% y-o-y. EBITDA for the combined telecoms operations reached HKD17.68 billion, up from HKD13.83 billion a year earlier, again helped by the consolidation of Wind Tre.

In operational terms, 3 Group Europe had 41.7 million active subscribers in the UK, Ireland, Italy, Austria, Sweden and Denmark at the end of June 2019, a 7% drop from mid-2018 due mainly to declines at Wind Tre. HTHKH had 3.3 million active cellular subscribers at the same date, while HAT had 45.7 million customers, a drop of around 29% due largely to a user registration programme in Indonesia which saw a large number of inactive accounts wiped.

Meanwhile, CK Hutchison has altered its corporate structure, combining 3 Group Europe and HTHKH into a single entity dubbed CK Hutchison Telecom. As part of the move, CK Hutchison Telecom has combined its European mobile tower assets into CK Hutchison Network Holdings, an infrastructure firm which controls 28,500 tower sites in the six markets in Europe. The firm says there is also an option to incorporate its 9,300 tower sites in Asia in future.

Hong Kong, CK Hutchison