3 Group continues positive momentum in H1 - Mobile World Live

3 Group continues positive momentum in H1

05 AUG 2011

3 Group “continued its EBIT positive momentum from the second half of 2010,” reporting a positive EBIT figure for the first half of 2011, compared with a negative result for the prior year period, according to figures released by parent Hutchison Whampoa. It reported an EBIT of HK$767 million (US$98.3 million), compared with LBIT of HK$998 million, for the six months, on revenue up 23 percent (12 percent in local currencies) to HK$36.76 billion. In a statement, Hutchison said that “all operations, except Hutchison Telecommunications (Australia) Limited and 3 Ireland, achieved improved operating and EBIT positive results in this period.” It was noted that in particular, improvements in profits across 3 Group were affected by HTAL’s AUD78 million (US$81.5 million) first half loss, which contrasted with an A$18 million profit last year, following “network issues and associated adverse publicity.”

The improvement in 3’s results were attributed to growth in its overall customer base and revenue, as well as a continued focus on reducing operating costs through “various cost-saving initiatives.” It was highlighted that 3 Italia saw a one-time gain of HK$457 million following a gain from spectrum assignments, although partially offset by an adverse ruling on mobile termination rates, and other one-off charges. On a group level, its customer base increased by 3 percent to pass 30.2 million, although the Australian business lost customers. It was noted that “management have adopted a robust recovery plan and HTAL anticipates improved financial performance and a return to profitability in the second half of 2011.”

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