Hutchison Delays 3G Networks Break-Even Date

Hutchison Whampoa has delayed by one year the point where it expected its 3G operations to break into regular break-even profits on a reliable monthly basis. The company had previously anticipated that it would achieve positive monthly earnings before interest and taxes (EBIT) on a sustainable basis in 2008 - but now expects that moment to not occur until some time in 2009.

Speaking at a company dinner last week, Hutchison's Chairman, Li Ka-shing said ''Our 3G business will turn a new page in 2008, on a path to achieving positive full-year cash flow and positive EBIT in 2009,'' the South China Morning Post reported.

Despite concerns about the US economy, he noted that the company's diverse operations are still sound and responding positively.

Hutchison's 3G mobile operations in Italy, the UK, Ireland, Australia, Sweden, Denmark and Austria, posted a loss before interest and tax of HK$11.32 billion (US$1.45 billion) in the first half of 2007.

On the web: South China Morning Post

Posted to the site on 6th January 2008