Hutch HK 1H profit up 41%
Hutchison Telecom Hong Kong has announced a 41% rise in first-half profit, thanks largely to reduced network write downs and the mobile data boom.
The fixed and mobile provider boosted total sales 5% to HK$4.28 billion (€416 million), with its Hong Kong and Macau mobile operators growing data revenue 40% to HK$924 million.
In contrast to rival CSL, whose A$170 million (€117 million) impairment charge forced parent Telstra cut its earnings guidance, Hutchison’s mobile group posted an operating profit of HK$361 million on 7% higher turnover of HK$2.8 billion.
Data accounted for a third of mobile sales – as much as the voice business - as it boosted postpaid ARPU to HK$214 from HK$202 for the same period last year.
The company attributed this to the recovery of the local economy “and an upturn in spending and traveling.”
The fixed-line business was flat at HK$1.6 billion, with operating profit of HK$226 million.
Depreciation costs were down 18% to HK$532 million, as the company posted net income of HK$361 million.
Chairman Canning Fok said Hutchison would seek growth from fixed-mobile convergence as it sought to sell the services under a single brand.
He said the fixed-line division, HGC, would aim to meet growing demand for bandwidth and use its optical network to win backhaul business.