Hutchison Telecom Reports 20008

Group mobile customer base grew approximately 28% to over 12M

March 10, 2009

3 Min Read

HONG KONG -- Hutchison Telecommunications International Limited (‘Hutchison Telecom’; ‘the Group’; ‘the Company’;SEHK:2332; NYSE: HTX) today announced the financial results for the full year ended 2008 and quarterly key performance indicators for thefourth quarter of 2008. Driven by the strong growth in total customer base and increased revenue contributions from establishedoperations in Hong Kong and Israel, the Group reported an increase of over 16% in total turnover to approximately HK$24 billion and anincrease of 16.8% in earnings before interest, tax, depreciation and amortisation (‘EBITDA’) to HK$6,138 million. EBITDA margin for the fullyear 2008 trended up slightly to 25.9% while operating profit, on a like-for-like basis and after excluding several one-off items recorded in2008, jumped 29.1% to HK$2,092 million reflecting the continued improvement in the fundamentals for profitable growth.

Excluding Vietnam and Ghana, the Group registered approximately 28% yearly growth in its total customer base in 2008, driven mainly bystrong customer acquisition in Indonesia and the continued expansion of its 3G customer bases in Hong Kong and Israel. These, togetherwith the sustained revenue contribution from Hong Kong’s fixed-line operation, led to a 16.3% growth to HK$24 billion in the Group’s totalturnover. Although the Group reported increased expenses incurred from network expansion in Indonesia and GSM rollout in Vietnam in2008, the strong revenue growth as a whole diluted the impact bringing a 16.8% yearly increase to EBITDA. In terms of profitability, theGroup’s EBITDA margin was 25.9% mainly reflecting the impact of the suspension of revenue contribution from the Vietnamese operationsince March 2008 due to the new GSM network rollout.

Several one-off transactions occurred in 2008 taking operating profit to HK$4,060 million compared to an operating loss of HK$2,819million in 2007. These one-off transactions included tower sale in Indonesia* and the disposal of its indirect interest in Ghana. Excludingthese the Group’s operating profit rose 29.1% to HK$2,092 million, reflecting the significant improvement of operating profit from Israeli,Hong Kong and Thailand operations which offset increased losses from Indonesia and Sri Lanka.

Profit for the year was HK$2,919 million and profit attributable to equity holders of the Company was HK$1,883 million. The related figuresfor 2007 included the sale of the Company’s indirect interest in CGP Investments (Holdings) Limited.

Dennis Lui, Chief Executive Officer of Hutchison Telecom said: ‘We are pleased to have delivered a set of satisfying results in a year full ofchallenges. Particularly our Indonesian operation achieved encouraging customer growth and improved operational performance amidstintense market competition. We expect to see this positive trend sustained in 2009 as our network expansion continues. Our Vietnameseoperation is set to launch a nationwide GSM service this month with a network covering all major cities in Vietnam. Together these twomarkets will be the key impetus for growth for Hutchison Telecom.”

“The impact of the global economic uncertainty is yet to be fully seen in telecommunications industry. We continue to be watchful of thepotential challenges. Our operation in Israel embarked on a series of cost-management initiatives last year to enable it to maintain itsoperating efficiency. We will apply this approach across all operations to support profitable growth.” said Mr Lui.Chris Foll, Chief Financial Officer of Hutchison Telecom said: “Excluding Hong Kong and Macau operations, we will invest approximatelyHK$7 billion in 2009 with the majority going into the Indonesian and Vietnamese operations.”

Hutchison Telecommunications (Hong Kong) Ltd.

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