HTIL Revenue Grows 64.1%

Hutchison Telecom International reports 64.1% increase in revenues to HK$24.4B during 2005; net loss widened to HK$768M from a restated loss of HK$30M

March 9, 2006

3 Min Read

HONG KONG -- Hutchison Telecommunications International Limited ("Hutchison Telecom" or "the Company" or "the Group"; SEHK: 2332; NYSE: HTX) today announced its financial results for the full year ended 31 December 2005, which have been reported under the revised Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards. The Company also reported its fourth quarter key performance indicators.

The Group reported a 64.1% increase in turnover in 2005 to HK$24.4 billion with most operations reporting turnover growth despite facing increased competition. The upsurge in turnover was driven by growth in the Group's mobile customer base, which increased 39% to 16.9 million at the end of 2005 with particularly strong growth in India. The number of mobile customers in India continues to grow rapidly into the first quarter of 2006 and the Group's global mobile customer base now exceeds 20 million.

In 2005 the Group for the first time consolidated its Israeli business, Partner Communications Company Limited ("Partner"), adding HK$6.6 billion of turnover. Excluding this one off event the underlying turnover growth was 19.5%.

Earnings before Interest, Tax, Depreciation and Amortisation ("EBITDA") increased to HK$6.5 billion compared with HK$3 billion in the previous year following a strong performance in India, a welcome recovery in the mobile operations in Hong Kong and a reduced loss in Thailand.

The Group saw a strong improvement in operating profits of the underlying businesses (operating profit before disposal of investments and others) which moved from a loss of HK$144 million in 2004 to a profit of HK$2,083 million in 2005. After accounting for the profits on disposal of investments and others as well as share of results of associated companies, the Group's operating profit increased to HK$2,240 million compared with operating profit of HK$1,494 million in 2004, which had included a one-off gain of HK$1,300 million.

Profit before tax increased 32.8% to HK$636 million, a strong improvement on 2004 reflecting the generally improved performance across all the businesses. After tax and losses from discontinued operations, which principally relate to the sale of the Paraguay operations, the loss for the year was HK$150 million.

The increases in depreciation and amortisation, net interest and tax reflect the first time consolidation of Partner, which was equity accounted for in 2004, as well as the increased scale of the Group's business.

The Group recorded a loss to equity holders of the Company of HK$768 million represented by loss from discontinued operations of HK$352 million and loss from continuing operations of HK$416 million or 9 Hong Kong cents per share.

Dennis Lui, Chief Executive Officer of Hutchison Telecom, said: "We are delighted to report such strong performance. In 2005, we delivered over HK$2 billion in profits on continuing operating activities, against a small loss in the previous year."

"2005 was an important year for Hutchison Telecom in other ways," Mr Lui said. "We strengthened our position in the high growth markets of India, Indonesia and Vietnam through acquisitions and investment. We plan to invest substantially in 2006 to further strengthen our position as one of the leading operators in emerging growth markets," Lui said.

Hutchison Telecommunications International Ltd. (NYSE: HTX)

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