Multinational CK Hutchison reported plans to spin-off mobile tower assets in eight markets was on track to be completed by mid-2020, as its telecoms division booked increased revenue for 2019 despite a drop in its European customer base.
On completion of the tower separation, announced in August 2019, 28,500 tower assets from its 3 Group Europe, and Hong Kong and Macau operations will be moved into the newly formed CK Hutchison Networks division.
The move, it said, would enable “effective management” of the assets and “provides optionality for CK Hutchison Group Telecom to rationalise and optimise capital efficiency going forward”.
CK Hutchison Group Telecom Holdings, which comprises 3 Group Europe, and the Hong Kong and Macau assets, booked sharp increases in revenue and EBIT in 2019.
Revenue across its eight markets was up 8 per cent year-on-year to HKD93.5 billion ($12 billion) with EBIT increasing 15 per cent to HKD21.1 billion.
The boost in annual revenue partly reflects its complete ownership of Italy operator Wind Tre, a deal completed in September 2018.
Its 3 Group Europe customer base declined 5 per cent in 2019 to 40.6 million, a drop attributed to churn at Wind Tre.
Rest of Asia
Hutchison Asia Telecommunications, which comprises operations in Indonesia, Sri Lanka and Vietnam, reported a drop in overall subscribers of 9 per cent to 45.5 million, as tighter subscriber registration rules in Indonesia took their toll.
Revenue increased 9 per cent to HKD9 billion, with EBIT of HKD1 billion up 229 per cent, largely on improved margins in Indonesia.
CK Hutchison’s net profit is not broken down by division. For the whole group, which includes a wide range of businesses in sectors including energy, construction and retail, it was up 2 per cent to HKD47.6 billion. Revenue decreased 3 per cent to HKD440 billion.Subscribe to our daily newsletter Back