Hutchison Telecom Profts Jump on Indonesian One-Off Sales
Hutchison Telecom has reported a 22% rise in turnover for the first half of this year, to HK$11.8 billion (US$1.51 billion) compared with the same period last year. The Group's mobile customer base grew 68% in the past 12 months to 11.1 million, with a significant percentage of the increase comes from Indonesia. Hutchison Telecom also said that it continued to register a healthy growth of 3G customers in Israel, Hong Kong and Macau.
The total number of 3G customers for the Group had passed two million by the end of June 2008.
The Group's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased 14.7% to HK$3.2 billion (US$412.5 million) with growth particularly strong in Israel and Hong Kong.
Operating profit increased to HK$2.3 billion (US$294 million) for the first six months of 2008 after one-off gains of HK$1,463 million (US$187 million) mainly from the Indonesian disposals and supplier compensations. Excluding the one-off gains and some accelerated depreciation charges in Israel and Vietnam, like for like growth in operating profit was 35%.
Dennis Lui, Chief Executive Officer of Hutchison Telecom, said: "In the first six months of 2008 the Group succeeded in delivering a strong underlying performance both operationally and financially. Our mobile operations in Hong Kong and Israel strengthened their 3G market leadership position during the period collectively passing two million 3G customers. In Indonesia we have seen good sales momentum since the launch of the service in the first half of 2007 and are pleased with the progress to accelerate the network rollout. Whilst in Vietnam we have made progress on the conversion to GSM. These steps enhance the Group's prospect in those markets positioning us favourably to reap the rewards."
Tim Pennington, Chief Financial Officer of Hutchison Telecom said: "There is evidence of some deterioration in our operating environment as the impact of higher inflation and lower growth affects consumer spending in some markets. We are also mindful of the availability of capital and credit in view of the global situation. However, we are a well capitalised company and during this period would aim to maintain high levels of liquidity to ensure we can meet our operating objectives."
Looking ahead to the second half of 2008, Indonesia and Vietnam will continue to require attention and resources to accelerate the expansion and rollout of networks. Hutchison Telecom says that it maintains its focus on the cash generating businesses in Hong Kong and Israel to keep the growth momentum and continues to look for further development by leveraging the success it has built in these two markets. Accordingly its capital expenditure guidance is maintained at HK$7 billion (US$896 million) for 2008.
Posted to the site on 19th August 2008
