HTHKH boosts 1H profit by 57%

27 Aug 2015
00:00
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Daily News

Hutchison Whampoa's new joint holding company CK Hutchison Holdings has reported mixed results from its telecom operations, including Hutchison Telecommunications Hong Kong Holdings (HTHKH) and Hutchison Asia Telecommunications, for the first six months of the year.

HTHKH reported a strong 57% increase in profit for the period to HK$508 million ($65.5 million). The company attributed the results to improvements in its mobile operations.

This was achieved through churn of lower-valued accounts - its 3-branded operations in Hong Kong and Macau had a combined customer base of 2.9 million by the end of the half-year, down from 3.6 million in mid-2014.

CK Hutchison's Asian operations Hutchison Asia Telecommunications (HAT) by contrast posted a 9% decline in revenue to HK$3.18 billion and an 18% slump in ebitda to HK$411 million, despite a 15% increase in the division's active customer base to 62.6 million.

Unfavorable currency fluctuations impacted earnings for the quarter, particularly as a result of the decline of the Indonesian rupiah

HAT encompasses Hutchison's mobile operations in Indonesia (through Hutchison 3 Indonesia), Vietnam (Vietnamobile, operated in partnership with Hanoi Telecom) and Sri Lanka (Hutchison Telecommunications Lanka).

Finally, the 3 Group Europe division grew its revenue by 16% and ebitda by 40% in local currencies, but revenue fell 2% in reported currency due to the weakness of the Euro.

CK Hutchison Holdings was formed through the merger of Hutchison Whampoa and Cheung Kong Holdings in June this year.

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