Hong Kong Hutchison Expects 6.5 Million 3G Global Customers By Year End

HONG KONG -(Dow Jones)- Hutchison Whampoa Ltd. (0013.HK) expects at least 6.5 million global third generation customers by the end of the year, company Managing Director Canning Fok told a news conference Thursday.

Hutchison currently has 210,000 3G subscribers in Hong Kong, said Fok.

In mid-November, Hutchison said it had 5.9 million 3G users globally.

Fok said Hutchison aims to spin off its Italian 3G operations for a listing in Milan in late 2005.

"Various bankers are pitching" to handle the Italian spinoff, he said.

The Italian spinoff would likely come after the separate listing of Hutchison's telecom operations in India.

Last week, Hutchison Telecommunications International Ltd. (HTX), a unit of Hutchison Whampoa, said it will consolidate its operations in India in the first quarter next year, paving the way for a listing of the new company on the Mumbai stock exchange during 2005.

Hutchison Telecom has second-generation mobile phone operations in eight countries, as well as 3G and fixed-line businesses in Hong Kong.

Hutchison Whampoa also plans to spin off 3G operations in the U.K. after the Italian listing, though there's no time frame for that yet, Fok said.

Fok reiterated confidence in the company achieving its goal of having its 3G operations break even in 2005 on the EBITDA or earnings before interest, taxes, depreciation, and amortization level.

"Things are looking very good," Fok said. He added that by reaching a 3G customer base of 6.5 million by end of the year, the company would meet the high end of analysts' estimates.

Earlier, Hutchison announced that it will pay CIRtel International S.A. EUR469.55 million to pay for a shareholders loan and an additional 1.6% stake in Hutchison's Italian unit Hutchison 3G Italia.

The transaction, which brings Hutchison Whampoa's stake in Hutchison 3G Italia to 90%, marks the end of a dispute whereby CIRtel had demanded repayment of shareholders' loans worth EUR373 million.

Other shareholders of the Italian unit include S. Paolo Imi, BMI, RCS Mediagroup (RCS.MI), Gemina (GEM.MI) and Tiscali (TIS.MI).

-By Julie Wang, Dow Jones Newswires; 852-2802-7002; julie.wang@dowjones.com

-Edited by David Riordan and Sharon Buan

(END) Dow Jones Newswires"

Posted to the site on 23rd December 2004