Hutch narrows 3G losses

Hutchison Whampoa expects its 3G business to turn its first profit this year, after cutting losses at the division in 1H10.
The firm reported a better-than-expected 12% rise in profits in the first six months of 2010 to HK$6.45 billion (€629 million), which was in-part helped by an 82% drop in pre-tax losses at its 3G division to HK$998 million.
Losses fell as 3 Group increased earnings after growing its global subscriber base 6% to 27.8 million, and lowering amortization costs relating to 3UK’s licenses.
Mobile broadband users hit five million during the period, an increase of 16% on 1H09.
Analysts polled by the Wall Street Journal predicted Hutchison would achieve a slightly more modest profit of HK$4.51 billion during 1H10.
Group revenues were up 8% during 1H to HK$153 billion, while EBIT was stable at around HK$18 billion.
Chairman Li Ka-shing forecasts full year revenues would hit $40 billion (€30.2 billion), noting that the “Group has very healthy development prospects and a promising future,” in a statement.