Hutchison Whampoa Full-Year Profits Down 43% on One-Off Items

Hong Kong based conglomerate, Hutchison Whampoa has reported a 43 percent slump in 2008 to HK$17.7 billion (US$2.3 billion) - from HK$30.6 billion (US$3.9 billion). The results were however higher than the average forecasts of HK$15.5 billion, according to analysts polled by Thomson Reuters. The reduction in income was due to the removal of a one-off exceptional profit from a year earlier. Revenues grew by 13 percent to HK$348 billion (US$44.9 billion) for the full year.

Of the telecoms divisions:

Hutchison Telecommunications International ("HTIL"), announced turnover from continuing operations for the year of HK$23.7 billion, a 16% increase over last year, and profit of HK$1.88 billion, compared to HK$66,884 million (including a gain on disposal of its Indian operations of HK$69,343 million) reported for 2007. At 31 December 2008, HTIL had a consolidated mobile customer base of 12.1 million, 28% increase over the comparable base last year.

All 3 Group operations reported improved results for the year except 3 Italia. The Group's registered 3G customer base increased 17% during the year and currently stands at over 20.7 million customers. The 3 Group's customer base includes over 2.5 million mobile broadband access customers, a healthy 305% increase from last year.

Overall, total 3 Group revenue increased 1% to HK$60.4 billion (US$7.8 billion) and LBIT reduced 39% compared to last year, to HK$10.9 billion (US$1.4 billion), with all operations achieving improved revenues and reduced LBIT except 3 Italia.

Barring any significant adverse market developments or regulatory developments, management expects the 3 Group to achieve a full year breakeven EBIT position in 2009.

Posted to the site on 26th March 2009