Hutchison Telecom Australia Fiscal Year Loss Widens To A$552.0 Million

SYDNEY -(Dow Jones)- Mobiles company Hutchison Telecommunications (Australia) Ltd. (HTA.AU) said Tuesday its loss for 2004 widened to A$552.0 million from A$409.8 million a year earlier.

The Australian unit of Hong Kong's Hutchison Whampoa (0013.HK) said in a statement it had 879,000 mobile telephone customers at Dec. 31, up 113% from 412,000 customers a year earlier.

At June 30, the company had 626,476 customers, meaning it added around 252,524 customers in the second half of its 2004 fiscal year.

Chief Executive Kevin Russell estimated the company's share of mobiles industry revenue had risen to 7.0% from 3.5% in 2003.

"We are rapidly acquiring high-quality customers," he said in the statement.

Hutchison Telecommunications, which is trying to build a critical mass of customers in Australia's highly competitive mobiles market, said it remains on track to break even in 2005 at the earnings before interest, depreciation and amortization level.

Its major competitors are Telstra Corp. (TLS) and the local units of Vodafone PLC (VOD) and Singapore Telecommunications Ltd. (S12.SG).

Average revenue per customer was A$68 in 2004, up from A$56 in 2003, but the company spent more to get new customers, with the cost rising to A$337 a customer from A$299 in 2003.

The company's 3 business, which is Australia's only third-generation mobile service, grew more than fourfold over 2004 to total 453,000 customers at Dec. 31.

A year earlier, 3 had 87,000 customers.

Orange, the company's second-generation mobile business, had 426,000 customers at Dec. 31, up 31% from 325,000 a year earlier.

Postpaid customers totaled 802,000 and prepaid totaled 77,000.

Russell said the 3G market will grow significantly in 2005 as other companies enter the market.

"3's leadership in the category makes us ideally placed to exploit that growth opportunity, both in terms of service revenue and overall market share," he said."

Posted to the site on 15th February 2005